The Government has ignored calls to reform the failing Apprenticeship Levy, despite business and council leaders pushing for change.
Just days after Highways revealed that a tiny fraction of the levy's income has been recouped for apprenticeships and training, despite it coming up to its first anniversary, the Institute of Directors released a survey revealing that business leaders hold the levy in scant regard and many don't even plan to claim from it viewing it simply as a tax.
On top of this it has been revealed that the number of apprenticeships has actually gone down since the launch of the Apprenticeship Levy last year.
Highways also revealed that companies in our sector cannot even claim against highways maintenance training as the Government has yet to approve these training courses, even though there is a rolling 24-month deadline to recoup any cash paid into the Levy accounts.
The Local Government Association has also highlighted this 24-month deadline as a concern.
Labour has now weighed into the debate calling the Levy 'shambolic' and calling for the Government to listen to those arguing for change.
Gordon Marsden MP, the shadow further education minister, told Highways: 'The Government’s shambolic introduction of the Apprenticeship Levy has led to starts going in to free fall, yet ministers keep their heads buried in the sand, refusing to take any steps to fix it.
'Ministers have left SMEs with a non-levy tendering process that has been inconsistent and illogical, and are doing nothing to ensure funding goes where it is most needed.
'It is past time that the Government realised their policies aren’t working, and actually listened to those who are delivering apprenticeships on how they can end the decline in starts.'
Despite all this, the Government appears to have refused to concede any ground. When asked by Highways if it would consider abandoning or reforming the levy, including extending the 24-month deadline to recoup funds, we recieved a statement from the apprenticeships and skills minister, Anne Milton.
She said: 'We want to see more people doing an apprenticeship with all the opportunities it provides, however it’s important not to sacrifice quality for quantity. So I’m pleased to see an increase in people starting apprenticeships designed under our higher-quality standards, which we are developing with businesses so those programmes meet the needs of employers and apprentices. We’ve also seen a big jump in higher level apprenticeships which can lead to a range of exciting, highly skilled jobs.
'Our reforms have fundamentally changed what apprenticeships are, and the long-term opportunities they can provide. The apprenticeship levy is an important part of these changes to raise the quality of apprenticeships in this country, creating long-term, sustainable investment in training and education. Nearly 60% of people starting on the new apprenticeship standards are levy supported, showing that levy payers are working well with the new system.'
