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Two-fifths of businesses do not understand apprenticeship levy, survey finds

Two-fifths of businesses do not understand apprenticeship levy, survey finds

'The government needs to step up its communication to business', according to the British Chambers of Commerce.

Almost 40 per cent of business leaders have no understanding of the apprenticeship levy, a survey by the British Chambers of Commerce (BCC) has found.

According to the survey, which was carried out in partnership with Middlesex University, 39 per cent of over 1,600 business leaders do not understand, or hadn’t heard of, the apprenticeship levy – just six months before it is due to be introduced.

Furthermore, half of businesses (51 per cent) do not understand how the levy will work above or below the £3 million pay bill threshold – while just one in ten businesses (11 per cent) believed the levy would increase their recruitment of apprentices. Only 26 per cent of businesses expect to recover all or more of their levy payment, suggesting that for the majority of businesses the apprenticeship levy is seen as a tax.

'The government need to step up communication'

Marcus Mason, head of education and skills at the BCC, said: “Firms value apprenticeships as way of developing skills and increasing productivity. However, with just six months to go until the levy is introduced, our research shows the government needs to step up its communication to business.

“The government needs to ensure that businesses understand how they could benefit from the reforms, because if it just feels like yet another tax then then the policy will have failed. Devolved administrations also need to provide a guarantee that the money raised is ring-fenced and kept for training.”

David Williams, director of corporate engagement at Middlesex University, said: “It is really important that government communicates to businesses the value of the levy in terms of its use to drive up the quality of on-the-job training and development."

Article courtesy of TES www.tec.com

 

 

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