Does the Apprenticeship Levy need fixing?

As the levy celebrates its first birthday in April, we take a look at some of the teething problems it has faced and ways in which it can be successfully leveraged. One of the government’s flagship skills policies, the Apprenticeship Levy, celebrates its first birthday in April. But despite the great hopes at the launch, […]

As the levy celebrates its first birthday in April, we take a look at some of the teething problems it has faced and ways in which it can be successfully leveraged.

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One of the government’s flagship skills policies, the Apprenticeship Levy, celebrates its first birthday in April. But despite the great hopes at the launch, the programme has yet to find much love from businesses – indeed a growing number of corporates are complaining that the structure and administration of the levy are proving counterproductive.

When skills minister Nick Boles launched the levy in April, much was made of the impact it would have on investment levels in skills training across a range of sectors.

Boles recently told FE Week: “I’ve always been quite interested about the idea of hypothecated taxation and whether you can get greater acceptance on the part of people paying the tax if they know what it’s going towards.”

“Politically, it fell on the very fertile ground because the chancellor and the PM felt that, in a sense, this was the time to cash in our chips with business.”

“So when I presented the idea of the levy to George [Osborne] first, I could see, immediately, his eyes lit up. He thought, ‘now that’s great’ because it solves how we get the three million and how we pay for it.”

First seen here.




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