{"id":23804,"date":"2016-04-29T11:49:56","date_gmt":"2016-04-29T11:49:56","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=23804"},"modified":"2016-04-29T11:49:56","modified_gmt":"2016-04-29T11:49:56","slug":"government-radically-rethink-apprentice-training-levy","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/government-radically-rethink-apprentice-training-levy\/23804\/","title":{"rendered":"Government should \u201cradically rethink\u201d apprentice training levy"},"content":{"rendered":"

The CBI has called on the government to \u201cradically rethink\u201d the apprenticeship training levy, due to come into force next year\u2026<\/span><\/h2>\n

The apprenticeship levy should be reconsidered before it comes into force next year, according to the UK\u2019s largest business lobby group. The Confederation of British Industry<\/span><\/a> said the government needed to \u201cradically rethink\u201d the plans, as there are major concerns over the viability of the system.<\/p>\n

Director-general of the CBI Carolyn Fairbairn said: \u201cFirms want to create quality apprenticeships and they\u2019re ready to work with the government to do this. But as it stands that\u2019s not what the levy is doing,\u201d she will tell a City of London audience.<\/p>\n

\u201cThe government has the opportunity to create a once-in-a-generation revolution in skills, but it is currently only likely to deliver another once-in-an-administration shake-up.\u201d<\/p>\n

The apprenticeship levy will see businesses with a pay bill of \u00a33m or more cough up 0.5 per cent payroll tax towards funding the levy. An allowance will then be paid to employers to offset the levy and for training.<\/p>\n

Businesses have expressed concerns over the plan, which they deem rushed and poorly thought-out.<\/p>\n

The government is aiming to create three million apprenticeships by 2020. However, research from the Financial Times revealed in February that more than 30 per cent of people who embark on an apprenticeship training programme fail to complete them.<\/p>\n

\u201cThe levy misunderstands training only as apprenticeships and the current design encourages firms to rebadge their existing programmes,\u201d Fairbairn said.<\/p>\n

\u201cOther levy systems in Ireland, Germany, Denmark, France and Quebec give greater flexibility on spending than the UK government is proposing. So it can be done \u2014 and this is how our levy should work too.\u201d<\/p>\n

The CBI wants to see the following implemented by government:<\/p>\n