Government Unveils Apprenticeships Plan

PRIME Minister David Cameron has unveiled radical plans to increase the number of quality apprenticeships across England – from nuclear engineers to tailors and butchers.

He added: “With little detail of the level of the levy, who will be required to pay it and how much government will give back in return, manufacturers have a right to remain sceptical that the levy will create the three million additional quality apprenticeships that we all wish to see”.

From the start of next month bids for all contracts worth more than £10 million will have to demonstrate a clear commitment to apprenticeships.

“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”, he stated.

“Apprenticeship schemes can play a part in meeting important ambitions to boost skills and drive-up productivity”.

He wants the levy to help create three million apprenticeships across the country. Ministers have also launched a consultation on the implementation of the apprenticeship levy, first set out in the Summer Budget, which will be charged on large firms.

Levies on businesses are already used to finance apprenticeships in more than 50 countries, including France, Netherlands, Denmark and South Korea, but the amount that UK businesses have invested in training has fallen consistently over the last 20 years.

In a 2012 survey of employers by the Department for Business, Innovation and Skills, almost 58% of employers said they would no longer train apprentices if a levy was imposed on them.

The British Chambers of Commerce (BCC) welcomed the announcement.

“But for apprenticeships to take hold and become established, the focus should be on quality – not hitting an arbitrary figure”.

“Apprenticeships need to be high quality and linked to the needs of businesses and learners”, he said.

Alex Meikle, director of employment and skills at the Electrical Contractors Association (ECA), said: “We recognise the pressing need for the whole of industry to get behind the drive to increase apprenticeships”.

“Government policy is now too focused on major employers, but equal effort ought to be put on encouraging and supporting smaller businesses to offer apprenticeships”, Mr Longworth said.