The consultation forms part of the government’s pledge to support three million apprenticeships by 2020, including a requirement to take a company’s apprenticeship offer into account when awarding large government contracts, and publishing new industry standards so apprentices have the skills that firms need.
The all-industry levy is expected to come into force from April 2017, and could spell the end for the current Construction Industry Training Board (CITB) system, with government making it clear that is considering scrapping the existing system.
Levy systems already operate in over 50 countries, including Netherlands, Denmark and South Korea, and will ensure every larger company plays their part in investing in the future generation of apprenticeships. The levy will help cement the government’s aim to build a world class apprenticeship system, led by employers.
Investment in apprenticeships provide a great return for the country’s economy – the latest research indicates that for every pound invested in adult apprenticeships at Level 2 and Level 3, the country benefits £26 and £28 respectively.
The consultation document can be found here and closes on October 2.