Two years later, UK's apprenticeship levy still provides valuable model for workforce innovation paid gradsoflife
found that a fifth of levy-paying respondents planned to simply write off their payments, while nearly a third of large employers were unsure whether they were required to pay the levy in the first place. Overall, the transition to the new levy appears to have had a chilling effect on the whole apprenticeship system, with the total number of English apprentice starts dropping 26 percent from 2016 to 2018.
The levy’s structure is complex, no doubt. Apprenticeships in the UK are available at a variety of different levels, which correspond to the age and educational attainment of the apprentice as well as the complexity and skill requirements of the target job—a growing number of higher-level programs even . Under the levy, each apprenticeship’s maximum funding eligibility is assigned one of 30 different funding bands, from £1,500 to £27,000, according to its level and length.
The levy is only the most conspicuous part of a broader effort to use apprenticeship to address a long-term economic shift towards the service sector and to counteract decades of declining employer investment in job training. In the United Kingdom, like the US, recent apprenticeship policymaking has focused on expanding opportunities in nontraditional occupations and on .
This new model’s success has been mixed, too, amplifying negative reactions to the apprenticeship levy. Some employers find the 20 percent off-the-job requirement excessive and uneconomical for younger apprentices, who tend to be less productive when starting out, or for fields like retail, where there are few options for job-related classroom instruction.
Whatever comes next, the UK’s proliferation of advanced apprenticeships in nontraditional sectors show that the apprenticeship levy shouldn’t yet be written off as a cautionary tale. Policymakers of any country will need to adjust apprenticeship incentives to match the skills needs of employers while delivering quality education and better economic mobility for learners.
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