Lifting the Lid on the Levy: Making the Apprenticeship Levy Work for Industry

PUBLISHED 03 Mar 2017, 0:01


The new Apprenticeship Levy is about to ‘go live’ this April, but EEF’s report warns that it is still being viewed by many manufacturers as a tax on business, with many more firms potentially falling into scope than previously expected. And, while the manufacturing sector has warmed to some of the Levy’s perceived benefits, still over a third of manufacturers (34%) claim to see no benefits to the scheme at all.

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  • Warming up: a quarter of manufacturers (26%) think the Levy will increase the quality of apprenticeships – a quarter (26%) also think it could attract more young people into apprenticeships
  • Driving seat: a quarter of companies (26%) say the Levy will increase the responsiveness of providers to deliver relevant training – three in ten (29%) say they will be better able to buy the training their business really needs
  • Key concerns: three quarters of firms (75%) worry they won’t get back what they put in – others are concerned about cost (61%), timescale for implementation (50%) and uncertainty about future rule and rate changes (44%)
  • Sticking point: manufacturers operating across the UK with employees in Scotland, Wales or Northern Ireland will lose out on funding because of an incompatibility between the Levy (a tax) and the UK’s devolved skills policy
  • EEF recommends an independent employer-led review of the implementation and roll-out of the Levy by the end of 2018 amidst concerns about its viability and long-term sustainability.

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