Semta has welcomed the clarity on the apprenticeship levy given in the Government’s Autumn Statement and Comprehensive Spending Review.
The not-for-profit employer-led skills organisation which represents 146,000 employers in the Advanced Manufacturing and Engineering sector, said it was vital all sides now work together to make sure implementation of the levy is fair, workable and affordable.
Ann Watson chief executive of Semta said “We now know the apprenticeship levy is 0.5% – the first rate suggested by Professor Lady Alison Wolf in her report on vocational education. We will be consulting with the employers we represent and support them in every way we can ahead of its implementation in 2017.
“While £15,000 to offset the impact on employers is to be welcomed it is important to note, with the levy affecting employers with a wage bill of £3 million or more, many SMEs could end up paying the levy and not just the big businesses as has been suggested.
“The detail of how it will work needs to have employers at its heart so we support the creation of a business-led levy group to work out how the levy is put into practice and stand ready to play our part.
“However, Semta firmly believes, supported by the employers we represent, that the AME sector should take full ownership of the levy to help us deliver the 800,000 new entrants we need between now and 2020.
“Semta has recently supported employers in the research and publication of detailed plans as to how to create sustainable models for apprenticeships Apprenticeships for Future – Governance Model Report for AME Sector in conjunction with the Aerospace Growth Partnership, Automotive Industrial Partnership and Defence Growth Partnership.
“Semta is committed to working with the Government and employers to help develop these models and deliver this levy in a fair, effective way. An apprenticeship in our sector provides a direct, rigorous and effective pathway to a career.
“The money is intended to help create more high quality apprenticeships to help the Government meet its target of 3 million new apprenticeships in this Parliament – we need to make sure that is what happens at a rate employers can afford.
“We also welcome the Chancellor’s commitment to continuing industrial partnerships – singling out the vital automotive and aerospace industries – we await the details with interest.”
