Leading think tank says all-industry apprenticeship levy could backfire
The government鈥檚 target of delivering three million apprenticeships by 2020 risks being 鈥減oor value for money鈥�, a leading think tank has warned.
The Institute for Fiscal Studies said the target - which will be funded by an all-industry levy coming into force in April - could devalue apprenticeships by turning them into 鈥渏ust another term for training鈥�.
The report warns the government has 鈥渇ailed to make a convincing case for such a large and rapid expansion in apprenticeships鈥�.
The study warns of a potential negative impact on the quality of other training types re-branded as apprenticeships, and predicts the added cost of the levy could push down wages for other employees.
It also cautions the unintended consequence of the policy could be to deter employers from paying to train their own employees, creating 鈥渃onsiderable risks to the efficient use of public money鈥�.
The education department said standards are 鈥渞igorously checked鈥�.
The criticism comes as the construction industry鈥檚 own training body the CITB comes under intense scrutiny this year.
The CITB earlier this month unveiled plans to cut its levy by almost a third, as part of plans to win round large firms angered by the prospect of having to pay two training levies from April, with 鈥渄ouble paying鈥� set to impact some 900 large construction firms.
The CITB鈥檚 statutory levy is up for renewal this autumn, with thousands of construction firms set to vote on whether or not to continue it.
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