The CBI (news.cbi.org.uk) has joined the chorus of business groups and ‘think tanks’ calling on the Government to ‘radically re-think’ the Apprenticeship Levy, which is due to be introduced next April. Last week, Machinery Market reported (page 6) that the Higher Education Policy Institute believes the levy could damage employer-sponsored degrees.
The latest concerns about the scheme were expressed in a speech by CBI director general Carolyn Fairbairn, who said
that the Government has the opportunity to create a “once-in-a-generation revolution” in skills but is currently only likely to deliver another “once-in-an-administration shake-up.”
Speaking to an audience of business leaders in the City of London, Ms Fairbairn said: “Firms are passionate about apprenticeships, and it’s this passion that drives deep frustration over the levy plans, as they currently stand. The Government must take the time to draw on the vast experience of business to make sure that the levy works for everyone, rather than rushing out a poorly thought-through plan. This isn’t what businesses want, and we don’t believe it is what the Government wants either.”
Ms Fairbairn said that the CBI is calling for: a stronger role for the new Institute for Apprenticeships; more flexibility in how firms can spend the levy, including on existing training and high-quality support for apprentices; and assurances that the digital system which manages levy expenditure can “support the delivery of apprenticeship training in full — and from the start”.
She went on to say: “Firms across the UK are emphatic that tackling skills shortages is the only way to succeed and create prosperity. They want to create high-quality apprenticeships, and they’re ready to work with the Government to do this. However, as it stands, that’s not what the levy is doing. We need to change that, which is why we are calling for a ‘radical re-think’.”
On the Government’s target of having three million apprentices by 2020, Ms Fairbairn said: “As a nation, what outcome are we trying to achieve on skills? Business shares this goal to raise numbers, yet despite the Government’s good intentions, the target could have unintended consequences.
"What’s being counted is three million started apprenticeships, not three million qualified apprentices; there’s a big difference. Indeed, measuring success by the number of starts tells us little about whether the system is really delivering and could even drive the wrong outcomes.”