Apprenticeship levy comes under fire from trade
The proposals are part of the Government’s plan to increase the number of apprenticeships in the UK to three million and help employers choose and pay for training.
The levy will apply to larger employers across the UK but there is some debate as to which companies will be liable for the fee, with the British Beer and Pub Association arguing that only companies with over 250 employees should be made to pay.
Chief executive Brigid Simmons said: “Apprenticeships are vital for the industry. We need the new levy system to provide flexibility to allow the large number of apprenticeships offered in our industry to develop and grow, so we need legislation that encourages this process but it not burdensome for smaller businesses.”
The Association of Licensed Multiple Retailers added that the levy could hamstring investment in employee development and took a ‘one-size-fits-all’ approach.
According to the ALMR, per-employee investment in training has fallen by nearly 50% in the last year; a problem chief executive Kate Nicholls says will be exacerbated by a levy.
She added: “The Government’s proposed levy focuses on quantity, not quality and could undermine the government’s own objectives if businesses end up paying out more than they can generate in apprenticeships.”
Tim Hore, licensee at the PMA’s Best Partnership pub the Victoria Inn in Salcombe, said that apprenticeships were an important part of his business.
“We have three or four apprentices and they’re very much a part of the pub. We look to local colleges and there’s one who is just starting his second year with us in the kitchen. Having good apprentices is a matter of looking after them. You can’t pay them the apprenticeship wage - it’s not very much at all.”
Sector skills council People 1st added that the levy could create a ‘complex and unmanageable system’ and end up costing the industry £100m.
The brewing and pub sector has significantly increased the number of apprenticeships it offers in recent years, with pub companies like Mitchells and Butlers and Greene King leading the way.
