Apprenticeship Overhaul Sparks Response from REC
In an effort to enhance the apprenticeship levy system and increase opportunities for young workers, the government has proposed a new solution. A sliding scale of cash incentives for employers is set to be introduced, with a focus on encouraging firms to take on apprentices under 25 years old [1].
This move aims to boost apprenticeship availability and help address youth unemployment. Under the current rules, employers and providers receive a £1,000 incentive for taking on apprentices aged 16 to 18. The new plan aims to expand and increase such incentives [1].
This approach is part of a broader government strategy to tackle anticipated large-scale unemployment and ensure that apprenticeships better meet industry and labor market needs. The changes also coincide with recent reforms to apprenticeship funding rules and assessment methods aimed at improving quality and effectiveness [3].
Collaboration with employers is considered essential to improve apprenticeship opportunities across various industries, including healthcare and construction. A greater emphasis on shorter, modular courses is suggested to maximize talent in the country [2].
Firms have been growing increasingly frustrated by the lack of progress on the apprenticeship levy issue. The proposed changes do not address the poor design of the apprenticeship levy, which has been a key factor in reducing apprenticeship opportunities for young workers [4].
In summary, the proposed solution involves a sliding scale of incentives that will reward employers more for hiring younger apprentices, increasing apprenticeship opportunities for young workers, and aiming to maximize talent across industries by encouraging employers to engage more with apprenticeship schemes. This is the key reform currently outlined as a solution to improve the apprenticeship levy system in the UK [1][3].
[1] GOV.UK. (2021). Reform of the Apprenticeship Levy: Winter Update. Available at: https://www.gov.uk/government/publications/reform-of-the-apprenticeship-levy-winter-update/reform-of-the-apprenticeship-levy-winter-update
[2] Department for Education. (2020). T Levels: skills for tomorrow's world. Available at: https://www.gov.uk/government/publications/t-levels-skills-for-tomorrows-world/t-levels-skills-for-tomorrows-world
[3] GOV.UK. (2020). Apprenticeship funding and assessment changes. Available at: https://www.gov.uk/guidance/apprenticeship-funding-and-assessment-changes
[4] House of Commons Library. (2019). Apprenticeships: levy and funding. Available at: https://commonslibrary.parliament.uk/research-briefings/cbp-8491/
- The focus of the sliding scale cash incentives for employers in the proposed solution is aimed at boosting education-and-self-development opportunities for young workers, as part of a broader government strategy.
- The new plan to expand and increase incentives for employers who take on younger apprentices aims to promote education-and-self-development across various industries, especially healthcare and construction.
