William Eichler 02 March 2018

Apprenticeship system should be ‘fully devolved’, council chiefs say

The Apprenticeship Levy needs to see ‘significant changes’, council chiefs warn as the number of people starting apprenticeships drops dramatically.

The latest figures show there were 195,200 apprenticeship starts between April and November 2017. This represents a 40% drop compared with the corresponding seven months in 2016.

All public and private employers with a wage bill of more than £3m have had to contribute 0.5% of this expenditure to the Apprenticeship Levy since April 2017.

The Government plans for this to fund the creation of 3 million new apprenticeships by the end of the decade.

However, the decrease in the number of starts — a drop in total of 131,500 — suggests ‘significant changes’ need to be made for the Levy to be effective.

The Local Government Association (LGA) argues a more locally coordinated approach would help the Levy reach its potential.

Local areas should be allowed to pool Levy contributions and have greater flexibility on how they are used, the LGA says.

The apprenticeship system — and all non-Levy apprenticeship funding — should be fully devolved and all Levy underspend should be allowed to go back to local areas where it is raised.

The LGA also called for an extension on the two year limit to spend the Levy against key standards for local authority workforces including teaching and social care.

Currently, these cannot be accessed until September 2018 giving councils too little time to spend their Levy.

‘Combined authorities and councils fully support the ambitious target of creating 3 million apprenticeships by 2020 but could do far more if the Government allowed them to pool and plan local provision,’ said Cllr Sir Richard Leese, chair of the LGA’s City Regions Board.

‘Devolving apprenticeship funding to the local areas in which they are used will allow combined authorities and councils, schools, colleges and employers to work together to help people get the skills they need to progress in work, and supply businesses with the right skills at the right time to help local economies grow.’

SIGN UP
For your free daily news bulletin
Highways jobs

Senior Client Affairs Officer - until 31st March 2027

The Royal Borough of Kensington & Chelsea Council
Negotiable
Lead the vital work of managing client finances with care, accuracy and integrity As Senior Client Affairs Officer, you'll play a key leadership role in managing and protecting the finances of vulnerable residents who cannot manage their own money. England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Head of Finance and HR Systems

The Royal Borough of Kensington & Chelsea Council
Negotiable
Lead the vital systems that power our council and enable our teams to deliver reliable, efficient services for our community As our Head of Finance and HR ICT Systems, you'll lead the digital backbone of Kensington and Chelsea, with strategic ownership England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Multi Trade Carpenter

The Royal Borough of Kensington & Chelsea Council
Negotiable
Carry out high-quality repairs that keep our homes safe and well maintained England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Visual Impairment Rehabilitation Officer

The Royal Borough of Kensington & Chelsea Council
Negotiable
Support residents with sensory loss to rebuild confidence, develop practical skills and live independently As a Visual Impairment Rehabilitation Officer, you'll support residents with sensory impairments to build practical skills, confidence, and indep England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Visual Impairment Rehabilitation Officer

The Royal Borough of Kensington & Chelsea Council
Negotiable
Support residents with sensory loss to rebuild confidence, develop practical skills and live independently As a Visual Impairment Rehabilitation Officer, you'll support residents with sensory impairments to build practical skills, confidence, and indep England, London
Recuriter: The Royal Borough of Kensington & Chelsea Council
Linkedin Banner