Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Acknowledged
In written evidence, several organisations raised concerns about the apprenticeship levy, and suggested that reforms...
Conclusion
In written evidence, several organisations raised concerns about the apprenticeship levy, and suggested that reforms to the levy would improve the training opportunities available. The British Retail Consortium suggested that employers should be permitted to spend levy funds on high-quality shorter courses, including functional skills training, 25 Q 42 ; C&AG’s Report, paras 3.18, 4.2 26 Qq 32, 56–58 27 C&AG’s Report, paras 2.14, 2.16 28 C&AG’s Report, para 4.12 29 Qq 48–49 14 Developing workforce skills for a strong economy where a full 12-month apprenticeship was not necessary.30 Similarly, Heathrow Airport Ltd suggested that employers should be able to spend their levy contributions on modular courses, and that levy funds should sometimes be unlocked to address time-limited labour shortages, such as the HGV driver shortage.31 City & Guilds argued that there should be a broader, more flexible skills levy, with a ringfenced commitment to apprenticeships, to better support employers and job seekers.32 DfE accepted that employers had made some reasonable requests about making sure the apprenticeship system was properly responsive to their needs. It explained that it had made some changes to make the programme more flexible – for example, by introducing flexi-job apprenticeships for industries where people often do their training through multiple employers.33 Colleges
Government Response Summary
The government recognises the levels of participation of small and medium enterprises (SMEs) in the skills system needs to increase in order to realise the potential of government skills reforms and is making apprenticeships more flexible with new flexi-job apprenticeships, front-loaded training and accelerated apprenticeships.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation. Target implementation date: June 2023 17 4.2 Employer investment in training has been declining for over a decade. The government is clear that employers play a key part in the skills system, and it is important for the country’s productivity and skills gaps that this decline is reversed. The department is already working to consider the evidence base around declining employer investment in training and potential options to support increased investment. 4.3 In particular, the government recognises the levels of participation of small and medium enterprises (SMEs) in the skills system needs to increase in order to realise the potential of government skills reforms. 4.4 The department is committed to ensuring that Apprenticeships and Skills Bootcamps play a key part of the skills landscape, providing employers with the skilled workforce they need for the future. 4.5 The department is making apprenticeships more flexible with new flexi-job apprenticeships, front-loaded training and accelerated apprenticeships so they are accessible to employers in all sectors and more individuals can access them. The department will work to continue developing the programme and its effectiveness for employers.