Think tank warns Apprenticeship Levy benefits may be overestimated
27 Mar 2017
The new Apprenticeship Levy introduced in April will have less impact in regions of high unemployment and raise a smaller amount of money than expected, warns an influential think tank.
The Institute for Public Policy Research (IPPR) pointed out that the levy would be focused on London and the South East which have nearly 40% of UK large businesses but little more than a quarter of the population and highest levels of employment.
IPPR associate director Clare McNeil commented: “It is extraordinary then that the government has not analysed the regional impact of its new apprenticeships policy, which is likely to boost investment in training precisely in those areas where employment is higher.”
The Government’s aim is to create a total of 3 million new apprenticeships by 2020, with the cost subsidised by a levy on all firms with a payroll exceeding £3 million who will be charged the equivalent of half of one percent of their wage bill.
Its new apprenticeships policy... is likely to boost investment in training precisely in those areas where employment is higher
Clare McNeil, associate director, IPPR
Responding to criticism, government minister Robert Halfon said the aim was to double 2010-11 apprenticeship funding by 2019-20 and align training better to meet the needs of employers.