Firms should get expert help to make the apprenticeship levy work for them, says a training specialist.
Chris Wood, CEO of Develop Training Ltd (DTL), was commenting as a government inquiry prepares to hear views about the levy introduced in April last year. Many of those views are likely to be critical with some businesses complaining about red tape and branding the initiative a tax.
Wood said: “It was frustrating that the training sector was not consulted during the formation of the levy, but we have made great strides in understanding the opportunities, and we are already helping customers to make the levy work for them.
He added: “We understand the difficulties that businesses face, and it is good that they are having the opportunity to relay their frustrations to government. In the meantime, we encourage employers to get expert help to make the most of the situation. There are genuine opportunities to make the levy work, which go beyond traditional ideas of apprenticeships and into a much broader range of training, compliance and development programmes.”
The government’s education select committee launched an inquiry into apprenticeships and training in November, following a drop in the number of new apprentices. It is set to look at industry’s views on the levy, which was blamed by some commentators for the fall.
The levy requires all employers with an annual wage bill of £3m or more to pay 0.5 per cent of their staff costs into a fund, which is topped up by government, and from which firms can withdraw money to pay for apprenticeships. However, if the money is not withdrawn by the deadlines set, it goes into government coffers.