The apprenticeship levy could be a disaster
Manufacturers have a strong track record and a vested interest in providing quality apprenticeships in the UK. Which is why it’s worth listening when they say that there are serious flaws in the Government’s new apprenticeship levy that could derail the scheme when it is rolled-out.
In its current state the levy will be detrimental for both industry and government. We risk seeing a policy rushed in that is doomed to fail, ultimately causing long-term damage to the drive to boost apprenticeships in the UK. That is not in our sector’s best interests.
Thinking time
We are not saying never – we’re simply saying not yet. We want the government to delay implementation of the levy from April next year until September 2017 at the earliest, to allow more time to get the implementation of this fundamental reform right.
While 70 per cent of manufacturers support the government’s drive to deliver a greater number of apprenticeships, just 18 per cent think that the apprenticeship levy as it currently stands will help deliver this. The message is clear — the Government is right to prioritise apprenticeships, but manufacturers are unconvinced that the levy is the right tool to use.
Read more: EEF clashes with government over apprenticeship levy
There are issues over its simplicity and accessibility. Firms want it to succeed, but already over half think it will simply become another cost burden on business.
Much of my time is now spent trying to explain the levy to worried firms. It’s a complicated puzzle that we’re all struggling to fit together and this is breeding scepticism, cynicism and a potential rift between industry and Government where none needs to exist.
Slow and steady
Rather than ploughing on, we want to see government join industry back at the drawing board. Businesses want this policy to fly, so put the brakes on and allow time to jointly tackle these concerns.
Read more: Apprentices edge out graduates
And if that’s not enough of a sweetener, a delay would also better align to manufacturers’ apprentice recruitment cycles. This means employers would be more likely to spend what they have in their pot.
It would also mean avoiding hitting employers in the same month (April 2017) as the new national minimum wage and national living wage rises come into force and when they will need to provide the first data snapshot for gender pay reporting too.
Read more: Everything you need to know about the apprenticeship levy
Apprenticeships are vital for our sector – over 70 per cent of EEF members currently offer them – so it’s massively important we get this right. That means taking the time to build a swift, sturdy and simple system that businesses can rely on and trust. It’s clear we’re not there yet and a further six months or more in development could make all the difference between whether this flagship scheme succeeds or fails.