Reward Strategy. Incoporating Payroll World.
Hello there,

You are viewing this article as a guest, please login or register to read more. 

75,000 apprenticeships at SMEs could be lost

The current apprenticeship levy policies could result in a reduction in the number of apprenticeships offered by SMEs, according to new research. 

TwitterLinkedInFacebook
The number of apprenticeship starts have fallen by a substantial 20%
The number of apprenticeship starts have fallen by a substantial 20%

Research from The Learning and Work Institute points out that, since the introduction of the apprenticeship levy in 2017, the number of apprenticeship starts have fallen by a substantial 20 percent.

 

The institute said there has been a growing trend for enrolling older and pre-established staff on higher level courses, which are more costly. This could mean that the apprenticeship budget is in deficit very soon, which, could, in turn, have a detrimental effect on the funding provided to smaller organisations, who are not eligible to pay the apprenticeship levy. There are fears that the funds available for those who do not pay the levy will be restricted as a result of a growing deficit within the budget.

 

The Learning and Work Institute states that the potential effect could be the loss of 75,000 apprenticeships at SMEs.

 

The initial assumption on which the apprenticeship levy was founded was that the larger organisations would not utilise their whole levy fund, so the remainder would be available for SMEs who did not pay the levy. This presumption was unfortunately incorrect, with larger organisations opting to use higher proportions of the funds available to them, and investing in the higher level, more expensive courses for their staff.

 

In order to address this issue and attempt to stop a reduction in the number of apprenticeships offered by SMEs, the institute has offered the following recommendations:

  • Investing an additional £150m per year for apprenticeships at SMEs;
  • Funding apprenticeships for 16 to 18-year olds from the education budget, rather than the apprenticeship levy, requiring an additional £400m per year;
  • Requiring employers or individuals to provide top-up funding for higher and degree level apprenticeships for workers aged 25 and over. This would require employers to provide 50 percent of the cost of apprenticeships at level four and five, and 75 percent of apprenticeships at level six and seven for this age group, from outside of their levy funds. This would reduce levy spending by around £318m per year.
TwitterLinkedInFacebook
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.

You might also like

The future of payroll: preparing for deserved investment

The future of payroll: preparing for deserved investment


75,000 apprenticeships at SMEs could be lost

75,000 apprenticeships at SMEs could be lost


Think tank calls for government to pay into mothers’ pensions

Think tank calls for government to pay into mothers’ pensions


Benefit Cosmetics on the importance of employee wellbeing 

Benefit Cosmetics on the importance of employee wellbeing 

LATEST PAYROLL AND REWARDS NEWS IN YOUR INBOX

Reward Strategy homepage
Reward Strategy RSS

Did you find our website useful?

Thank you for your input

Thank you for your feedback

reward-strategy.com - an online news and information service for the UK’s payroll, reward, pensions, benefits and HR sectors. reward-strategy.com is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Reward Strategy is committed to diversity in the workplace.
© Copyright Shard Financial Media Ltd