Apprenticeship Levy Not Doing The Job

26th January 2018.

An apprenticeship levy that was introduced back in April 2017 has yet to increase the number of people signing up for trainee-ships, according to recent reports. Industry leaders are blaming the government for the scheme’s failure, as they had failed to act on mounting concerns about the extra costs and the complexities of the process. Trainee-ships can be found in all industries, from manufacturing and construction, to retail and administration. While we understand that this levy may be aggravating the patience of many of our members, its emphasis on education is important. Certain sectors like the construction industry are currently struggling with a skills gap where they cannot find people who have the right skills to do the job. If more companies encouraged apprenticeships and trainee-ships this would’t be the case. Particularly as more and more skilled EU workers depart our shores, it is important we encourage anyone to enhance their skills anyway they can.

The Department of Education has announced the recent levy has only created 114,000 apprenticeships for the first quarter of the 2017-18 academic year.

The Institute of Directors added that many employers were still struggling to comprehend how the system was meant to work.

Seamus Nevin, the IoD’s head of policy research insists the levy is the “right idea”, but the system is “ripe” for reform.”

The levy is a tax on large companies intended to pay for training at smaller companies.

Big firms hate the extra tax on their funding, and small firms find the system complicated and say the government has failed to provide enough approved courses for them to use.

It seems increasingly unlikely that the government can hit its target of three million new apprenticeships by 2020.

With skills gaps getting wider and wider, and wages getting lower and lower, finding skilled workers is becoming a bit of a strain. Finding workers who are just looking for their next paycheck is one thing, but finding a person eager to learn a skill on minimal pay, is another. While our managers and CEOs are recognised by the government and bear the brunt for the dips in industry, it is the trainee paralegals and the trainee bricklayers that will help us get through the next year. We encourage our members in such industries to be patient with the new system, and back up those demands for government intervention. However, if the levy is doing damage to your cash flow, the Credit Protection Association can offer immediate assistance with our debt collection and credit management products at hand. Please get in contact with a member of our team!