Published on 1 June UVAC’s most recent white paper, Options for the Future of the Apprenticeship Levy or New Growth and Skills Levy sets out the future of the apprenticeship levy and what a future government should consider to maintain the volume and quality of delivery of higher-level skills.

 

One major casualty of radical reform or abolishment of the current apprenticeship levy scheme will unfortunately be public services, if funding to higher and degree level apprenticeships is compromised.

 

The potential election of a new government this summer, misconceptions around the amount of levy funds retained by the Treasury annually and increasing pressure from big business to scrap it completely has meant its future is uncertain.

 

This uncertainty poses a threat to the delivery of level 6 and 7 apprenticeships which are so integral to recruiting and training new police constables and registered nurses through to social workers and teachers and the quality of public services delivered. Putting levy funding at risk across public sector professions and occupations would also hinder social mobility and widen the skills shortages already felt in vital areas such as policing and nursing.

 

The levy was first introduced in 2017 and is funded by a 0.5% compulsory contribution by employers with payroll costs of over £3m. It was met with some concerns especially from levy-paying organisations, regarded as another form of business taxation and has recently come under heavy scrutiny.

 

One possible reform, UVAC recommends in the paper, is the ring fencing of public sector levy payments. This would ensure that employers, such as the NHS, would have far greater control over where it spends its payments, regardless of whether restrictions were introduced for employers in the private sector.

 

Whether it’s reform of the current levy system or transitioning to Labour’s proposed Growth and Skills alternative, key consideration needs to be given to how apprenticeship funding is spent within the public sector, to ensure it can attract, train and retain the best talent.

 

Download the White Paper HERE

 

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