Published:
01 Mar 2021 The apprenticeship levy has now failed on every measure and needs to be reformed immediately, according to the CIPD.
The professional body for HR said it believes that under current rules the levy will undermine the investment in skills and economic recovery needed following the coronavirus pandemic.
In its assessment of the levy’s performance since its launch four years ago, the CIPD found employer investment in training has declined, and far fewer apprenticeships have gone to young people.
Total apprenticeship starts have fallen too from 494,900 in 2016/17 to just 322,500 in 2019/20.
The body is now urging government for reforms in its upcoming budget on Wednesday (3 March) which would convert the current system into a more flexible training levy.
Budget 2021: Rishi Sunak to inject £126m to boost traineeship scheme
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Budget 2021: Rishi Sunak to inject £126m to boost traineeship scheme
bbc.co.uk - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bbc.co.uk Daily Mail and Mail on Sunday newspapers.
How apprenticeships could play a key part in the post-Covid economic rebuild
Apprenticeship schemes have been cut back by the pandemic, but many employers say they plan to resume recruitment as soon as possible
The Institute for Apprenticeships and Technical Education has moved some assessments online in response to Covid. Photograph: blackCAT/Getty Images
The Institute for Apprenticeships and Technical Education has moved some assessments online in response to Covid. Photograph: blackCAT/Getty Images
JennyLittle
Tue 9 Feb 2021 14.30 EST
Last modified on Tue 9 Feb 2021 14.32 EST
When the coronavirus sent Britain into lockdown last March, John Collings had to tell half of his staff to stay at home. The boss of Online Lubricants, a commercial oils supplier based in Barking, Essex, furloughed 26 of his team, including two apprentices.