Apprenticeship levy isn’t adding value to training, says employers

Over half of employers (53 per cent) who are paying the apprenticeship levy would like to see it replaced with a training version instead.

Despite 46 per cent of levy-paying employers believing that the tax will help them to relaunch current training to claim back the allowance, one in ten said it will make little or no difference to the training they offer.

Data found through the CIPD survey of more than 1,000 employers revealed that 46 per cent of levy-payers will alter their training offering to meet the new regulations, reports HR Magazine.

“Our research shows that the straitjacket of the apprenticeship levy is forcing many firms to re-badge a lot of their existing training as apprenticeships, as they seek to claw back the levy they pay,” said Lizzie Crowley, skills advisor at the CIPD.

“In many instances this is not adding any additional value and is creating a lot of additional bureaucracy and cost. Apprenticeships are extremely important, but other forms of training are equally valuable and often more flexible and better-suited to the needs of organisations.”

The findings also followed government figures that showed a decline in the number of apprenticeship starts, with just 48,000 starts between May and July 2017 (a 59 per cent drop compared to the same period in 2016).

“The government needs to seriously review the levy to ensure it is flexible enough to respond to employers’ needs and to drive the greater investment in high-quality training and workplace skills needed to boost UK productivity,” Crowley added.

Image source: HR Magazine