Hays Travel to recruit one apprentice per branch

Hays Travel is hoping to recruit more apprentices than it did last year, targeting “one for every branch”.

The UK’s largest independent agency chain, with 157 branches, has employed apprentices since the 1980s, including 146 new recruits in 2017.

When added to those already on the programme, there were 242 apprentices on Hays’ books last year after 3,145 applications. The agency was recently voted among the top 100 companies for employing apprentices.

So far this year, there have been 983 applications and roles are available as travel consultants and in head office roles such as customer service, marketing and IT.

Carole Hodgson, the apprentices delivery manager, said: “Every year we’ve seen a huge number of applications. We firmly believe in the apprenticeship programme and what apprentices can do for Hays Travel.

“This year we want to recruit the same or more than last year. One for every branch.”

Hodgson, who joined Hays as an apprentice in June 1988, said the agency is looking for “enthusiasm, passion and personality” in its apprentices and vowed to help them progress their careers.

Applicants are asked to attend an assessment day where they present a holiday as part of the recruitment process. Open days have also been arranged for early March, around National Apprenticeship Week.

She added: “Apprentices bring new, fresh ideas, especially in evolving areas like digital marketing.

“We find apprentices quickly progress into our rising stars and management positions. Progression rates are really high.

“Hays Travel has expanded hugely, and we are continuing that expansion. Having apprentices who have been with us from the start of their careers helps us with that.”

Offering progression is key to retaining the apprentices, Hodgson added, as well as saying that it creates a talent pool for the whole industry.

“These are young people who want to explore and see the world. We find that apprentices learn a lot at Hays Travel, sometimes move on to be reps or work for airlines, and then return to us later in their careers,” she said.

To find more details, click here to visit Hays Travel’s career page.

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Does the Apprenticeship Levy need fixing?

As the levy celebrates its first birthday in April, we take a look at some of the teething problems it has faced and ways in which it can be successfully leveraged.

One of the government’s flagship skills policies, the Apprenticeship Levy, celebrates its first birthday in April. But despite the great hopes at the launch, the programme has yet to find much love from businesses – indeed a growing number of corporates are complaining that the structure and administration of the levy are proving counterproductive.

When skills minister Nick Boles launched the levy in April, much was made of the impact it would have on investment levels in skills training across a range of sectors.

Boles recently told FE Week: “I’ve always been quite interested about the idea of hypothecated taxation and whether you can get greater acceptance on the part of people paying the tax if they know what it’s going towards.”

“Politically, it fell on the very fertile ground because the chancellor and the PM felt that, in a sense, this was the time to cash in our chips with business.”

“So when I presented the idea of the levy to George [Osborne] first, I could see, immediately, his eyes lit up. He thought, ‘now that’s great’ because it solves how we get the three million and how we pay for it.”

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Fall in apprenticeships may force ‘radical rethink’ of UK policy

The government is under renewed pressure to implement a “radical rethink” of apprenticeships after a near 27% fall in the number taking up trainee posts in the last quarter of 2017.

The number starting apprenticeships dropped to 114,000 between August and October, down from 155,700 in the same period in 2016. That followed a 59% drop in the previous three months after the introduction of the apprenticeship levy in April last year.

The biggest drop came in “intermediate” apprenticeships, the basic level, which dropped 38% to 52,000. The highest level of apprenticeships – known as degree apprenticeships – rose nearly 27% to 11,600. Schemes for adult apprentices were worse affected than for those young people, falling by just over 30% compared with 20%.

Critics say employers are being deterred from creating apprenticeship posts because of the increased costs and complexity of the new scheme.

Businesses with a payroll of more than £3m are charged 0.5% of their payroll towards the apprenticeship levy. A fifth of training must be carried out away from the workplace and employers with 50 or more staff must contribute 10% of the cost.

Seamus Nevin, head of policy research at the Institute of Directors (IoD), said the government risked failing to meet its target of 3 million people starting apprenticeships by 2020.

“Clearly the new system has failed to take off,” he said. “The levy can be difficult to navigate and many employers still struggle to comprehend how the system is meant to work.”

The IoD said more than one in 10 of its mostly smaller company members paying the levy now viewed it as an extra tax and could no longer afford to offer any apprenticeships.

The government is no longer fully funding apprenticeships, particularly for young people. The cuts have been heavily criticised. Mark Dawe of the Association of Employment and Learning Providers said: “For a government committed to improving social mobility, ministers have to be really concerned about the continued drop in starts for both young people and at lower levels.”

The association wants all apprenticeships for 16- to 18-year-olds to be fully funded by the government.

Verity Davidge, head of education and skills policy at EEF, the manufacturers’ organization, said: “Today’s figures should act as a wake-up call to the government which has failed to act on industry’s growing concerns around the apprenticeship levy.

“This worrying trend is not just hampering employers’ ability to get the skills their business needs, it is taking away invaluable opportunities for the next generation to undertake training and secure a future job. It is clear the apprenticeship levy and wider reforms aren’t working and need a radical rethink.”

Neil Carberry, managing director of people policy at the CBI, said it wanted the levy to evolve into a “flexible skills levy” that would fund a broader array of training courses.

“Today’s drop in apprenticeship starts remains alarming and proves again that the apprenticeship levy isn’t yet working for businesses, apprentices, and the economy. A fresh approach is needed to make skills reforms work,” he said.

The government said it remained committed to 3m apprenticeships after signing up more than 1.2 million new trainees since May 2015.

Anne Milton, the minister for apprenticeships and skills, said: “The last year has been a period of significant change. It will take time for employers to adjust.

“But we must not lose sight of why we introduced our reforms in the first place – to put quality at the heart of this programme, and put control in the hands of employers.”

Workers’ rights groups have suggested that the number of apprenticeship starts is falling because the levy is weeding out the use of low-quality apprenticeships. They believe employers were offering minimal training as a way to source cheap labor because the minimum wage for apprentices is below the national minimum wage. The Unite union has raised concerns about the lowest grade of apprenticeships and whether they are beneficial.

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DCCI chief: Is it time to rethink the apprenticeship levy?

May 2017 saw the introduction of the apprenticeship levy. Designed to help the government meet its target of three million apprenticeship starts in five years from May 2015, this new tax was introduced for larger businesses with a payroll of £3million plus, requiring them to pay a levy that they then can draw on to support the cost of apprenticeships in their business. Businesses with a payroll of £3m plus must pay a level of 0.5 per cent of their payroll costs over £3m less a £15,000 allowance.

There has been widespread negative press coverage regarding the levy and it hasn’t proved to be popular with many employers. It’s been especially unpopular with those employers who have invested in and supported the apprenticeship programme for many years as a key part of their recruitment and training programmes and the levy is essentially another form of taxation. A 2016 Dorset Chamber survey of 20 Dorset businesses paying the levy revealed many were unhappy with the levy and saw little benefit from the scheme in terms of incentivising them to create new apprenticeship vacancies. It’s also been reported many employers are simply converting existing staff on to apprenticeship programmes as opposed to creating new apprenticeship vacancies and are seeking ways to claim the levy back on other training. Businesses have also complained at the complexities in using the levy to pay for training.

What is concerning is the major fall in numbers starting apprenticeship schemes; new starts in the period August to October this year stood at 114,000, down from 155,700 in the same period in 2016, a drop of 27 per cent. Government data showed that in the May to June quarter, covering the period when the levy came into effect, apprenticeship starts plunged by 59 per cent in the previous three months at 69,800. Critics say employers are being deterred from creating apprenticeship posts because of increased costs and the complexity of the new scheme.

Many employers and business groups have spoken out against the levy. “The levy is nothing but a tax,” said Sir John Timpson, chairman of Timpson. “The only way to get money back is a tortuous process of changing your training programme to fit government guidelines.” The EEF have described the situation as “at breaking point”. Research by the British Chambers of Commerce found nearly a quarter (23 per cent) of levy-paying firms have no understanding of the apprenticeship levy or don’t know how their company will respond to it. Sixty-six per cent of these companies haven’t taken any direct action to use the funds or don’t know about it. For over half of levy-paying businesses, it represents an added cost, with 56 per cent not expecting to recover any or only a portion of their payment, compared to 36 per cent who expect to recover all or more of their payment. Employers are stating they find the levy costly, a blunt instrument and complex.

Our view is employers should of course be encouraged and importantly incentivised to invest in the apprenticeship programme. We also know apprenticeship providers in Dorset are doing their best to advise businesses on how to benefit from the levy. Apprenticeships offer businesses a tremendous opportunity to recruit and train the skilled workforce we need now and in the future. With apprenticeship programmes now ranging from intermediate to degree level covering all industries, they offer a huge range of qualifications and we would encourage all businesses to embrace the apprenticeship programme. However, it would seem the levy is not working for many businesses and perhaps it’s time for the government to reconsider its plans on encouraging employers to invest in apprenticeships and come up with a more business-friendly approach.

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Apprenticeship decline could spell extinction for university alternative

I nearly choked on my bacon sarnie the other morning when I read about the apprenticeship decline, which revealed the amount of starting apprenticeships dropped to 114,000 between August and October last year. That’s down from 155,700 for the same period in 2016.

Of course, it wasn’t looking good for this latest set of numbers as it followed the massive 59 percent drop in the previous three months, which unfortunately came after the launch of the Apprenticeship Levy.

If we dial things back a few years to when George Osborne and David Cameron declared the government would help create three million new apprenticeships, I honestly thought the tide had started to turn.

Coming on the back of Tony Blair’s failed “education, education, education” mantra and a “university at all costs” teaching system, it seemed that someone, somewhere in the halls of power had remembered how important apprenticeships are to the country.

After all, work, in most of its many forms, is a practical thing. Whether it’s installing a heating system, building a bridge or preparing a set of accounts, most jobs involve tasks that relate to that vocation that often can’t be learned in the classroom.

Having young people train in a business, in a structured and assessed way, is a common sense route to creating a skilled workforce for this country. It’s also a great way to solve youth unemployment, social issues…I could go on. And, to be fair, I usually do, because apprenticeships are vital to our future prosperity.

That’s why, after all my conversations with the government over recent years, pushing the need to raise the value and perception of vocational training, I was initially in favor of the Apprenticeship Levy.

So many companies have failed to invest in training that it seemed like the only way to get their attention and to focus their minds on training young people was to hit them in the pocket.

The government had already done it with pensions making putting a few quid into a pot a statutory obligation for those without one, so why not do the same thing with training.

Unfortunately, while the man in the street will begrudgingly accept that a bit of their take-home pay is now being put in a pension, big businesses are a lot more begrudging, thus we’re seeing an apprenticeship decline.

As a result, they have squirmed out of their responsibility to apprenticeships by using their budgets to train existing staff or are writing it off as a tax.

The worst impact of the Apprenticeship Levy has been on those businesses it was designed to help – SMEs.

In simple terms, the money put in by the big firms, through their 0.5 percent contribution from their £3m plus wage bills, can be accessed to help small businesses take on apprentices they couldn’t afford.

On the face of it, that makes sense, but it hasn’t worked out that way. The paperwork is too much for some small companies while some of those who already had schemes in place have scrapped them due to the difficulty of making them compliant with the Levy structure.

It feels like the government has promised a slap-up five-course meal, got confused in the kitchen and come out with a single slice of toast that’s soggy and not at all appetizing.

It’s a bit of a mess and unless big companies fulfill their apprentice obligations and small firms can access the funds in a more straightforward way, the apprenticeship decline spells a danger of dying out.

Simplifying the system and not allowing big companies to avoid their responsibilities, will help rescue the apprenticeship decline and prevent it from the waste bin of history.

People like myself have campaigned tirelessly to raise the standing of apprenticeships and the constant stream of young people applying to companies like Pimlico Plumbers proves that kids see the value in them.

But, as Alice Thompson so rightly wrote in The Times last week, there is a snobbery around apprenticeships, mainly among some parents and the establishment, which see them as a step down from a university education.

Tell that to one of my £100,000-a-year apprenticeship-trained plumbers!

But these guys and girls will become an endangered species if we’re not careful, which will not only be exceptionally sad, but the apprenticeship decline will also be extremely damaging to the economy.

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“Renishaw” in search for 50 apprentices

Renishaw is recruiting for a record number of 50 apprentices across its Gloucestershire and South Wales sites.

The company offers an award-winning scheme, where apprentices gain nationally recognized qualifications, some up to degree level, alongside on-the-job experience. Renishaw’s apprentices earn while they learn, benefitting from a competitive salary and benefits package.

Applications are now open until Friday, March 9th, 2018, the end of National Apprenticeship Week.

The Gloucestershire-based technical and manufacturing schemes require applicants to be GCSE qualified. They will commence an advanced apprenticeship through attendance at Gloucestershire Engineering Training, with most going on to HNC and HND studies.

For the South Wales apprenticeship scheme, applicants are required to be in the first year of an Engineering BTEC or EAL Level 3 and must have a PEO Level 2 in Engineering. They will study the second year of their qualification, via Bridgend College, with most apprentices undertaking an HNC and HND level qualification.

Apprentices then move onto rotating placements in different sections of the company. The opportunity for possible continued study towards a degree exists for apprentices who demonstrate future potential.

Renishaw also offers degree-level apprenticeships in software and embedded electronic systems design, open to young people who have completed their A Levels. From the first year, apprentices on these programmes will study for their degree alongside working on projects at Renishaw, gaining theoretical knowledge that can be applied to hands-on projects.

Embedded electronic systems design apprentices work towards a BEng (Hons) in Electronic and Computer Engineering, accredited by the University of the West of England (UWE). Software engineering apprentices study for a BSc (Hons) in Digital and Technology Solutions in partnership with the University of Exeter, one of two Russell Group universities offering this degree apprenticeship in 2018.

Chris Pockett, head of communications at Renishaw, said: “An apprenticeship at Renishaw gives you the opportunity to work on ground-breaking engineering projects. As well as gaining hands-on experience in innovative and exciting industries, our apprentices have access to expert training and support, to continually build on the skills they are learning as part of their studies.”

For its Gloucestershire-based headquarters, Renishaw is searching for 20 technical apprentices, 10 manufacturing apprentices, 10 degree-level software apprentices and four degree-level embedded electronic systems design apprentices. The company is also recruiting for six manufacturing apprentices at its Miskin site.

Check out the Renishaw website: www.renishaw.com/apprentice.

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Cornwall to host apprentice games

Cornwall is to host a ground-breaking event for apprentices and their employers, which will test them in a day of challenges and competition.

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The inaugural Apprenticeship Games will pitch companies against each other in a bid to find the region’s ‘Apprentice Team of the Year’, who will be handed the games’ specially designed apprenticeship torch.

Taking place at Cornwall College St Austell during National Apprenticeship Week 2018 in March, teams from the South West’s leading employers will compete in a series of challenges to showcase their skills.

Group director of development at The Cornwall College Group and head of Cornwall College Business Sally Foard said the idea was to create a fun and engaging event that ‘cut through the noise created by the new apprenticeship structures’.

The day will also be hosting a networking lunch to give businesses and sponsors the opportunity to engage and share their stories.

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Vince Cable claims apprentice levy is a nightmare

The government’s £3bn apprenticeship levy has turned into a “bureaucratic nightmare”, Liberal Democrat leader Sir Vince Cable said Wednesday night.

“The concept is great, the theory’s fine, but the implementation has been just awful,” the former business secretary told a debate about the future of talent where ideas to close the skills gap and prepare the workforce for a high-tech future were discussed.

Introduced last April, the levy was meant to target firms that don’t invest enough in training and be reimbursed to those that do. “But that has got lost somewhere,” Sir Vince said at the Midtown Big Ideas Exchange in association with the Evening Standard. “What happens now is the companies that do good training pay twice and the revenue don’t get to small companies that ought to be doing more.”

The controversial policy, which requires employers with an annual wage bill of £3m or more to contribute 0.5% of their staff costs, is expected to face more criticism as the education select committee probes training and apprenticeships after enrolment numbers fell.

Tim Campbell from recruiter Alexander Mann Solutions was more encouraging about the scheme. “We have seen some great initiatives where big organizations have used their levy payments to support people in their supply chain with education, particularly in the engineering sector,” he said. “We have to make sure we connect young people with the right pathways and don’t just focus on numbers.”

Panellists including Gillian Nissim, founder of workingmums.co.uk, and Jack Parsons, chief executive of the Big Youth Group, also discussed the importance of encouraging creativity in the classroom as today’s primary schoolchildren prepare for a future where nearly 65% will fill jobs that don’t exist yet, according to the World Economic Forum.

Roxanne Stockwell, the principal of Pearson College London, which staged the event, said: “It is important for people to learn how to learn. Where do they get information from when there is a data overload and much of it is absolute nonsense?”

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Experts call for re-think of apprenticeship levy as apprentice numbers fall

There were 114,000 new apprenticeships which began in the first quarter of the 2017/18 academic year, compared to 155,600 in the same period one year previously, according to provisional figures published by the Department for Education (DfE).

The apprenticeship levy, which is payable by large businesses with a payroll of more than £3 million, was introduced in April 2017. The same data showed a 59.3% drop in the number of new apprenticeships which began in the previous three months, immediately after the introduction of the levy, when compared to the same period one year previously.

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A total of 67,200 apprenticeships have been supported by the levy, of which 46,100 were reported in the first quarter of the 2017/18 academic year, the DfE said.

Employment law expert Matt McDonald of Pinsent Masons, said that the “stark statistics” made it seem “likely that the government will have to re-visit the operation of the levy at some point soon”.

“The whole purpose of the apprenticeship levy was to increase the number of apprenticeships being offered by employers across the UK,” he said. “A stagnation in numbers would have been viewed as a failure, so the fact that they have actually dropped – and significantly so – is a rather embarrassing indictment of the levy and suggests that it is having the reverse effect.”

“Dropping the scheme altogether seems unlikely as this was something of a flagship policy for the government, although doubtless many employers would welcome such a move. A simplification of the scheme, and perhaps fewer restrictions on how the funds can be spent, is probably the more likely outcome,” he said.

The apprenticeship levy is charged at a rate of 0.5% of payroll on employers with an annual wage bill of £3m or higher. The levy is used to fund ‘digital accounts’ from which employers are able to pay for apprenticeship training, and is part of government plans to deliver three million new apprenticeships by 2020. Smaller businesses, and additional apprentices for those that wish to spend more than what it is in their account get 90% of the costs of training paid for by the government, while levy funding is also topped up by the government.

Commenting on the DfE Twitter account, apprenticeships minister Anne Milton said that it would “take time for employers to adjust” to the new system.

“We must not lose sight of why we introduced our reforms in the first place – to put quality at the heart of this programme, and putting control in the hands of employers,” she said.

Milton added that employers had two years to spend the funding they had contributed through the levy.

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Ministers should listen to employers on apprenticeships

What’s gone wrong with the government’s levy-backed approach to boosting apprenticeships? Nothing, according to Anne Milton, apprenticeships and skills minister. “The last year has been a period of significant change, it will take time for employers to adjust,” she said, putting a heroically optimistic spin on another set of alarming figures.

Thursday’s data, covering the August-October 2017 quarter, showed a 27% drop in the number of apprenticeships on a year ago. That wasn’t as bad as the 59% plunge in the May-July period, but traveling in the wrong direction more slowly is not progress. Most independent observers think the government will miss its five-year target of reaching three million apprenticeship starts in England, from a starting point of May 2015.

The numbers turned south immediately after the government introduced the apprenticeship levy, a 0.5% payroll charge on all big employers, in April last year. You don’t have to be Hercule Poirot to think the levy-funded reforms could be the problem.

That was certainly the view of the Chartered Institute for Personnel Development (CIPD) when it warned of “unintended consequences” a couple of weeks ago. Nearly half of employers were simply re-badging existing training schemes as apprenticeships to claim back their levy allowance. Almost a fifth don’t plan to develop apprenticeships and regard the levy as just another tax. The only real advance has been in degree apprenticeships.

Rather than trust that the numbers will somehow improve, ministers could try listening to employers. Roughly speaking, the view of the CBI and the Institute of Directors is that the scheme is bureaucratic, costly and inflexible. That is why there are calls for a more flexible “training levy” – one that covers all workplace training, not just apprenticeships.

In one regard, you can’t blame ministers for being suspicious of these corporate cries. The danger is that employers would divert allocations from a more loosely defined scheme into general running costs. On the other hand, it’s blindingly obvious that the new scheme doesn’t command confidence. Worse, it’s failing for reasons that were predicted. As long ago as June 2016, the CIPD warned the government it was designing a “blunt instrument” and that a “one size fits all” approach was a mistake.

Ministers should heed the calls for a rethink. Conceived by George Osborne in 2015, the levy-backed scheme was sold at last year’s launch as the way to equip the nation with the skills required for life after Brexit. The plan isn’t working and Brexit approaches.

Asos’s ambition now looks credible
It was stock market news a couple of months ago when the value of Asos, the online fashion retailer, surpassed that of ancient old Marks & Spencer. The position now? Asos has accelerated away. M&S is still worth about £4.9bn but Asos, after a strong run for its shares, is at £5.7bn.

The valuation looks extraordinary when you remember that Asos is on course to achieve profits this year of only about £100m versus roughly £575m from M&S. It’s one hell of premium to put on Asos’s future growth and profit potential. The company is being valued at more than 70 times this year’s earnings.

For that money, you get a retailer that is clearly motoring. Sales in the UK rose by 23% to £301m in the past four months and the international operation achieved 32% to £489m. After the enormous hiccup of three profits warnings in 2014, Asos has become a remarkably consistent machine. If you caught the bottom of the shares that year you paid £20; now the price is a shade above £70.

The big risk is that capital is spent badly. The investment will be close to £220m this year, including the construction of a $40m warehouse in Atlanta in the US. But that life’s when you’re trying to be “the world’s leading fashion destination for twentysomethings”. Come back in 10 years to learn whether the goal was achieved – but the ambition looks increasingly credible.

 

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Apprentice firefighters to be recruited in Nottinghamshire

A new cohort of apprenticeship firefighters will be recruited in Nottinghamshire as part of plans to build its ranks.

Nottinghamshire Fire and Rescue Service has approved plans to begin training new apprentices – with the first batch to be enrolled on the course this autumn.

So far the exact number of likely apprentices has not been announced, but the fire service estimates around 24 new recruits.

The funding for each firefighter apprentice has been set at £12,000 per trainee over a two year programme. This does not include salary costs.

Tracy Crump, head of people and organisational development for the fire service in Nottinghamshire, said: “A new operational firefighter apprenticeship has now been approved – it is intended that the first cohort of operational apprentices will commence in the autumn of 2018, following a competitive selection process.

“The new recruits will be paid at national firefighter (trainee/development) rates during their training period.

“After a two-year programme, and having successfully passed a mandatory end-point assessment, the apprentices will be appointed to competent firefighter roles.”

A report on the new apprenticeship firefighters is set to be discussed on Friday, January 26, at the Fire HQ in Arnold.

The report says that public sector employers have been set a target of 2.3 percent of the workforce being new apprenticeship starters.

It says that since the service has not appointed to whole-time operational roles during 2017-18, and has only appointed to one apprenticeship role in finance, the service will not have met this target in the current financial year.

However, the target extends over four years, between 2017 and 2021, and the fire service says it is possible to “aggregate apprenticeship starts between years” and means that “any failure to meet the target in one year can be addressed in future years.”

The report also says that following discussions with Nottingham College, the service will be seeking to establish other apprenticeship roles within support functions.

A spokesman for Nottinghamshire Fire and Rescue Service said: “In terms of the kind of people we’re looking for – we want people from all backgrounds – people who can work as a team to serve their community through various roles and people who may not have already thought of a career in the fire and rescue service.

“Firefighters have a much broader job than just firefighting now – they do a lot of educational visits whether in the home, workplace or school – and this requires a wide range of skills.

“They would have to be 18 plus on the date the training course starts. It’s not due to any recruitment struggles.”

The fire service says the money to fund the project is coming from its standard staffing budget.

The training will initially take place at the Service Development Centre in Ollerton, with the second stage of training taking place at one of Nottinghamshire’s station.

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Apprenticeship levy is not working, employers say

The government’s new apprenticeship levy is yet to increase the number of people being trained, according to official figures released on Thursday.

There was 114,000 apprenticeship starts reported so far for the first quarter of the 2017-18 academic year.

That compared with 155,600 for the same period in the previous academic year.

Employers’ groups said the government had failed to act on mounting concerns about changes to the apprenticeship system.

They are concerned about the cost to business of the apprenticeship levy, which was introduced in April 2017.

The Department of Education said the levy and other changes were likely to have affected the number of apprenticeship starts and participation last year.

The Institute of Directors said many employers were still struggling to comprehend how the system was meant to work.

“Today’s figures are a warning for the government, as it becomes increasingly unlikely that they will meet their three million new starters target,” said Seamus Nevin, the IoD’s head of policy research. “The levy is the right idea, but the system is ripe for reform.”

Verity Davidge of the EEF, the manufacturers’ organization, said: “It is clear the apprenticeship levy and wider reforms aren’t working and need a radical rethink. The government must listen to business concerns.”

The apprenticeship levy looked fine in principle. Its implementation has been met with howls of protest from industry and declining numbers of people starting courses.

The levy is a tax on large companies intended to pay for training at smaller companies. Large firms hate it, claiming it is no more than an added tax and is finding ways of claiming the money back to spend on other training courses.

Small firms find the system complicated and say the government has failed to provide anything like enough approved courses for them to use.

Ministers say these are teething problems. But at a time when the government is desperately trying to improve skills and productivity by increasing the number of apprentices, the opposite is happening.

It seems increasingly unlikely that the government can hit its target of three million new apprenticeships by 2020.

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Timothy attacks Greening over apprenticeship and T-level troubles

Nick Timothy, Theresa May’s former chief of staff, also warns that institutes of technology risk becoming no more than ‘rebadged further education colleges’
The prime minister was right to sack Justine Greening from her post as education secretary, Theresa May’s former chief of staff has claimed.

Writing for The Daily Telegraph, Nick Timothy argued that Ms. Greening had been “unpopular with officials”, and had “frustrated reformers, and she exasperated the prime minister”.

“Charged with making Britain ‘the world’s great meritocracy’, she put the brakes on policies that work, like free schools, and devised bureaucratic initiatives of little value. She made Nicky Morgan, a managerial education secretary, resemble Michael Gove, education’s great radical,” said Mr. Timothy.

He pointed out that the introduction of the first T levels had been delayed by a year to September 2020, and said institutes of technology risked “becoming rebadged further education colleges”. “There will be a national retraining scheme, but it must be ambitious to get ahead of the unemployment that will be caused by new technology,” he added. “The apprenticeship levy is welcome, but there are problems with delivering apprenticeships and training.”

‘Little difference’ He wrote that while many graduates emerged from university with good degrees, others came out with “a costly qualification that makes little difference”. Mr. Timothy added: “On average, they will graduate with debts of £50,000, the highest in the world. Those who do not go to university – still more than half of young people – are neglected by a system guilty of institutionalized snobbery.”

Mr. Timothy said that Ms. Greening had blocked proposals to reduce tuition fees and refused to hold a proper review of tertiary education. He stressed that he played no role in her losing her post, however.

Responding to Mr. Timothy’s column, former universities minister Jo Johnson took to Twitter, saying that Ms. Greening had “supported me in every single reform we undertook of our universities, was a terrific colleague and faultlessly loyal”.

Leading figures in the further education sector also reacted with disappointment to the departure of Ms. Greening.

The prime minister’s official spokesman said: “Nick Timothy left Downing Street more than seven months ago and he doesn’t speak for the prime minister or for the government.”

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More than half of employers currently paying the apprenticeship levy want it replaced with a training levy

CIPD survey of employers warns of unintended consequences as nearly half (46%) of employers paying the levy expect their organisation to simply re-badge existing training.

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• Among employers who currently pay the apprenticeship levy, 53% would prefer a training levy, compared with just 17% supporting the apprenticeship levy in its current form.
• Four in ten (40%) levy-paying employers say it will make little or no difference to the amount of training they offer.
• Nearly half (46%) of levy-paying employers think that the levy will encourage their organization to rebadge current training activity in order to claim back their allowance.
• More than a fifth (22%) of all employers still don’t know whether they are liable to pay the levy.

More than a half (53%) of employers who pay the apprenticeship levy want to see it replaced with a training levy, according to new research by the CIPD, the professional body for HR and people development. Among those already paying the levy, just one in five (17%) support the existing system.

The survey of more than 1,000 employers also shows that nearly half (46%) of levy-payers will be encouraged to simply re-badge current training activity in order to comply with the new regulations. Among that group, more than half (52%) will re-badge existing training activity into level 2 apprenticeships, equivalent to five GCSEs.

In addition, a fifth (19%) of levy paying firms, including 35% of SMEs, don’t plan to use the levy at all to develop apprenticeships, but will simply write it off as a tax.

Commenting, Lizzie Crowley, skills adviser at the CIPD, said:

“Our research shows that the straitjacket of the apprenticeship levy is forcing many firms to re-badge a lot of their existing training as apprenticeships, as they seek to claw back the levy they pay. In many instances this is not adding any additional value and is creating a lot of additional bureaucracy and cost. Apprenticeships are extremely important, but other forms of training are equally valuable and often more flexible and better suited to the needs of organisations. A move to a more flexible training levy would have the effect of continuing to prompt greater employer investment in skills, including apprenticeships, but in a way that is much more responsive to employers’ needs.

“Another side effect of re-badging is that an increasing proportion of apprenticeships are going to existing and often older employees, including already well-qualified managers, meaning fewer are available to help young people make the transition from education to the workplace – the original purpose of apprenticeships.”

The research also found that more than a fifth (22%) of employers still don’t know whether they are paying the apprenticeship levy, and one in eight (13%) who know they will have to pay have still not calculated what the levy will cost them.

The findings, from the CIPD report ‘Assessing the early impact of the apprenticeship levy’, come after official government figures showed a decline in the number of apprenticeship starts, with just 48,000 new apprenticeship starts between May 2017 and July 2017, a 59% drop on the same period in 2016.

Crowley continued:

“Evidence from our report and the latest official statistics suggest the levy will also continue to drive the creation of far too many Level 2 apprenticeships, which offer much poorer returns to individuals in terms of future wages and often provide limited progression opportunities.

“The Government needs to seriously review the levy to ensure it is flexible enough to respond to employers’ needs and to drive the greater investment in high quality training and workplace skills needed to boost UK productivity.

“There also needs to be much better support for small and medium sized firms (SMEs), both for those that pay the levy and those that don’t, to help them to design and implement effective apprenticeship schemes. Our research shows too many SMEs are either not planning to use levy funding to invest in apprenticeships or are planning to write the levy off as a tax.”

In order to ensure that the apprenticeship levy increases both the quantity and quality of apprenticeship starts, the report recommends that the Government:

• Reforms the apprenticeship levy into a more flexible training levy
• Runs an awareness campaign to promote the levy and its benefits to businesses across England.
• Invests £13m a year to provide HR support to small businesses in order to give them the capability to respond positively to Government initiatives such as the apprenticeship levy.
• Commissions an urgent review of apprenticeship standards, carried out by the Institute for Apprenticeships and Technical Education in order to ensure that they are providing quality learning and education.

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Apprenticeship levy is ‘at breaking point’

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The controversial apprenticeship levy is facing a growing backlash from businesses, with companies finding a well-meaning policy is being strangled with red tape.

Many are complaining the funds raised do not cover training costs and the levy has, in effect, become just another business tax. Launched in April last year, the levy aims to raise £3bn a year to fund better training.

Some companies say the maximum allowance of £27,000 per apprentice does not cover the cost of complex or high-level apprenticeships, while others say they will never get out as much as they pay in.

Other problems listed by businesses – especially smaller ones – are that it is too difficult to navigate, and that training programmes have not been certified so apprentices cannot be sent on the required courses.

“The levy is nothing but a tax,” said Sir John Timpson, chairman of high street cobbler chain Timpson. “The only way to get money back is a tortuous process of changing your training programme to fit government guidelines.”

In the image: Sir John Timpson, chairman of the eponymous high street chain, has described the levy as nothing but a tax on business CREDIT: REX

The claims come as the education select committee prepares to wade through industry’s views on the levy, which requires all employers with an annual wage bill of £3m or more to pay 0.5pc of their staff costs into an apprenticeship fund topped up by the government.

In November, the committee launched an inquiry into apprenticeships and training, with the levy widely blamed for a collapse in the number of people becoming apprentices.

Government data showed that in the May to June quarter, covering the period when the levy came into effect, apprenticeship starts plunged 59.3pc to 69,800. The drop raised questions over the Government’s target of 3m people starting apprenticeships by 2020.

“In many cases the regulator hasn’t yet approved the courses people are already being trained on, meaning that firms are paying twice – once for the training and once for the levy,” he said.
EEF described the situation as “at breaking point”. Verity Davidge, head of education and skills at the manufacturing trade body, added: “Some employers have stopped training because they can’t buy in the courses they want, and others have stopped recruiting. If a collapse in the number of people starting apprenticeships isn’t enough to make the Government realize the levy is not working, I don’t know what is.”

Paul Everitt, head of aerospace trade body ADS, said: “The pitch for the levy was that those already providing high-quality training would be no worse off. However, we’re seeing many large businesses, which already spend significant sums on training, handing over far more than they get back.”

The British Retail Consortium – whose members include the “Big Four” supermarkets and huge workforces mean they are likely to be among the largest contributors to the levy – also hit out at the current system.

Recent figures put BRC members’ levy contributions at £160m a year and Fionnuala Horrocks-Burns, the group’s employment and skills adviser, said some retailers are “writing the levy off as a tax”.

“If nothing is done to improve the situation then anger will rise,” she said. “We want the levy to work but in reality, the biggest payers are not going to get their money back.”

A spokesman for the Department for Education said: “Feedback we have had from levy payers shows they are planning to increase their demand for apprenticeships to ensure they have the right skills in their workforce to grow their business and boost their productivity.

“Government will continue to work with employers on how the apprenticeship levy can be spent so that it works effectively and flexible for the industry, and supports productivity across the country.”

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KPMG launches digital degree apprenticeship

KPMG has launched a new digital degree apprenticeship, aimed at preparing the next generation of tech experts

The accountancy firm said the apprenticeship, called KPMG360° Digital, will be a four-year programme combining on-the-job work experience with the opportunity to gain a BSc degree from BPP University in digital and technology solutions.

Students will not be required to pay any fees as the degree is fully funded by the firm, and they will be earning a salary at the same time.

The programme will be based in London, Manchester, and Leeds, where students will have a chance to work across the firm’s technology solutions, cybersecurity and forensic services.

They will get the chance to work on new technologies such as cloud, data analytics, and artificial intelligence alongside KPMG’s experts.

During the first two years, apprentices will undertake an induction programme and will have regular training sessions. They will also rotate between different areas of KPMG’s technology function while beginning the digital and technology solutions degree.

In the third and four years, students will choose from a range of specialisms, such as IT consultant, business analyst, network engineer, cyber security analyst, software engineer or data analyst.

Those who are successful will work towards a permanent role at the end of the programme.

Anna Purchas, head of people for KPMG in the UK said, “For those joining the KPMG360° Digital degree apprenticeship, the programme allows trainees to not only gain a degree but also to acquire valuable on the job experience. In addition, we provide learning and development opportunities which are essential for both personal and professional growth.

“Technological change provides an opportunity to enhance the services we offer, but this cannot be done unless the skills of our workforce match the investment we are making in new technology.”

KPMG said there are vacancies available in Leeds and Manchester for a September start.

The KPMG360° apprenticeship scheme was first announced in 2015, initially offering 110 places across Birmingham, Bristol, Glasgow, Leeds, London and Manchester offices. The programme later expanded with KPMG360° Digital, KPMG360° Business Services, and KPMG Discovery.

KPMG announced in September it increased its apprenticeship hires by 40%, after recruiting 181 new apprentices in 2017.

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