Search

How can we help?

Icon

Does government face ‘steep learning curve’ on apprenticeships?

As reported previously, in April this year the apprenticeship levy came into force. This introduced a 0.5% levy on employers with payrolls over £3million. The aim is to raise £3bn annually for four years to fund apprenticeship places.

However recently announced Department of Education figures have put the target of 3 million apprenticeships by 2020 in doubt. Instead of an increase in the number of apprenticeships, the number starting an apprenticeship in the summer of 2017 was only 48,000, less than half the 117,000 who started in 2016.

Critics have blamed poor implementation of the plan with employers struggling to access funding and understand the complex rules. Only 2% of firms are large enough to be liable to pay the levy but smaller firms that employ between 50 and 200 staff partaking in the scheme have been put off by the new obligation to release their apprentices for one day a week off-site training and to contribute 10% of these training costs.

One thing’s for sure, if the figures don’t increase soon the Government will need to reconsider how it will meet its aim of 3 million apprenticeship starts in England by 2020.

The aim is to raise £3bn annually for four years to fund apprenticeship places.

Critics have blamed poor implementation of the plan with employers struggling to access funding and understand the complex rules. Only 2% of firms are large enough to be liable to pay the levy but smaller firms that employ between 50 and 200 staff partaking in the scheme have been put off by the new obligation to release their apprentices for one day a week off-site training and to contribute 10% of these training costs.

One thing’s for sure, if the figures don’t increase soon the Government will need to reconsider how it will meet its aim of 3 million apprenticeship starts in England by 2020.

About this article

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

About this article

Read, listen and watch our latest insights

art
  • 08 May 2025
  • Commercial Real Estate

Taking a commercial lease: Why are Heads of Terms important?

Heads of Terms (or HoTs for short) are a document that sets out the parties’ agreement in respect of the main terms on which the lease is to be entered into.

art
  • 08 May 2025
  • Employment

Statutory Sick Pay Scheme changes: how can employers prepare for such changes?

The government has recently changed the Statutory Sick Pay provisions; it is anticipated that such changes will ‘help people to stay in work and grow the economy’.

Pub
  • 07 May 2025
  • Corporate and M&A

Thinking of exiting your business? Part 1

In the first part of this three-part series, we explore why planning your exit strategy early can shape the way you build, grow, and eventually sell your business for maximum value. From mindset to strategy, we unpack how thinking about the end from the beginning can lead to smarter decisions and better outcomes.

Pub
  • 07 May 2025
  • Immigration

UK Immigration: Essential update for employers

The UK’s immigration system will see major changes in 2025. Watch our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business.

art
  • 06 May 2025
  • Corporate and M&A

Can a disclosure letter give rise to a misrepresentation claim?

Provided by a seller to a buyer, a disclosure letter is an important element in any business sale or purchase transaction.

art
  • 02 May 2025
  • Employment

Sex, Gender and the Law: What the Supreme Court’s Recent Ruling Means for Employers

The recent UK Supreme Court decision in For Women Scotland Ltd v The Scottish Ministers  UKSC 16 has generated significant attention, but for most employers, we would argue that its practical impact is relatively limited—at least for now.