At its National Conference, the Association of Employment and Learning Providers (AELP) has responded to ongoing calls for the Apprenticeship Levy to be opened up to allow more flexibility on how it can be spent.
AELP has recognised that employers have argued for more flexibility in the Apprenticeship Levy, but argues for a cautious approach to reforming the levy ensuring apprenticeships remain the primary focus. AELP stress that change should only occur alongside the creation of a separate and guaranteed ring-fenced budget for 98% of employers that do not pay the apprenticeship levy.
In her keynote speech to National Conference, AELP Chair Nichola Hay MBE, outlined how the organisation supports the principle of allowing levy-paying employers a degree of wider flexibility to fund the procurement of high-quality accredited qualifications alongside the core apprenticeship training and assessment. Delivery of these should come from a list of approved training providers and any flexibility needs to be offset with a commitment to non-levy paying employers' ongoing access to funding for apprenticeship training and assessment.
Introducing flexibilities to how the levy can be spent has the potential to impact on the ability of non-levy paying employers – in the main small and medium size employers (SMEs) – to take on apprentices. As a result, AELP is calling for any reforms to also include a separate and guaranteed ring-fenced non-levy apprenticeship budget to support the 98% of employers that do not pay the apprenticeship levy.
