Document Abstract

Addressing employer underinvestment in training: the case for a broader training levy

Makes a case for reforming the apprenticeship levy and increasing investment in workplace skills. Provides an overview of what’s been happening with training in the UK, highlighting that there has been a long-term and substantial decline in employer investment in training over past decades, employee participation in workplace training is declining, and a substantial portion of the training done is only induction or compliance-based. Analyses the impact that the apprenticeship levy and reforms have had so far, suggesting that the current arrangements are not working in the way that was initially intended. Sets out the case for a broader training levy to: support apprenticeships, as well as other forms of accredited learning; and fund the creation of a sustainable, long-term fund to address local skills supply and demand issues. Explains that a broader training levy would involve widening the scope of the levy to all employers with more than 50 staff, at a rate of 0.5% of payroll for small and medium-sized firms and 1% for those with 250 or more staff. Notes that the IPPR estimated that reforming the levy in this way would raise double the amount of the apprenticeship levy, an estimated £5 billion.

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Publication information

Author:
CIPD
Year:
2019
Pages:
22
Ref No:
B53458
Source:
Chartered Institute of Personnel and Development (CIPD)

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