Employers split over plans to introduce apprenticeships levy

Nick Elvin

Employers are divided over the Government’s plans to introduce an apprenticeships levy, according to a new survey of large employers from the CIPD, the professional body for HR and people development.

The CIPD’s survey of 275 employers, conducted to inform its response to the Government consultation on the levy which closed last week, found that 39% were in favour of charging firms a levy in principle, 31% opposed it and a further 30% were undecided.

The apprenticeships levy is part of the Government’s plan to boost productivity and to encourage employers to invest more in their workforce training and development.

Thirty per cent of respondents believe the levy would encourage them to develop an apprenticeship programme to help build key skills, while a similar proportion (30%) think the levy would help increase the quantity of apprenticeships.

However, the survey also shows that almost a third (31%) of organisations think the levy would cause them to reduce their investment in other areas of workforce training and development. A further 22% believe the levy could encourage employers to accredit training they would be running anyway as apprenticeship schemes, while just one in five (20%) of respondents think the levy will drive up quality of apprenticeship schemes.

CIPD chief executive Peter Cheese said: “The Government has rightly focused on the need to increase the quantity and quality of apprenticeships in the UK and is hoping the levy will lead to increased investment by employers in these schemes. However, our survey suggests that boosting both numbers and quality at the same time will be a significant challenge.

“If the Government is serious about raising the quality of our apprenticeship system, it is important the levy is weighted towards increasing the number of apprenticeships at or above level 3.

“It’s also important the apprenticeships levy is not regarded as a solution in itself to the skills and productivity challenges facing the UK. Apprenticeships are important, but to ensure that people’s skills are developed and used effectively in the workplace, we also need to prioritise investment in organisations’ leadership and people management capability which underpins more strategic workforce investment.

“We need to balance the strong training and support that workers receive during an apprenticeship with lifelong skills development, to ensure that employees and businesses stay productive.”