Today’s apprenticeship changes by the UK Government are seen as an initial but insufficient step to revitalise the system.
- The Government announced plans to fully fund apprenticeship training in small firms for young people under 21.
- This measure may encourage more SMEs to hire apprentices and benefit younger workers.
- However, a mere 20,000 new apprenticeships aren’t enough to counter the decline since 2017.
- Calls for deeper reform of the Apprenticeship Levy to address ongoing challenges are growing.
The UK Government has launched new measures to support apprenticeship training in small businesses for individuals aged up to 21. The initiative aims to encourage smaller enterprises to recruit apprentices and provide opportunities for younger people. The policy, while beneficial, is seen as only a partial solution to a broader issue.
The introduction of 20,000 apprenticeships as a result of these changes has been criticised for being insufficient in addressing the significant reduction in apprenticeship uptake noted among SMEs and young individuals from 2017 onwards. The shortfall in available apprenticeships continues to be a pressing concern.
The increase in the percentage of levy funding that large employers can transfer to smaller firms to facilitate apprenticeship recruitment is also viewed as inadequate. Historically, examples of significant usage of the levy transfer mechanism by larger companies have been limited.
To truly resolve these issues, experts believe that comprehensive reform of the Apprenticeship Levy is necessary to make it more adaptable to the needs of employers and learners. A more flexible levy system could enable employers to allocate funds towards developing the skills of current employees through diverse forms of training, offering a more cost-effective and suitable approach for workers over 25 years old.
Such a reformed system would allow more targeted investments in apprenticeship opportunities for young people, optimising benefits where they are most needed and ensuring a more sustainable future for the workforce.
The recent government changes are a step forward, but comprehensive reform is essential to fully address apprenticeship challenges.
