Some of the UK’s leading business groups have raised concerns about the Government’s aim to create three million apprenticeships in the space of five years.
Ministers propose to place a new levy on employers to help them reach their ambitious target.
But the Confederation of British Industry (CBI) and manufacturers’ body the EEF have warned against pursuing the proposals if they run the risk of damaging the quality of training available.
The levy was unveiled by George Osborne in his July Budget, with the Chancellor making the case that creating more apprentices will help tackle the UK’s crippling skills shortage.
However, there are widespread concerns that some employers may attempt to rebrand existing low-skill positions as apprenticeships to meet training targets.
“Companies have serious concerns as to how the scheme will work in practice,” said Tim Thomas, EEF’s head of employment and skills policy.
“If this proposal is to avoid being a pile-them-high, sell-them-cheap approach and actually increase the quality of apprenticeships as well as hitting the government’s three million target, then the Government must sit down with employers as a matter of urgency to design a workable scheme.”
Katja Hall, the CBI’s deputy director-general, also voiced reservations about the approach being taken.
“At a time when firms are already investing over £40bn a year on formal training and increasing apprenticeships, there is a high risk it could undermine the system not strengthen it,” she said.
“A new levy won’t be welcomed by business, so we want to see a new politically independent levy board setting the rate based on clear evidence with the funds ring-fenced.”