New Chancellor Sajid Javid needs to deliver on his commitment to broaden the Apprenticeship Levy, according to theRecruitment and Employment Confederation (REC).
Writing in the Financial Times in June, Javid promised to 'broaden the apprenticeship levy into a wider skills levy, giving employers the flexibility they need to train their workforce, while ensuring they continue to back apprenticeships.”
The REC said it agreed that a broader, more flexible levy is needed to open up training opportunities for temporary workers while also continuing to support apprenticeships.
Earlier this month the industry body launched a petition calling on the government to introduce reforms to create a flexible training levy. This would enable as many as 960,000 temporary workers to benefit from better skills training using the levy funds their agencies pay to the Treasury, it said. At the time of publication the petition had attracted 528 signatories towards the target of 1,000.
REC pointed out that currently its members already have at least £104 million of Apprenticeship Levy funds between them going unspent, because it can’t be used to support the temporary workers on their payrolls. Courses which could lead to significant pay rises and higher productivity would be unlocked if money paid for the Apprenticeship Levy could also be used on other high-quality qualifications as part of a skills levy, it added.
Sophie Wingfield, head of policy and public affairs at the REC, said: 'I would like to offer a warm welcome to Sajid Javid in his new role as Chancellor of the Exchequer. Javid takes over at a critical time for business and we look forward to working constructively to make the case for brilliant recruitment as a driver of prosperity.
'Javid’s recognition of the need to reform the Apprenticeship Levy is especially welcome. The levy was implemented with the best of intentions but could help benefit the progression opportunities for many more workers if it could be used for broader training. We would welcome working together to end the scandal of locking out temporary workers so that critical industries facing skills shortages can access the talent they need.”
