CIPD: 53% of employers paying apprenticeship levy would rather have a training levy


Of those employers currently paying the apprenticeship levy, more than half would prefer a more general training levy, just 17% support the levy in its existing form and nearly half expect that their organisation will simply rebadge existing training to reclaim their allowance.

A CIPD survey of employers paying the apprenticeship levy has found that 4 in 10 say it will make little or no difference to the training they offer. More than half intend to rebadge existing training activity into level 2 apprenticeships - the equivalent of 5 GCSEs.

The report, ‘Assessing the early impact of the apprenticeship levy’, comes after official government figures showed a decline in the number of apprenticeship starts, with just 48,000 between May 2017 and July 2017, a 59% drop on the same period in 2016.

The survey of more than 1,000 levy-paying employers finds that more than half want the apprenticeship levy replaced with a training levy.

One fifth of levy paying firms have no plans to develop apprenticeships, instead writing the levy off as a tax.

The report demonstrates the underwhelming reception the apprenticeship levy has had among employers and makes some recommendations for government.

These include reforming the apprenticeship levy into a more flexible training levy and running an awareness campaign.

The CIPD also recommends that the Government invests £13 million a year in HR support for small business to enable them to respond more positively to similar initiatives.

The body also calls for an urgent review of apprenticeship standards by the Institute for Apprenticeships and Technical Education to ensure provision of quality learning and education.

Lizzie Crowley, Skills Adviser at the CIPD, says: “Apprenticeships are extremely important, but other forms of training are equally valuable and often more flexible and better suited to the needs of organisations. A move to a more flexible training levy would have the effect of continuing to prompt greater employer investment in skills, including apprenticeships, but in a way that is much more responsive to employers’ needs.

“Another side effect of re-badging is that an increasing proportion of apprenticeships are going to existing and often older employees, including already well-qualified managers, meaning fewer are available to help young people make the transition from education to the workplace – the original purpose of apprenticeships.”

 “The Government needs to seriously review the levy to ensure it is flexible enough to respond to employers’ needs and to drive the greater investment in high quality training and workplace skills needed to boost UK productivity.”

Thursday, 11 January 2018

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CIPD: 53% of employers paying apprenticeship levy would rather have a training levy