The introduction of the apprenticeship levy has contributed to the dramatic fall in the number of new apprenticeships, according to figures from the Department for Education (DfE).
Between May and July 2017 there were 48,000 apprenticeship starts, down from 117,800 in the previous academic quarter, a decrease of 59.3 per cent.
The figures are the first to be released since the apprenticeship levy was introduced on 6 April 2017. It requires all UK public and private sector employers with an annual pay bill of £3 million or more to invest in apprenticeship training. It also changed the way that such apprenticeships were funded, with the aim of giving employers more control.
However, the findings suggest that employers are struggling to adjust to the change, with just 21,100 levy supported starts recorded since its introduction.
The DfE report stated: ‘It may take time for organisations to adjust to the new funding system, and so it is too early to draw conclusions based on the number of apprenticeship starts recorded since May 2017.’
Last month, the British Chambers of Commerce found that nearly a quarter of organisations that pay the levy do not have any understanding of it, highlighting that more may need to be done to raise awareness of the scheme.
