Labour to put ‘businesses in the driving seat’ with reformed apprenticeship levy

Labour has restated its agreement to reform the present apprenticeship levy, promising corporations extra flexibility about how they spend govt cash.

Bridget Phillipson, the shade training secretary, stated {that a} fresh expansion and talents levy would give companies “greater flexibility to invest in training courses that meet their skills needs, turbocharging investment in skills for the future”. She stated that companies are “crying out for help to tackle skills shortages”.

The announcement comes days then Labour was once observable dating bosses, asking them to claim their assistance for the reformed levy, consistent with Sky Information.

On Tuesday, a people letter in assistance of the celebration which 120 corporate chiefs signed brought about a row over Labour’s declare to be the “party of business”, then some signatories had been allegedly related to dormant corporations.

Ms Phillipson stated: “Businesses are crying out for help to tackle skills shortages, so Labour will give them the flexibility needed to create skills training opportunities and drive economic growth through a growth and skills levy.

“Unlike the Tories’ botched apprenticeships levy which has seen training opportunities plummet, Labour will put businesses in the driving seat of creating the opportunities people need to get on in work.

“The choice on 4th July is between a Conservative Party that has given up on upskilling the nation and Labour that will see in a golden age in lifelong learning so that everyone can get on and fire the growth our economy needs.”

In step with govt figures, the selection of apprenticeship begins dropped between 2021-22 and 2022-23 – from 349,190 to 337,140.

However the untouched figures masking August 2023 till January 2024 suggests the selection of apprenticeship begins is recuperating – up by way of 2.5 in keeping with cent at the similar length the former month.

Labour has pointed to a shed in additional training and talents participation, the place Area for Training figures display a gentle fade between 2017-18 and 2020-21 – from 2.18 million contributors to one.64 million. Participation has risen to one.82 million by way of 2022-23.

The reformed levy would allow corporations to spend as much as 50 in keeping with cent in their levy contributions on “approved non-apprenticeship training”, with a minimum of 50 in keeping with cent reserved for apprenticeships.

The licensed {qualifications} may come with modular lessons in Labour’s business technique “priority areas” – together with virtual and inexperienced abilities – or pre-apprenticeship coaching, consistent with the Labour Birthday party.

Onward, a conservative assume tank, revealed a file into the coverage previous this occasion which instructed the fresh flexibility “risks causing a further sharp decline in the number of apprenticeship starts”.

The assume tank additionally concluded: “It is clear that the current system and the apprenticeship levy is not working as it should be and is not incentivising opportunity in the places that need it most”.

Training secretary Gillian Keegan stated: “Labour’s ill thought through policy will halve the number of apprenticeships, slash the budget by £1.5bn, and disadvantage small and medium sized businesses.

“Since 2010, we have built a world-class apprenticeship system from the ground up, delivering over 5.8 million apprenticeships since 2010 and creating pathways to 70 per cent of occupations through apprenticeships.

“Our plan is working. We must stick to it to deliver 100,000 more high-skilled apprenticeships a year fully funded so young people have the opportunities they deserve to secure high-skilled jobs and a brighter future. Labour would take us back to square one.”