New apprenticeships in the East Riding at the lowest level since reform
The number of apprenticeships started by people in the East Riding has dropped to the lowest level since a Government shake-up of the system, figures show.
HR body the Chartered Institute of Personnel and Development says a national drop in new starts shows the apprenticeship levy introduced in 2017 has “failed on all key measures”.
Department for Education data shows people living in the East Riding started 3,510 apprenticeships in the 2019-20 academic year.
That was down 20% from 4,390 in the previous year, and a 35% fall from the 5,440 in 2016-17, when the levy came into effect.
The DfE cautioned that the latest figures were impacted by the coronavirus pandemic.
But it said the number of apprenticeships started across England in the academic year up to March 22 last year was still 7% lower compared to the same period in 2018-19.
Critics say the apprenticeship levy – a tax larger businesses pay towards a national fund for the training of apprentices – has caused confusion for employers.
The DfE said it will make improvements to the apprenticeship levy in response to employers’ feedback.
Across England that proportion fell from 37% in 2016-17 to 27% in 2019-20.
Peter Cheese, chief executive of the CIPD, said: “On all key measures the apprenticeship levy has failed and is even acting to constrain firms’ investment in apprenticeships and skills more broadly.
“It appears to have achieved the opposite of its policy objectives.”
Chancellor Rishi Sunak announced changes to apprenticeships as part of his Budget, including more cash for businesses for each apprenticeship started.
A new “flexi-job” apprenticeship will also become available for trainees to work with a number of different employers in one sector.
Mr Cheese welcomed the changes but called them “underwhelming”.
Mike Cherry, chairman of The Federation of Small Businesses, which has also been critical of the levy, welcomed the Chancellor’s proposals.
Apprenticeships and skills minister, Gillian Keegan, said: “As we build back better, apprenticeships will play a vital role in helping businesses of all sizes access the skills they need to thrive and making sure people of all ages and backgrounds have the chance to get ahead.”