25 October 2018
CBI responds to Apprenticeship Levy reform announcement
Apprenticeship Levy reform is finally on the table, but the job is far from over
Following party conference season and ahead of next week’s Budget it’s important to understand what business are asking for when it comes to reform of the Apprenticeship Levy.
The Chancellor of the Exchequer, Phillip Hammond, announced a series of measures to improve the Apprenticeship Levy at the Conservative Party Conference in Birmingham. The CBI welcomed the news but cautioned that job of reforming the Levy has only just begun.
The CBI has been campaigning for Apprenticeship Levy reform over the past 18 months, shining a light on businesses’ frustrations with the current design and the need for action to ensure it works in practice.
The government has now publicly acknowledged the need for reform, announcing three key CBI Budget recommendations as policy changes. Firstly, an increase in the amount employers can transfers to other firms; secondly, more resources to the Institute for Apprenticeships to help it to approve training schemes more quickly; and finally, a commitment to seek views on the operation of the Levy post-2020.
In response to the announcement, CBI Director-General, Carolyn Fairbairn, welcomed the news that Apprenticeship Levy reform is finally on the table. However, Carolyn went on to say that any review of the Levy post-2020 must be conducted in full and proper consultation with businesses.
Over the coming weeks, the CBI will be getting ready to respond to the consultation on the post-2020 levy. Evolving the Apprenticeship Levy into a flexible Skills Levy is crucial to the long-term prospects of employers and learners alike.
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