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Report: Assessing the early impact of the apprenticeship levy – employers’ perspective

The introduction of the apprenticeship levy has led to a fundamental change in the way that employers interact with the apprenticeship system. This report looks at the early impact of the levy, how it has affected investment in these schemes and what it means for wider learning and development programmes.

Impact of the apprenticeship levy 1

Key findings:

  • More than a fifth of the employers surveyed still don’t know whether they are liable to pay the levy. Larger employers were more likely to report that they don’t know whether they will pay it or not (30 per cent) – while one in eight of those who will pay the levy report that they have still not calculated what it will cost them.
  • Although 73 per cent of organisations intend to use the levy to expand or develop their apprenticeship programmes, more than a quarter do not have plans to do so and more than a third of SMEs plan to write the levy off as a tax.
  • Nearly half of employers reported that the levy will make little or no difference, or they will reduce overall training investment. Just 45 per cent of levy-paying organisations believe the levy will have the effect of increasing the overall amount of training they offer.

The CIPD has made a number of recommendations in its report, including suggesting that the government should consider broadening the apprenticeship levy into a wider training levy.