EEF, the manufacturer’s organisation, has published a report on the Apprenticeship Levy, excoriating the take-up and provision of apprenticeships in England.
The levy, which was introduced in 2016 for English students, is widely perceived to have been a failure by employers. Companies with a turnover of more than £3million a year pay into the levy scheme, for which they can apply for funding to train their apprentices.
Verity Davidge, head of education at EEF, said the impact of the levy was ‘highly damaging for employers and apprentices.’ Her group seeks a manufacturers’ summit with the Government to rescue the apprenticeship scheme, amidst fears the workforce entering the employment market is woefully underequipped with necessary skills in construction, manufacturing and engineering.
EEF Apprentice survey
EEF commissioned a survey of manufacturers on the apprenticeships scheme, finding almost all managers wanted the levy system changed, 11 per cent of companies running an engineering apprenticeship had cancelled or delayed it because of the levy, and half said standards were not ready to deliver.
In the final quarter of 2017, apprenticeship starter numbers dropper by 59 per cent year-on-year.
Davidge added: “What should have been a win-win situation has turned into a lose-lose - we must address the alarming drop in starts initially and then look at positive solutions which are on the table to make the levy work for employers and learners in the long term.
“Government must now sit down with business and find a way to rescue the Levy so that it meets the original pledges made to companies when it was introduced.”
EEF’s report included responses from manufacturers surveyed on the levy, stating: “The level of red tape and hoop jumping increased significantly - for us this diverted resources away from apprenticeship delivery to admin which is non-value adding.”
“…The idea of 24 months to use the Levy on a first-in-first-out basis is flawed and should be reviewed. Most of our Engineering Apprenticeships take 4 – 5 years to complete.”