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Lifting the Lid on the Levy: Making the Apprenticeship Levy Work for Industry

Last Friday EEF published a new report - Lifting the Lid on the Levy: Making the Apprenticeship Levy work for industry which looks at the policy and external affairs aspects to the levy as well as providing practical guidance for employers.

Policy and representation:

The report is based on a survey of EEF's manufacturing members and has some interesting findings on the current, and potential, impact of the Apprenticeship Levy, which include:

  • The perception that the Levy is a tax has not been erased: over a third of manufacturers (34%) see no benefits to the scheme at all.
  • Warming up: a quarter of manufacturers (26%) think the Levy will increase the quality of apprenticeships – a quarter (26%) also think it could attract more young people into apprenticeships
  • Driving seat: a quarter of companies (26%) say the Levy will increase the responsiveness of providers to deliver relevant training – three in ten (29%) say they will be better able to buy the training their business really needs
  • Key concerns: three quarters of firms (75%) worry they won’t get back what they put in – others are concerned about cost (61%), timescale and uncertainty for the future.

EEF have made a number of recommendations to Government including:

  1. The Government should commission an independent, employer-led review of the implementation of the Levy and report by the end of 2018.
  2. The Government should amend the rules around connected companies so each company receives one allowance.
  3. The Government should review the current funding bands to ensure that the funding bands are high enough to cover the real cost of training, especially in considering Degree Apprenticeships in industries such as manufacturing.
  4. The amount to which a Levy paying employer can transfer unused digital funds should be increased from 10% to 50%
  5. The devolved administrations should publicly state how they will spend their proportion of the Levy, with manufacturers wanting a commitment for spend to be ring-fenced for skills and training in their sector.

You can read the full report here and read our overview blog here.

Practical information for employers:

Given the interest in this topic, we have also included in the report some practical steps, advice and guidance for employers including:

  • What are the core principles of an Apprenticeship?
  • Who can I spend my digital funds on?
  • What is the definition of a connected company?
  • How can I find out if I am connected?
  • An employer checklist on: what employers should be doing… before the Levy is introduced, before they register on the Digital Apprenticeship Service (DAS) and before they start spending their digital funds
  • How EEF can help

EEF are running Apprenticeship Levy seminars, so any interested employers should sign up here.

Social media: how you can get involved

Please do share the report and our blog. Below are some suggestions of what you may want to Tweet

34% of manufacturers see no benefit from the #ApprenticeshipLevy http://tinyurl.com/z37zzrs

46% of manufacturers will increase engineering apprentieships after #ApprenticeshipLevy

Over ½ manufacturers want more support in finding #apprenticeship standards & frameworks http://tinyurl.com/z37zzrs

How prepared are manufacturers for the new #ApprenticeshipLevy? http://tinyurl.com/z37zzrs

What support do manufacturer want to implement #ApperntieshipLevy? http://tinyurl.com/z37zzrs