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Posted By Apprenticeships Directory on 12/01/2018 in Apprenticeship Sector News Stories

CMI │Petra Wilton, Director of Strategy, Chartered Management Institute commenting on the CIPD’s recent report on apprenticeships:

CMI │Petra Wilton, Director of Strategy, Chartered Management Institute commenting on the CIPD’s recent report on apprenticeships:

CMI │Petra Wilton, Director of Strategy, Chartered Management Institute commenting on the CIPD’s recent report on apprenticeships:

“The question of whether the UK has an ‘apprenticeship’ or ‘training’ levy is a distraction from the key issue in this debate: how can the UK overcome its chronic underinvestment in employee training and development? It must be remembered that the Apprenticeship Levy was introduced to force UK businesses to make this investment, and deliver a globally competitive workforce.

“The Levy is bringing about this much-needed transformation in skills, but it will take time to embed and for all employers to realise its potential. At only eight months in, it is too early to call time on this intervention. 

“The criticism that far more apprenticeships are going to “well-qualified managers, meaning fewer are available to help young people” also needs to be addressed. In fact, historic under-investment in skills means that we are a nation of accidental managers.  Only 1 in 5 have had management training, with the workplaces that young people are seeking to join suffering from poor standards of leadership. Indeed, poor management is a key reason for the UK’s productivity being 21% lower than the rest of the G7.  New management apprenticeships are addressing this oversight and are delivering skills to both young people and existing managers that are needed for effective workplaces and economic growth.”

IT’S PRODUCTIVITY, NOT THE APPRENTICESHIP LEVY, THAT’S THE REAL PROBLEM


CMI’S PETRA WILTON SAYS THE APPRENTICESHIP LEVY SHOULD BE EMBRACED FOR ITS EFFORTS TO BOOST PRODUCTIVITY, NOT CRITICISED FOR SOME EARLY TEETHING ISSUES

The recently introduced Apprenticeship Levy has come in for criticism from certain sectors of UK Plc, the Telegraph has reported, with businesses complaining that “the funds raised do not cover training costs and the levy has, in effect, become just another business tax”.

The Telegraph’s Alan Tovey continued by saying that “some companies say the maximum allowance of £27,000 per apprentice does not cover the cost of complex or high-level apprenticeships, while others say they will never get out as much as they pay in”.

But, Petra Wilton, CMI’s director of strategy, said this assessment was unfair and pointed to the much greater cost to the UK’s economy of poor management and leadership.

“The Apprenticeship Levy is not the real tax on business  – low productivity is a far greater burden with poor management and leadership costing businesses £84bn each year,” she said. “The Apprenticeship Levy addresses a key market failure: businesses' systemic under investment in the world-class skills needed to compete internationally.

“It’s true - the extent of change and the skills transformation being ushered in by the Apprenticeship Levy will take time to embed.  And only eight months in, it’s far too early to call time on a much-needed intervention in the skills system.”

READ MORE: THREE CASE STUDIES OF HOW THE APPRENTICESHIP LEVY WILL HELP EMPLOYERS

Wilton did concede, however, that more needed to be done to make the Levy a greater success, and urged employers to make the most of the opportunities presented to them by the Apprenticeship Levy.

“The number of new starts is disappointing and there are clearly teething issues in developing the new Standards and simplifying new quality assurance processes,” she said. “But this should not be used to disguise the real progress we’ve already started seeing. Many employers are now identifying key higher level skills gaps in management, digital and engineering, and as a result the fastest growing new degree apprenticeships are across these areas.

“Since the introduction of the Levy, more than 18,500 people have started an apprenticeship – nearly half of which have been at intermediate or higher levels. The slow start reflects the need to do far more to raise awareness of the benefits of professional apprenticeship pathways and celebrate the early adopters.”

“Employers should now use the Levy to invest in both up-skilling existing employees, as well as bringing on the next generation, to ensure that we finally call time on the UK’s productivity gap that taxes us all,” she added.

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