Apprenticeship Levy found to be underperforming

The Local Government Association (LGA) has warned that in the seven months since the launch of the government’s Apprenticeship Levy, there have been 131,500 fewer apprenticeships.

The figures indicate 195,200 apprenticeship starts between April and November 2017, representing a 40 per cent drop compared with the 326,700 starts in the corresponding seven months in 2016.

The LGA has warned that significant changes to the Apprenticeship Levy are necessary if the policy is to achieve its potential. Highlighting the complexity of the system and the unavailability of key apprenticeship standards as the key issues that need to be addressed to help increase the number of starts, the association argues that local areas need to be allowed to pool Levy contributions and have greater flexibility on how they are used.

Furthermore, council leaders have suggested that all Levy underspend should go back to the local areas where it is raised, rather than being handed back to the Treasury. Discussing devolution, the LGA says that the apprenticeships system should be fully devolved, initially to combined authorities but eventually to all parts of the country, while all non-Levy apprenticeship funding should be devolved to local areas so they can support businesses and promote the levy locally to employers.

Sir Richard Leese, chair of the LGA’s City Regions Board, said: “These figures are an early warning that the Apprenticeship Levy must be improved if it is to deliver the right training at the right time both for employers and for those wishing to pursue an apprenticeship. It is encouraging that the government will review the policy, and recognises the need to work in partnership to achieve the improvements needed.

“Combined authorities and councils fully support the ambitious target of creating three million apprenticeships by 2020 but could do far more if the government allowed them to pool and plan local provision. Devolving apprenticeship funding to the local areas in which they are used will allow combined authorities and councils, schools, colleges and employers to work together to help people get the skills they need to progress in work, and supply businesses with the right skills at the right time to help local economies grow.”