It is seeking views on how to pay the levy; how it should work; how to ensure employers paying the levy have the opportunity to get more out than they put in, and how best to give employers control of apprenticeships.
Terry Scuoler (pictured), chief executive at EEF, the manufacturers' organisation, said: "Whilst EEF strongly supports any initiative to increase the number of quality apprenticeships, today's limited announcement provides few answers to the questions raised by manufacturing employers now facing a levy on their businesses."
He added: "With little detail of the level of the levy, who will be required to pay it and how much government will give back in return, manufacturers have a right to remain sceptical that the levy will create the three million additional quality apprenticeships that we all wish to see. Industry will also be very puzzled to note the market intervention for transparency on Apprenticeship training in order to bid for government contracts.
"Advanced manufacturers, in particular, who already invest heavily in high quality long-term apprenticeships will be surprised by the suggestion from Government that it is they who are currently failing to invest in apprenticeships".
According to EEF data:
- Three-quarters of EEF members offer apprenticeships to acquire the skills their businesses need.
- 66% plan to recruit an engineering and manufacturing apprentice in the next 12 months.
- 38% plan to recruit a non-engineering and manufacturing apprentice in the next 12 months.
- Three-quarters of EEF members say their apprenticeships last an average of four years.
- Three-quarters say ALL their apprentices are employed upon completion of their training. The remaining 25% generally say almost all their apprentices stay with them.
- 60% of EEF members use a combination of public and private funding to fund their apprenticeships. 37% fund their apprenticeships entirely themselves.
The consultation covers the implementation of the levy. More detail on the levy rate and scope will be provided later in the year.
Respond online here.
Alternatively, complete a response form and either email it to apprenticeshipslevyconsultation@bis.gsi.gov.uk or write to:
Apprenticeships Levy Consultation
Department for Business, Innovation and Skills
Spur 2, Level 2
1 Victoria Street
London
SW1H 0ET