Agenda item

Impact of Apprenticeship Levy

Minutes:

Further to minute 20 (17/9/19), Paul Smith, Head of Service, Learning, Skills and Employment, introduced a report which the Committee had requested to respond to the following questions:

 

·  Businesses which are paying the apprenticeship levy but which were not actually taking on any apprentices,

·  How this impacted on adult learning opportunities.

 

While the request was to provide information on local businesses eligible for paying the levy but not taking on apprentices, there was no information available regarding specific Wirral businesses. Council officers did not have access to individual businesses digital account system, the portal by which employers paid for apprenticeship training. The Government had not published any reports on individual business use of the levy. However, the report highlighted the impact the apprenticeship reforms had had on local and Liverpool City Region (LCR) apprenticeship numbers.

 

Locally and across the LCR there had not been any identified negative impact or displacement of adult learning opportunities. The Council’s Lifelong Learning Services, funded by the Combined Authority using Adult Education Budget (AEB) funding, had delivered 1,046 course enrolments between September and November 2019 which was in line with planned delivery. Wirral Met College were similar with all AEB funding being committed for this academic year.

 

In response to comments from Members, Paul Smith stated that within the Liverpool City Region, Wirral had been asked to work with the Merseyside Police around their underspend of the apprenticeship levy to help identify and support transition into work for care leavers. He was also aware that the Department for Education were currently considering the effectiveness of the levy.

 

With the addition of a further recommendation, moved by Councillor Foulkes, seconded by Councillor Jo Bird, it was –

 

Resolved –

 

(1)  That the report be noted.

 

(2)  That this Committee supports further close working with employers, Wirral Metropolitan College, other local training providers and the LCR Combined Authority with an agreed objective to increase uptake of apprenticeships and maximise use of the apprenticeship levy.

 

(3)  That this Committee recognises there has been a huge reduction in apprenticeship take up since the Government introduced the Apprenticeship levy scheme. The 3 million new apprenticeships figure by 2020 will not be reached by a long way.

 

That the Government be asked to revisit the apprenticeship levy scheme and set up a consultation with private and public sector businesses to make sure a revised scheme supports the introduction of new apprenticeships particularly at level 2 and 3, that is not to say that the higher level apprentice opportunities and the development of the existing workforce right up to degree level is not valued.

 

It is also important that there is a pathway to a level two apprenticeship for people who have not yet got to the level two attainment level as yet including training and financial support within a workplace setting adhering to the TUC apprenticeship charter.

 

This Committee also recognises the great work achieved by the Liverpool City Region in facilitating unspent apprenticeship levy being channelled into use by SME organisations which are not subject to the Apprenticeship levy – this has helped to give people skills and employment that they would not normally have got.

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