A recent survey published by the British Chambers of Commerce (BCC) in conjunction with Middlesex University London, showed that the majority of business in their sample of 1,400 did not expect to recoup the money from levy payments.
Around 56% of employers did not expect to recoup the costs, with only a third (36 per cent) expecting to recover all, or most, of their payments.
The research also highlighted that of those asked two-thirds of the non-levy payers (who were eligible to apply for funding) two thirds (66 per cent) had either not taken any direct action to use the funds or did not know about them.
Is more support needed?
“For many businesses that pay the apprenticeship levy, it can feel like an additional employment tax, much of which they are unable to recover, and one that is deflecting training budgets away from other important training needs,” she said. “Firms need greater flexibility on how they can use their levy monies and a system that is fully operational as quickly as possible, that is simple and efficient, and that enables them to access good-quality training.”Jane Gratton, head of business environment and skills at the British Chamber of Commerce
The survey also found that a quarter (23 per cent) of levy-paying organisations still didn’t understand how the levy worked or know how their company should respond to it, reflecting findings from previous surveys that have revealed high levels of confusion among employers.
The findings reinforce the need for clearer guidance and support for businesses wanting to utilise the Apprenticeship Levy. Firms, both above and below the levy threshold, are uncertain about how to use the funds to find and train the skills they need, undermining the purpose of the system.
A spokesperson from the Department for Education said: “We want all employers to understand the benefits that high-quality apprenticeships and the apprenticeship levy can bring them. That is why we will continue to work with employers and training providers, showing them how much they will pay and how they could use their funds for training.
“The apprenticeship reforms put control back into the hands of employers but we know there will be a period of adjustment while employers understand better what the reforms can do for their business. Employers will also need time to plan ahead to maximise the opportunities that apprenticeships can bring.”
Visit the BCC website for more information
Next steps:
- Read more news from Youth Employment UK
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- Find out more about our Employability Skills Review here
