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Friday, 21 August 2015

Will The Apprenticeship Levy Benefit SMEs?

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The UK government is still 100% committed to the planned apprenticeship levy, despite concerns from business leaders, David Cameron said this week.

The Prime Minister has said the levy will help create 3 million apprenticeships across the country and will make larger employers contribute funding to apprenticeship training. 

A new series of industry standards will be introduced for apprenticeships in a varied range of professions from IT, engineering and transport to fashion. 

However, the Confederation of British Industry (CBI) has voiced concerns that it would not deliver the skilled youth businesses would want, and it would do very little to help SMEs

CBI said: "With an apprenticeship levy for larger employers set to be introduced following the Budget, the CBI is concerned that while it may fund more apprenticeships to meet the Government's target of three million, it will not deliver the high-quality, business-relevant training needed, and do little to help small or medium-sized businesses.”

David Cameron responded: "The greatest asset any employer has is their workforce. And by investing in them, they are investing in the success and future of their business. As a One Nation Government, we are committed to supporting three million quality apprenticeships over the next five years - to help strengthen our economy, deliver the skills that employers need and give millions more hard-working people financial security and a brighter future.”

The government has set an extremely high target to reach. Should they focus on creating quality apprenticeships over volume? Would the scheme be more likely to benefit small businesses if this were the case? 

360ict provides managed IT services and emergency IT support for SMEs in central London and the south-east, including Bromley and Croydon. For more advice on gaining competitive advantage as a mid-sized company, give us a call on 0208 663 4000 or head to our website.


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