Apprenticeship Levy is a car crash waiting to happen say manufacturers
THE Government must delay launching the Apprenticeship Levy until at least September next year, manufacturers have said.
The call comes as new research claims to show that firms have grave concerns about the scheme’s design and implementation.
The EEF said misgivings were so strong that just 1% manufacturers supported the levy’s roll out in its present guise, with the majority believing the scheme looks set to fail. Almost three quarters (72%) of manufacturers want the scheme redesigned so it is fit for purpose.
The manufacturers’ organisation said a delay would enable serious flaws to be remedied and a ‘looming car crash’ avoided.
More encouraging for the Government is that 70% of firms are in favour of increasing the number of apprenticeships available, provided the flaws in what is being proposed can be ironed out.
Less encouraging is that just 18% of firms believe the Apprenticeship Levy is the mechanism for achieving this.
EEF said the findings tended to suggest that the rush to introducing the levy in April next year would be a detrimental step and one that could potentially prove detrimental for both industry and Government, and cause long-term damage to the drive to boost apprenticeships in the UK.
For the scheme to work, business says the levy must be simple to administer (92%), easy to understand (89%) and offer easy access to the funding (79%). Instead firms find it confusing (53%), overly complicated (49%) and think it will simply become another cost burden on business (54%).
The findings also show that fairness and transparency should be fundamental to how the scheme is set up – almost three quarters of firms (73%) say it needs to be fair in order to work, while half (50%) say it must be open to public scrutiny.
The EEF said that worryingly, the Government had claimed that firms would be able to get more out of the scheme than they put in. However, it said just 11% of companies currently had faith in that claim.
Currently, less than a third of companies (31%) think that the levy will prove to be a game changer for apprenticeships in the UK.
Tim Thomas, Director of Employment and Skills Policy at EEF, said: “The headlong rush to bring this levy to market has left little time to iron out some significant wrinkles and get responses to industry’s unanswered questions.
“As a result, firms can see serious flaws that could sink this policy at launch. This is in nobody’s interests, which is why we’re recommending a delay to buy us all enough time to avoid the looming car crash.”
He said manufacturers remained highly committed to providing quality apprenticeships. They are supportive of the principles behind the Apprenticeship Levy, but were ‘dismayed’ at the way it is being put into practice, he added.
“The fact that just 1% of firms want to see the levy go into place in its current guise is pretty telling. Companies can see issues over clarity, simplicity and timing, along with many other concerns. As a result a large majority want to see the levy delayed until business and Government are satisfied that it’s fit-for-purpose,” he said.
