Businesses remain in the dark about how best to utilise the Apprenticeship Levy, according to findings from the British Chambers of Commerce (BCC) in partnership with Middlesex University London.
Nearly a quarter of businesses that pay the Levy said they have no understanding of it or don’t know how they will respond to it. Similarly, of those who do not pay the levy but can still apply to use the funding, 66% have no understanding or don’t know how they will respond to it.
‘Our survey shows that many firms are still unaware of the Apprenticeship Levy and how it will impact on their business,’ commented Jane Gratton, Head of Business Environment and Skills at the BCC. ‘With many companies across the country facing critical skills shortages, more information and support is required to ensure businesses continue to invest in training.’
The research revealed that around half of organisations view the levy as an additional cost, with 56% not expecting to recover any or only a portion of their payment, compared with 36% who expect to recover all or more of their payment.
Gratton explained that for many businesses the Levy can feel like an additional employment tax, and that it is deflecting training budgets away from other important training needs.
‘Firms need greater flexibility on how they can use their Levy monies and a system that is fully operational as quickly as possible, is simple and efficient, and that enables them to access good quality training,’ she added.
