A new survey from the City & Guilds Group has found that 92% of those firms who pay the Apprenticeship Levy would like greater flexibility in how they spend their Apprenticeship Levy allowance.
New Apprenticeship Levy Survey
City & Guilds Group interviewed 765 firms who pay the Apprenticeship Levy. 92% stated that they would like greater flexibility in how they spend the monies. 55% would like to continue to spend the monies on apprenticeships, while 45% would like the option of spending it on non-apprenticeship training. Asked how they would prefer to spend the Apprenticeship Levy allowance on any non-apprenticeships training, the firms responded as follows:-
- On technical courses customised to the firms requirements - 36%
- Health & safety/compliance - 33%
- Work placements and internships - 32%
- Training in leadership and management - 31%
- Continuous professional development - 31%
Gerry Berragan, the chief executive of the Institute for Apprenticeships (IFA), recently stated that the Government was likely to miss its target of creating 3 million new apprenticeships by 2020. Nevertheless, the Chancellor of the Exchequer, Philip Hammond, did announce last October that the amount of levy funds that can be transferred to other firms within the supply chain will be increased from 10% to 25%. However, City & Guilds research indicates that this needs to be increased to 35% to be effective.
New Consultation On Apprenticeship Levy
The Government has also announced that it is to consult on the operation of the Apprenticeship Levy post 2020.
Reaction To The Survey
In response to the new survey on the Apprenticeship Levy, Kirstie Donnelly, the managing director of City & Guilds Group, stated: "The turmoil we are facing, as a result of uncertainty around Brexit as well as the rapidly changing world we live in, means that it’s never been more urgent to improve the skills of our workforce and invest in home-growing the skills that we may no longer be able to import from abroad. Apprenticeships have a huge potential to deliver on this, but the system is still not responsive enough to the needs of employers. Businesses need more flexibility to use the apprenticeship levy in a way that will truly help them fill skills gaps, upskill their workforce and shore up their talent pipeline for the future. But, flexibility alone isn’t enough. The Government must provide greater clarity on apprenticeship data in order to equip the industry with the holistic view it needs and enable employers to understand its wider impact. Although we welcome the Government’s commitment to introduce reforms, they are yet to set this in motion. We have set out a list of twelve recommendations, eleven of which are for the Government to act on, as we urge them to prioritise apprenticeships, maintain momentum and make better use of data to help all those involved to create the skilled and productive workforce we so desperately need."
Nevertheless, Mark Dawe, the chief executive of the Association of Employment and Learning Providers (AELP), told People Management that: "The government should resist calls that the levy be used for other types of training in addition to apprenticeships....The current funding mechanisms under the levy have led to an imbalance of provision at higher levels, which is damaging to the government’s own social mobility agenda."
