Apprenticeship levy could cost sector £100m

The levy, designed to fund a new wave of apprenticeships, would see large employers contribute the most, with an as yet unannounced arrangement to be put in place for smaller businesses.

Simon Tarr, chief executive of People 1^st​, said: “It’s our concern that without sufficient input from the very businesses this levy is set to affect, some of the suggestions made in the government’s consultation could result in a complex and unmanageable system over which employers will have only limited control.”

The Confederation of British Industry (CBI) has suggested the move will see employers contribute 0.5% of payroll, regardless of whether they engage with new apprenticeships or not, which People 1^st​ said could end up costing sector businesses in excess of 100m.

Positive​

Tarr added: “Figures suggest that employing apprentices can boost retention by up to 77% and have an extremely positive impact on the bottom line, yet fewer than 10% of businesses are using apprenticeships.

“If the levy is implemented and managed appropriately, this represents a huge opportunity for the industry to build a pool of talented staff that will help address key challenges including productivity and retention.”

With public consultation set to run until Friday 2 October, the charity said it was important that the hospitality industry be well represented to government.

Value​

Matthew Nason, head chef of Top 50 Gastropubs​ finalist pub the Jack in the Green, Devon, currently employs three apprentices.

He said: “Apprentices are excellent value and bring a youthful vibrancy to the industry that we will undoubtedly see the benefits of in the future.

“You need a lot of help to run a busy pub and you have to adapt and make the best of the situation you find yourself in – you can’t afford to have a kitchen full of sous chefs making £30,000 per year.”

Nurtured​

Nason said apprentices needed to be nurtured and given a perspective on the industry that would make them want to return to it.

“They’re just kids so let them be kids to a degree. Teach them to work hard but give them time to recover and give them enough perspective – this is a long haul, not a short term fix. If you want an easy life, this isn’t it, but you can come and be part of something exciting if you want to,” he added.

“Don’t put [apprentices] in a scenario where they’re going to fail. Give them the tools to succeed. If you’re getting through 10 or 20 apprentices a year, you’re doing something wrong.”