{"id":47611,"date":"2018-10-02T08:58:19","date_gmt":"2018-10-02T07:58:19","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=47611"},"modified":"2018-10-02T08:58:19","modified_gmt":"2018-10-02T07:58:19","slug":"apprenticeship-levy-reform","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/hr-skills-news\/apprenticeship-levy-reform\/47611\/","title":{"rendered":"Government announces apprenticeship levy reform"},"content":{"rendered":"

In response to industry criticism, the government has revealed several measures it hopes will rescue its failing Apprenticeship Levy scheme<\/h2>\n

Announcing the reforms at the Conservative party\u2019s annual conference in Birmingham, Chancellor of the Exchequer Philip Hammond said the proposed changes would give companies more flexibility.<\/p>\n

An extra \u00a390m of government funding will enable employers who pay the apprenticeship levy \u2013 those with an annual wage bill of at least \u00a33m \u2013\u00a0to spend a quarter of their apprenticeship funds on people working for businesses in their supply chain, while the Institute for Apprenticeships<\/a> would receive an additional \u00a35m to introduce new standards and update existing ones so that more courses can be offered.<\/p>\n

In the coming weeks, the government will set out a process to seek views on the operation of the apprenticeship levy after 2020 to ensure it supports the development of the skilled workforce businesses need for the new economy.<\/p>\n

Hammond said: \u201cWe have heard the concerns about how the apprenticeship levy is working so today we\u2019ve set out a series of measures to allow firms more flexibility in how the levy is spent.<\/p>\n

\u201cBut we know that we may need to do more to ensure that the levy supports the development of the skilled workforce our economy needs. So in addition to these new flexibilities, we will engage with business on our plans for the long term operation of the levy.\u201d<\/p>\n

The Federation of Master Builders (FMB)<\/a> has been a prominent critic of the government\u2019s apprenticeship levy. \u00a0FMB chief executive Brian Berry said of the news: \u201cThe chancellor has, in part, listened to the concerns of business by making the Apprenticeship Levy more flexible. However, he needs to go much further.<\/p>\n

\u201cCurrently 10% of levy vouchers can be passed down through the supply chain from large firms to smaller firms and today, he increased this to 25%. This is important as in construction, it\u2019s the small firms that do the bulk of the training while the large firms don\u2019t tend to directly employ or train tradespeople. Since the Apprenticeship Levy was introduced last year, apprenticeship starts have fallen in the construction trades by more than 10%.<\/p>\n

\u201cGiven that the construction industry is already suffering from an acute skills shortage<\/a>, this is very worrying indeed. If the chancellor is serious about ensuring the levy has the desired effect, and increases meaningful training across all sectors, it should go further and make 100% of the vouchers transferable from large to small companies.\u201d<\/p>\n

Mark Farmer, chief executive of Cast consultancy<\/a> and the author of the \u2018Reform Or Die\u2019 report on the future of the construction industry, said Hammond\u2019s proposals were \u201cthe latest in a series of piecemeal and reactive modifications to the levy in gradual recognition that only 2% of UK employers pay the levy, but that training must happen in a much more diverse and SME-led supply chain, most of whom are not levy payers\u201d.<\/p>\n

Farmer said the new 25% cap of transferrable apprenticeship funds<\/a>, up from 10%, was still too low and the slow progress around agreeing new standards, assessment methods and the funding allocations of the levy \u201cprevented it being spent in the first place\u201d.<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

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