This week, during National Apprenticeship Week, The Telegraph wrote an article examining the apprenticeship levy and its effect on small and medium enterprises (SMEs) nearly ten years after it was introduced in the Conservative Government’s 2015 summer budget.
The apprenticeship levy, introduced in 2017, is a tax on large employers with a wage bill of more than £3 million per year. These businesses must contribute 0.5% of their payroll into a training fund to support apprenticeship programs. However, The Telegraph shares concerns from SMEs, who argue that the funding is not reaching them. Many believe the system is failing to support smaller businesses in hiring and training apprentices.
The Telegraph’s Ella Nunn spoke with ECA Member Ealing Electricians, whose founder, Benjamin Gilbert, expressed frustration over the challenges SMEs face. He explained that, unlike larger companies, small businesses often lack the time and resources needed to manage apprenticeships effectively.
In the article, Andrew Eldred, ECA’s Chief Operations Officer was quoted as saying: “The levy funds pay for the training apprentices are required to do but they don’t support the employment and recruitment of these workers. These costs are easily absorbed by a big company but, of course, it’s more of a challenge for small businesses.
“It feels like there’s sometimes a tendency, at the governmental level, to look at small employers taking on apprentices as altruism.
Actually, it’s an economic exchange with wider financial effects. Small businesses are only going to continue signing up to this system if there’s a return on their investment.”
To read the full article, ‘The system is broken’: How George Osborne’s apprenticeship dream fell apart, click here.
Last updated 13 February 25