AELP Statement on Apprenticeship Levy consultation

“The launch of a full consultation on the levy is a very sensible move given that we have already drawn attention to concerns which relate to the quality of the apprenticeship programme being possibly put at risk.  The document seems mindful that there are risks involved and the government is seeking to address them, which we welcome.

If the aim is to introduce the levy in 2017 to coincide the majority of the new apprenticeship standards, this may be too early and AELP would rather that employers and providers can build more capacity into the system over the next three or four years before the levy starts. 

It’s not clear yet how much of the cost of the apprenticeship programme the government wants to cover from the levy but the consultation is asking whether top-ups for individual employer’s voucher accounts need an annual limit.  This is a key question in the context of the 3 million target.

BIS has briefed that the levy will only be used for large employers’ programmes, so it is important that we find a solution to how SMEs will be funded for their apprenticeships.  The consultation remains committed to the principle that they should have to make a cash contribution and while AELP has always supported more employer contributions, we do not believe that they should be managed through mandatory cash contributions.  An employer meets the vast majority of the cost of the programme already through salaries and other training costs, so we feel the government should set out the rate at which it is prepared to subsidise the full cost of apprenticeships by age and standard.“

It’s absent from this announcement and therefore we look forward to the government saying more on how they will encourage government departments and public sector organisations to employ more apprentices in line with previously stated commitments.”

Link to AELP QA document on the levy: http://www.aelp.org.uk/news/submissions/details/aelp-briefing-paper-no29-the-apprenticeship-levy-q/