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

Former Conservative business minister Anna Soubry says she...

October 12, 2023

Services sector shrinks for first time since lockdown

November 4, 2022

Vintage teddy bear sales soar amid Paddington Bear...

November 20, 2024

Big Technologies founder Sara Murray agrees to asset...

May 28, 2025

How Payday Loan Lenders Determine Your Eligibility: A...

September 26, 2024

Shrinking workforce limiting UK economic growth, MPs warn

April 21, 2023

Understanding the evolution of Guideline Daily Amounts in...

January 8, 2025

Sunak urged not to focus on cutting immigration...

December 13, 2022

10 sustainable travel stats that matter

August 16, 2022

Swallowing up rivals comes at a cost for...

March 2, 2023

    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

    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025
    • Tech ETFs are Leading Since April, but Another Group is Leading YTD

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,567)
    • Stocks (3,136)
    • 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