The government is consulting on plans to introduce an apprenticeship levy for larger businesses, to be collected via PAYE, as part of a package of measures designed to boost apprenticeship numbers and drive up the quality of courses offered to young people entering the workforce
Employers are being asked for their views on the introduction of the apprenticeship levy, which is set to be introduced in April 2017. Under the proposed approach, employers who put in funds will have direct spending power over it.
Prime minister 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.’
In addition, from 1 September 2015, all bids for government contracts worth more than £10m will be required to demonstrate a clear commitment to apprenticeships. In particular, employers’ bids will be reviewed in line with best practice for the number of apprentices that they expect to support.
Central government departments, their executive agencies and non-departmental public bodies will then be required to assess these pledges alongside other relevant elements of the contract, including cost. The successful bidder will then have its agreed apprenticeship numbers written into the contract schedule.
The move is aimed at widening the scope of businesses offering apprenticeships, and with more than £50bn a year spent on procurement contracts, the government says it will provide a significant boost in apprenticeship numbers.
A new set of ‘industry standards’ is being introduced in order to drive up the quality of apprenticeships. So far 59 new apprenticeship standards have been developed by Trailblazer groups of employers and businesses in professions including nuclear engineers, fashion assistants, live event technicians, personal trainers and welders.
The apprenticeship levy consultation is here
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