Apprenticeship levy scrutinised once again as number of new starters dives 28 per cent
The government's apprenticeship levy was once again scrutinised by business leaders today after figures showed the number of new apprenticeships had fallen 28 per cent compared to the same time last year.
Under the scheme introduced during George Osbourne's tenure as chancellor, businesses with a payroll of £3m or more must dedicate at least 0.5 per cent of this sum to government approved apprenticeship schemes.
Today's figures are another blow to the government, which wants to create 3m new apprenticeships by 2020. Since 2017, new apprentice numbers have fallen as employers have struggled to get to grips with the new regulations.
Read more: Apprenticeship levy bashed by UK businesses
Jamie Kerr, head of external affairs at the Institute of Directors, said the stats underlined that the levy system was "far from firing on all cylinders".
"The ambition of 3m starts by 2020 remains the remotest of targets," he said. "We have welcomed the ramping up of government engagement with business concerns, and recent steps to give firms more flexibility with the levy have been a step in the right direction.
"But the work must continue, and we look forward to further efforts to ensure the reality of the system matches the original ambition behind the levy.
"What employers want to see is a system more responsive to the needs of individual firms, particularly as skills shortages and the shifting labour market trends remain at the top of businesses’ lists of concerns."