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Many firms ‘don’t understand’ Levy

Businesses have yet to get to grips with the Apprenticeship Levy – a recent gathering of HR and operational professionals in the utilities and construction sector from companies including SGN, Siemens, Interserve, Skanska UK, Morrison Utility Services, and FCC Environment at an Industry Skills Forum co-organised by Develop Training (DTL) and Mentor Training Solutions – concluded.

The consensus was that ‘in some quarters it (the levy) is widely viewed as a tax, while in others managers are simply holding fire on making decisions about setting up apprenticeships given continued uncertainty’.

Chris Wood, chief executive of DTL, which specialises in the utilities, energy, and construction sector, said: “This is a sea change in the apprenticeships world, and businesses need help navigating through it. Our role is not only to deliver apprenticeship training, but also to advise clients on how to select and train coaches and mentors for their apprentices from among their existing workforce. For many businesses, that will be a crucial limiting factor in how many apprenticeships they can deliver.

“Firms have two years from their initial levy payments – which started last April – to draw down funds, so many are taking their time before making a decision. However, the system’s structure means delay may mean they will be unable to recoup everything they pay into the levy.”

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