Government must fix “£3.5 billion mistake” on apprenticeships

Four trade bodies, including the REC, have written to the government to call for urgent reform of the Apprenticeship Levy. So far, £3.5 billion of Levy funds have expired under the scheme, because businesses were unable to meet the restrictive requirements to draw on funds they’d already paid in.

In the joint letter, the REC, British Retail Consortium (BRC), UKHospitality and techUK say the Government is “holding back investment” in critical training that is vital to train the future workforce, provide better wages, increase productivity, and boost economic growth.

Neil Carberry said: “The levy has always suffered by being imposed on businesses, rather than being designed with them and with learners. That means it has not had the incentive effects originally hoped for. It also pushes many workers out –like the million temps placed into work every day. Their wages are levied, but the system locks them out of training. A levy that allowed firms to access a range of high-quality training would see far greater uptake and put more pressure on those firms who are not doing enough. A redesign with business at the table could transform skills performance, growth and prosperity.”

You can read the letter here.