Apprenticeship Levy a ‘looming car crash’: EEF

The Apprenticeship Levy is “a looming car crash” and government should delay the scheme, urged EEF, the manufacturers’ organisation.

The organisation’s research claimed only 1% of manufacturers supported the levy’s roll out in its current form while almost three quarters wanted it delayed.

More than two-thirds of firms agreed with the government’s drive to boost apprenticeships but 18% thought that the current Apprenticeship Levy could deliver this.

The food and drink manufacturing sector will see a shortfall of skilled workers totalling 130,000 people by 2025, according to the National Skills Academy for Food & Drink.

EEF director of employment and skills policy Tim Thomas said: “The headlong rush to bring this levy to market has left little time to iron out some significant wrinkles and get responses to industry’s unanswered questions.

‘Looming car crash’

“As a result, firms can see serious flaws that could sink this policy at launch. This is in nobody’s interests, which is why we’re recommending a delay to buy us all enough time to avoid the looming car crash.”

Of the businesses EEF surveyed, 92% wanted the levy to be simple to administer, 89% wanted it to be easy to understand and 79% wanted easy access to funding.

“Apprenticeships are vital for our sector and the UK economy and it’s important that we get this scheme right,” said Thomas.

“That means taking the time to build a swift, sturdy and simple system that businesses can rely on and trust.”

The latest Confederation of British Industry (CBI) survey claimed that companies were spending more money on training and retraining.

Skills shortages’

CBI director for economics Rain Newton-Smith said: “Higher spending on training is often a sign that skills shortages are biting again.

“This further underlines the need for business and government to work together in the coming months and make sure we get the design of the apprenticeship levy right.”

Meanwhile, 2 Sisters Food Group technical learning and development manager Janette Graham has underlined the manufacturer’s support for the government’s Trailblazer programme of apprenticeships.

In an exclusive interview with Food Manufacture at Foodex in the past month, she said: “Within Trailblazers – in which I have been involved as chair on the operations side of things – we have an employer­-led group that covers all areas of the food and drink industry.

“Apprentices are very important for 2 Sisters Food Group. We need to drive young talent into the business. We [the food manufacturing sector] have an ageing workforce, so we need to recruit people for the future.”

 

EEF research claims

  • 1% of manufacturers support levy roll out
  • 72% of manufacturers think levy should be delayed
  • 53% of firms find the levy confusing
  • 70% of firms agree with government’s drive for more apprentices