Employers across the country will today be asked for their views on the introduction of an apprenticeship levy – set to be introduced in 2017 and designed to increase investment in training and apprenticeships.
Other steps outlined today that form part of the Government’s pledge to support 3 million apprenticeships by 2020, include a requirement to take a company’s apprenticeship offer into account when awarding large government contracts and publishing new ‘industry standards’ so that apprentices have the skills that companies need.
Also today, the Transport Secretary Patrick McLoughlin announced an ambition to boost apprenticeships across the road and rail industry – pledging 30,000 apprenticeship places in the sector during the lifetime of this Parliament, with help from a transport strategy led by Terry Morgan, Chairman of Crossrail.
This builds on the 2.3 million apprenticeships created under the last parliament to make sure that young people have the skills and expertise that employers demand.
Speaking about the plans David Cameron said: “The greatest asset any employer has is their workforce. And by investing in them, they are investing in the success and future of their business.
“As a One Nation government, we are committed to supporting three million quality apprenticeships over the next five years – to help strengthen our economy, deliver the skills that employers need and give millions more hardworking people financial security and a brighter future.”
Skills Minister Nick Boles said: “Skilled people are the lifeblood of a strong economy but for too long UK businesses have invested too little in developing their employees’ skills to meet the demands of a competitive, global market. The apprenticeship levy will ensure that businesses invest in skills and training, and will act as a much needed shot in the arm for the country’s productivity.”
Commenting on the announcement, John Longworth, Director General at the British Chambers of Commerce said: “It is right that the Government is seeking to engage businesses and consult on the introduction of an apprenticeship levy to make sure this policy is properly thought-through.
“Apprenticeship schemes can play a part in meeting important ambitions to boost skills and drive-up productivity. But for apprenticeships to take hold and become established, the focus should be on quality – not hitting an arbitrary figure. The conveyor belt model is not what business wants to see.
“If the quality is there, the demand, from employers and potential apprentices, will follow.
“BCC research shows that greater engagement with smaller businesses is needed to increase apprenticeship take-up. Government policy is currently too focused on major employers, but equal effort ought to be put on encouraging and supporting smaller businesses to offer apprenticeships.”
