Apprenticeship Levy’s failure to reverse decline in employer training is “concerning”, says Logistics UK

In 2020/21 there were 123,800 recorded apprenticeship starts in England, a 49% drop from the 241,000 figure recorded in 2017. 

The report also indicates a 14% decline in apprenticeship starts in firms with 250 or more staff and that starts in general across England have dropped 31% since the Levy was introduced. 

“Unfortunately, this CIPD report shows exactly what we’ve suspected: the Apprenticeship Levy is not providing value for employers and failing to address skills gaps within our industry,” says Logistics UK’s Policy Advisor, Jonas Keat. 

“Since 2021, Logistics UK has been calling consistently for reform to the levy system, so that employers are able to utilise skills funding for the types of training most needed within their business. 

“This would allow businesses to use the funds for upskilling – which they’ve signalled to us would be more beneficial – so they can invest in current employees.  

“At the moment, the Levy is overly restrictive and the result is that vast amounts of levy funds are going unspent within the sector. This report confirms that the levy is not having its intended effect and that the programme should be reviewed as a matter of urgency.  

“To see the kind of numbers in this report despite the number of skills shortage vacancies more than doubling in England is concerning to say the least.” 

“Logistics UK will continue to monitor the situation and petition for reform,” Keat concludes. 

Logistics UK is now an officially approved, government-funded apprenticeship training provider. We are launching the Level 3 Transport Operations Supervisor in Jan 2024, so you can develop your employees into the Transport Managers of the future. Join one of our webinars to find out more: Tues 7 Nov, 10-11am; Thurs 9 Nov, 1-2pm.

Published On: 02/11/2023 14:00:00

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