Engineering news
The money, which could have provided vital training to fill jobs as the country comes out of lockdown, went unspent in the nine months from May 2020.
The huge amount was revealed by manufacturers’ organisation Make UK, which called on the government to ‘rethink’ how levy money can be spent to boost essential skills.
“The manufacturing sector is ideally placed to help deliver the prime minister’s promise of more good jobs in those left-behind areas of the country, with average wages 13% higher than the rest of the economy and 2.7m jobs already countrywide with a £191bn contribution to national output,” a Make UK announcement said.
In spite of the pandemic, 47% of manufacturers still managed to recruit an engineering or manufacturing apprentice in the last 12 months, with 57% saying they plan to do so in the next year. Almost a third (32%) said they would recruit an apprentice in other parts of their business, up from 20% last year.
Make UK said money should be ‘unlocked’ to train apprentices across all ages in the essential skills needed by industry. Today (10 May), the organisation – backed by the National Manufacturing Skills Taskforce – unveiled a new strategy that could help retain and recruit apprentices in the next 18 months.
“The introduction of the apprenticeship levy four years ago was meant to create a central cash pot so more people could be trained from scratch or upskilled,” the Make UK announcement said. “But with an average four-year engineering apprenticeship costing a business £40,000 to deliver and just £27,000 of that cost claimable from levy funds, the system leaves businesses struggling to pay to train an apprentice, and money is being left unspent.”
Releasing up to 20% of levy funds immediately to help support wage costs could boost apprenticeship numbers, the organisation said, as could the ability to use £500 from the levy pot to fund catch-up learning or pre-apprenticeship training.
The body also called for a temporary extension to the lifetime of levy funds from 24 to 36 months, and for 20% of levy funds to be spent on capital costs to allow companies time to take on more apprentices as economic conditions improve. Finally, it said that a ‘full-scale review’ of the levy should be undertaken by the end of 2022.
“For many manufacturers, apprenticeships are key to unlocking our recovery, and building a strong industrial base in the UK. But they need more flexibility to do this effectively as they themselves are struggling to recover from the Covid crisis,” said Bhavina Bharkhada, senior campaigns and skills policy manager at Make UK.
“With so many manufacturers looking to recruit an engineering or manufacturing apprentice in the next 12 months, apprenticeships in the UK manufacturing sector can address the yawning skills gap we face, and aid the government in its ambition to level up.
“Backed by the National Manufacturing Skills Taskforce, this new strategy proposes a series of targeted recommendations… to help kick-start the country’s recovery.”
Want the best engineering stories delivered straight to your inbox? The Professional Engineering newsletter gives you vital updates on the most cutting-edge engineering and exciting new job opportunities. To sign up, click here.
Content published by Professional Engineering does not necessarily represent the views of the Institution of Mechanical Engineers.