CIPD calls on government to delay apprenticeship levy

The Chartered Institute for Professional Development (CIPD) has called on the government to delay the introduction of the apprenticeship levy and overhaul the proposed system.

The calls come as the CIPD warns that many organisations are planning to ‘game’ the new system.

According to research conducted by the CIPD, 29 per cent of employers said that they would offset the costs of the levy by adapting existing training programmes so they can be accredited as apprenticeships.

Additionally, 36 per cent said that the 0.5 per cent charge on payrolls would force them to reduce investment in other areas of workforce development.

The levy is designed to help the government meet its target of creating three million apprenticeships by 2020, but the CIPD’s research found that just nine per cent of respondents expected to use the levy funding to create a new apprenticeship programme, wth 18 per cent saying it would be used to enhance programmes already in place.

Peter Cheese, chief executive of the CIPD, has warned that the levy could have ‘unintended consequences’ and take investment away from other valuable forms of training.

Instead, he has argued for an overhaul of the proposed system. He said: “We believe a much broader, more flexible training levy should be developed to ensure that the system is genuinely employer-owned and meets the skills requirements of organisations.

“This would enable employers to draw down levy funding, with appropriate criteria, for a wider range of training activities, as well as for apprenticeships.”