Apprenticeship Levy is hampering industrial growth, warns chair of UK Metals Council

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An out-of-date Apprenticeship Levy scheme is failing to address key labour shortages in the workforce at the expense of growth in manufacturing.

Brandauer/Yamada

This stark warning has been made by UK Metals Council chair Rachel Eade MBE, who is calling on the government to review the current system, urging the removal of unnecessary bureaucracy and ensuring that entry level apprenticeships benefit from the same level of funding as higher level qualifications.

According to Eade, over 10,000 jobs are currently available across UK foundation industries with little sign that these positions will be filled because a complicated training landscape is putting off training providers, companies and young people looking to enter industry.

Eade added that nearly £750m raised under the Levy last year was unspent and returned to the Treasury.

A letter on behalf of the 12 trade associations the UK Metals Council represents has been sent to ministers and MPs to highlight the issue and suggest a resolution.

“I’m not sure how we’ve got here, but we’re in a preposterous situation where employer funds are not being used for the intended purpose of upskilling staff from Level 2 upwards,” Eade said in a statement.

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Apprenticeship Levy