Apprentice numbers fall despite levy introduction last year

The number of people getting into apprenticeships fell this year despite the introduction of a levy in 2017 intended to improve Britain’s skills base.

Employers have complained of the complex bureaucracy that comes with the new measures and business groups have called for a reform of the levy to help more young people start apprenticeships.

Overall, there have been more apprenticeships starts at non-levy paying employers than at employers who pay into the levy system.

The levy that came into effect in April 2017 forced employers with a pay bill over £3.0m each year to pay to apply for training services for apprentices.

The Department for Education’s figures showed that the number of apprenticeship starts in the ten months to May this year fell by 31%, compared with the same period last year.

Simon Ashworth, chief policy officer at the Association of Employment and Learning Providers, said: "On A-level results day, it’s particularly disappointing to have further confirmation that the levy reforms have led to a massive drop in apprenticeship starts, which means opportunities are limited for those young people who want a debt-free alternative to university.

"The picture looks no better for those getting their GCSE results next week, who will want to start earning while learning instead of staying on in sixth form or college. When ministers return from their holidays, they really must get a grip on this if they are serious about social mobility and improving ‘home-grown’ workforce productivity in a post-Brexit economy."