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An effective apprenticeships levy

Apprenticeships are a valuable way of getting more Londoners properly trained and into lasting jobs. London First seeks to promote the business benefits that apprenticeships can provide for business and lobbies to ensure the Government’s apprenticeship strategy is fit for purpose and business friendly.

We do this at our annual careers event, Skills London, where 30,000 15-24 year olds get a chance to speak directly with employers and find out about apprenticeships and other training opportunities.

A consultation by the Department for Business, Innovation & Skills (BIS) on its proposal to introduce an apprenticeship levy has just closed. BIS was seeking views on how to pay the levy and how best to give employers control of apprenticeships.

London First has responded to the consultation setting out our concerns on how the levy should work in practice:

  • Where a business already runs apprenticeship or other successful training programmes, they should be taken into account when considering whether a skills levy should be applied.
  • Apprenticeship programmes do not suit all employers. We would be concerned to see businesses being forced to axe exiting work based training programme in order to meet Government apprenticeship targets,
  • An effective administrative system – linking up labour market and business data across multiple Government departments – should be developed and put in place,
  • Supporting London’s high skilled economy with a suite of quality higher level apprenticeship frameworks that reflects the needs of London’s key sectors, including financial services, professional services, creative and tech,

The consultation covers the implementation of the levy and more detail on the levy rate and scope will be provided later in the year.

You can find our full consultation response here.

Contact: Mark Hilton, mhilton@londonfirst.co.uk

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