The Young Workers Survey 2017 has found that the levy is unlikely to change the number of young people recruited into apprenticeships, especially in smaller employers.
Almost two-fifths (39.2%) of those surveyed see the levy as an opportunity to recruit additional young apprentices or take them on for the first time. However, a similar number – 37.9% - feel the Levy will have no impact on their recruitment of young workers.
The data shows that SMEs, across all industries, are most likely to struggle when the Apprenticeship Levy comes into force on April 6. Just over half (53%) of medium-sized companies and only a quarter of smaller ones say that the levy will result in them either increasing their use of young apprentices or employing them for the first time. By comparison, 60% of employers with over 1,000 members of staff plan on increasing their numbers.
“The new Apprenticeship Levy is less than two months away, however, it appears some smaller businesses that will have to pay the levy because their wage bill exceeds £3m a year, haven’t properly thought through the implications,” warned Sheila Attwood, pay and benefits editor at XpertHR. “It’s possible that some SMEs could find they will need to increase their recruitment of apprentices in future to recover these costs, once the full impact of the Levy becomes apparent.
“Apprenticeships are a valuable part of the UK economy, and many employers are successfully using them as a way of boosting the skills of their employees. As well as ensuring they have the financial capability to pay the Levy, it’s important that organisations are proactive, and identify areas where training is most needed to ensure the Apprenticeship Levy works in favour of their organisation.”