Coming into force today (Thursday), the levy will require employers with an annual wage bill of more than £3 million to pay 0.5% of it towards funding apprenticeships. The government has said the money will be invested in quality training for apprentices and double the annual investment in apprenticeships.
But, the CBI has cautioned that businesses still have significant concerns about whether the policy will deliver the high-quality training businesses and apprentices need.
Business concerns, it said, include:
- A lack of fully-developed success measures and long-term goals focused on apprentice progression and closing skills gaps. Concerns remain about the level of commercial acumen available to shape the successful design of the system
- Some firms face paying for the Levy but being are unable to access new or updated training standards, or have no approved providers available locally
- Slow progress in approving new apprenticeship standards for companies to use
- A lack of accessible information for employers about the government’s list of approved providers and their quality of training
- Ineffective careers guidance in schools about available apprenticeship options
- A narrow definition of what employers can spend their Levy vouchers on for off-the-job training.
However, despite the concerns, businesses are also committed to making the levy work, it said. The CBI has repeated its call for the government to broaden its focus, prioritising quality and long-term success measures alongside growing apprentice numbers.
Neil Carberry, CBI director for people and skills policy, said: “Given the speed and scale of the introduction of the Apprenticeship Levy, businesses have been working hard to get ready against a tight timescale.
“Now that the system for paying and reclaiming the levy has gone live, the time has come to focus on quality training that meets company and apprentice needs.
“For the levy to be a success, it must deliver long-lasting careers and close skills gaps, not just create more apprenticeships. Shifting the focus onto quality is essential to delivering much needed stability to England’s skills system, that’s why business is focused on helping the Institute for apprenticeships get this right.
“As it stands, there is a genuine risk that firms aren’t going to be able to use their funds if the system does not deliver the training apprentices need.”
Skills minister Robert Halfon said: "There has never been a more important time for Britain to invest in the skills of our people and businesses. To make Britain stronger and fairer, we need to make sure that everyone gets the chance to climb the ladder of opportunity to gain the education and skills they need to be successful in life.
"Our Apprenticeship Levy is a massive part of this. More than 90% of apprentices go into work or further training, and the quality on-the-job training on offer will make sure we have the people with the skills, knowledge and technical excellence to drive our country forward.
"Building an apprenticeship and skills nation is essential in ensuring that we have the home-grown workforce we need in post-Brexit Britain to address the skills shortages facing industry and give everyone the chance to succeed."
