So what is it that attracts students to this more practical way of learning? It can’t simply be the lack of debtThe UK government recently announced plans to boost productivity by committing to an additional three million apprenticeship starts by 2020. In conjunction with this pledge, the Apprenticeship Levy came into force in 2017.
The levy, a new tax, will be used to fund the training of apprentices for employers with a pay bill of over £3 million a year (about 2% of UK employers).
The facts and figures
Recent reports suggest the number of apprentices starting new programmes have dropped. According to figures released by the Department for Education, 48,000 people began an apprenticeship between May and July 2017, compared to 117,000 who started apprenticeships between May and July 2016.
While some publications and organisations are blaming this significant decrease on the introduction of the Apprenticeship levy, the Department for Education believe it’s more broadly a by-product of onboarding a new funding process.
Despite an initial fall in numbers, there is still a chance for the scheme to succeed. For every £1 paid into the Apprentice Levy by an employer, that employer will have £1.10 to spend on apprenticeship training.
A win-win? The government expects the levy to raise £2.8bn in 2018 alone. For employers and recruiters, it’s an incentive and potential solution to the problem organisations and industries regularly face – how to attract and retain top talent.
Mixed reactions to the new regulations
In a recent interview with Michael Page, Simon Gott, Head of Learning and Development at Portakabin Group, suggested the initial reaction of employers to the new regulations was mixed.
He explained: “I’ve had many conversations with fellow professionals at various networking events and I have to say, I have noticed a tangible sense of trepidation and uncertainty. If I speak to some of my colleagues in the finance arena, I’ll often hear the groans and grumbles about ‘yet another tax to pay’”.
Gott continued: “I find myself trying to convince them why the levy is a positive move by the government and will help to improve skills across UK industries and in turn, begin to close the overall productivity gap between ourselves and many of our European counterparts.”
The recruiter, Michael Page, previously reported an increase in new job roles designed to maximise the benefits of the Apprenticeship Levy, including apprenticeships and graduate positions.
This is testament to the far-reaching nature of the legislation, beyond the more traditional apprenticeship schemes. If organisations see the Apprenticeship Levy as an opportunity, they could reap the rewards of a wider talent pool, upskilled employees and talent retention within the business.
Recruiters love this COMPLETE set of Accredited Recruitment & HR Training – View Training Brochure
