Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Education Secretary Challenges Big Firms’ Plea Over Apprentice Levy

by March 19, 2024
March 19, 2024
Education Secretary Challenges Big Firms’ Plea Over Apprentice Levy

Education Secretary Gillian Keegan has criticised large employers advocating for a shift in apprentice levy funds, highlighting potential repercussions for young apprenticeships.

Keegan’s remarks come amid lobbying efforts from major companies to utilise more of the £3.9 billion annual apprentice levy for up-skilling existing staff rather than investing in young apprentices. She warned that such a move would divert crucial funding from SMEs, which currently contribute around 30% of the 337,000 annual apprenticeship placements.

The apprentice levy, introduced in 2017, mandates all UK employers with a wage bill exceeding £3 million per year to allocate 0.5% of their pay bill (minus a £15,000 annual allowance) towards apprenticeships.

While some large retailers like Marks & Spencer, Superdrug, and the Co-operative Group have advocated for an overhaul of the apprentice levy, Keegan emphasized the potential negative impact on apprentice opportunities. She cautioned that allowing companies to redirect funds from apprenticeships to other forms of training could halve the number of available apprenticeships, hindering young people’s access to career opportunities.

Keegan’s concerns align with the government’s efforts to incentivize SMEs to offer more apprenticeships. Recent reforms include abolishing the 5% contribution requirement for SMEs funding apprenticeships for those under 22 and allocating £60 million in funding to support additional apprenticeship placements.

While these measures aim to bolster apprentice numbers, reactions from business groups have been mixed. While Martin McTague of the Federation of Small Businesses praised the initiatives as beneficial for SMEs, larger companies expressed dissatisfaction with the current levy system. Tom Ironside of the British Retail Consortium emphasized the need for meaningful reform to introduce greater flexibility in fund utilization.

Stephen Phipson of Make UK echoed calls for a skills revolution, stressing the importance of employer-driven reforms to the apprentice levy. He highlighted a concerning 42% drop in apprenticeship starts in engineering since 2017.

Corin Crane of the Coventry & Warwickshire Chamber of Commerce cited challenges in recruiting apprentices, attributing it partly to economic uncertainties and low apprentice pay rates. Official statistics reflect a decline in apprentice numbers since 2015, although completion rates have increased.

Keegan defended the decline, attributing it to efforts to improve apprenticeship quality and eliminate abuses of the system. She emphasized the government’s commitment to maintaining high standards in apprenticeship programs, considering them a cornerstone of the UK’s workforce development.

Read more:
Education Secretary Challenges Big Firms’ Plea Over Apprentice Levy

0
FacebookTwitterGoogle +Pinterest
previous post
How SMEs are adapting their recruitment approach to counter cost-of-living pressures in 2024
next post
UK Businesses Struggle to Keep Pace with Cyber Threats, warns Microsoft

You may also like

The growth of the smartphone apps business and...

January 31, 2023

Avoid These: 5 Web Design Mistakes that Hurt...

September 5, 2024

Aston Martin in discussions with bankers over debt...

February 13, 2024

Google launches new cybersecurity training to help UK...

June 7, 2023

How Businesses Can Stop Their Fleets Becoming a...

September 26, 2024

Business development to bottom line: Turning effort into...

October 23, 2024

Close Brothers sets aside £165m amid car loan...

February 12, 2025

Gatwick sees 7.7% passenger increase as short-haul demand...

August 23, 2024

WorkL Secures £2M Series A Funding from Calculus...

June 14, 2024

Folding bike pioneer Flit raises £1.2m to challenge...

February 19, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025
    • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

      June 28, 2025
    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025
    • Key GOP senator defects on crucial vote, imperiling Trump’s ‘big, beautiful bill’ in narrow majority

      June 28, 2025
    • Terror in Gaza: Hamas offers bounties to kill US and local aid workers, group says

      June 28, 2025
    • SCOOP: Blue state Republican could oppose Trump tax bill over Medicaid changes

      June 28, 2025

    Categories

    • Business (8,329)
    • Investing (2,081)
    • Politics (15,851)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved