Calls for Skills Investment Pledge to reverse drop in apprentice starts
At the start of National Apprenticeship Week, Make UK proposes a Skills Investment Pledge.
Apprenticeship starts in manufacturing and engineering have decreased by 40% since the introduction of the Apprenticeship Levy in 2017.
This is despite over £1bln of revenue being raised from businesses for skills via the Growth and Skills Levy and Immigration Skills Charge. However, the revenue is not currently being used by the government to support employer investment in training, reports trade body Make UK.
Make UK says that ringfencing the Growth and Skills Levy and Immigration Skills Charge would provide an annual boost to the economy worth up to £5.9bln.
Make UK’s Industrial Strategy Skills Commission finds that a lack of the right local training provision is a barrier to employers taking on more apprentices.
Suggestions from Make UK are:
- Increase the supply of apprenticeships and other high-value courses through direct incentives, particularly targeted at smaller employers.
- Identify ways to loosen the training criteria with a primary focus on Industrial Strategy sectors, trusting businesses in these sectors to know how to address the skills shortages they face.
