Since its introduction in 2017 there has been a lack of transparency as to how monies raised through the apprenticeship levy are spent. This has led many employers and employer groups to claim that a significant proportion of the levy they pay is ’wasted’.
Of course, money raised from levy-paying employers is also used to fund apprenticeship provision for non-levy-paying employers. Employers have always needed to understand that. Nevertheless, there is some validity in the claim that some of the income raised by the levy is not being spent on apprenticeship but is instead being retained by or returned to the Treasury.
In a recent article, FE Week reported that last year £415 million raised through the apprenticeship levy was not allocated to apprenticeships, but instead “pocketed”by the Treasury.
These figures are telling. Of course, they do change year on year, but the constant is that the Treasury always wins. So, what needs to happen?
