The delay, they say, is necessary in order to protect the quality of apprenticeships, adding that the levy would stretch already struggling budgets. Employers need a period of stability and certainty in the wake of the Brexit decision. Guidance on the levy, which was due in June but has not yet been delivered, is also needed, the letter says; without that, employers are unable to plan for the levy, adding to the levels of uncertainty.
The letter cites evidence that the levy could undermine the apprentice quality by encouraging some employers to invest in intermediate level apprenticeships at the expense of advanced and higher-level programmes.
Terry Scuoler, chief executive of EEF, the manufacturers’ organisation, said: “Our industry is passionate about high quality apprenticeships and we want to see more of them. However, if the government pushes ahead with its current timetable for the apprenticeship levy we could see a decline in both the quality and quantity of apprenticeships. This will do nothing for the apprenticeship brand or the government’s ambitious three million target.
“Industry and others have come up with solutions to some of the major sticking points of the apprenticeship levy, but these require more time. A delay to implementation is vital if we are to successfully get this policy back on track, avoid hitting business with additional costs at a highly uncertain time and ensure that the apprenticeship levy fits in fully with a wider industrial strategy.”
Caron Bradshaw, chief executive of Charity Finance Group, who co-ordinated the letter, added: “The government would be taking the responsible path in delaying the levy and taking the time to engage with charities and other employers, who have already proposed solutions to some of the challenges presented by the levy, on how it could work to genuinely improve skills across the British economy and help support young people into meaningful employment.”
