Apprenticeship levy leaves managers in the dark

by PM Today Staff / 1/31/2018 4:21:52 PM

The majority of business people in the UK are either confused by or sceptical of the Apprenticeship Levy and its benefits, a study by CIPD course providers DPG has found. 

DPG said the study highlights a desperate need for the government to put more effort into promoting and demystifying the levy, particularly if it is to hit its 2020 target of 3 million new apprenticeships. According to the most recent figures, the scheme has actually seen a significant year-on-year drop.

The research found that a problem of awareness and perception lay at the heart of the levy’s poor impact.

Some 27% of UK managers didn’t see the benefit of offering apprenticeships, while a further 17% didn’t see the point of them at all.

Almost all respondents, 93%, said they won’t be making full use of the levy, with 49% saying outright they wouldn’t be using it and 44% having no idea if they would. Nearly a year into the levy’s introduction, this reflects either an unattractive incentive or poor communication and implementation of the scheme.

It also has a problem with perceived scope. Some 43% stated that they wouldn’t be using the levy because there were no apprenticeships available for their industry. In fact, there are many business areas that the levy can be spent on, such as HR, IT, finance, management training, marketing, and design.

Paul Drew, Managing Director at DPG, said “These findings certainly highlight the need for a more focused approach to communicating the levy and its benefits. Gone are the days where apprenticeships were largely for school leavers and manual jobs, but sadly it appears that business perceptions haven’t quite caught up.

“The great range of business skills that can be developed through apprenticeships is a really positive thing and they can bring positive change for all sorts of businesses. The problem is that the government needs to make this more obvious and needs to make it more about the skills and benefits than about the money itself.

“Making more of a drive towards selling apprenticeships and their benefits is the way to go. They can be incredibly enriching not just when it comes to increasing in-house skills, but also on a personal fulfilment level for employees. Happy workers can be 12% more productive, so in the end it can pay dividends.”


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