The latest apprenticeship figures, show per year on year drop in starts of 28% for the 2017/18 academic year to June.
Responding to the current, Jamie Kerr, Head of External Affairs with the Institute of Directors, said: “Today’s stats underline that the levy technique are still not even close firing on all cylinders. The ambition of three million starts by 2020 continues to be the remotest of targets.
“Now we have welcomed the ramping up of Government engagement with business concerns, and up to date steps to supply firms more flexibility together with the levy are already one step inside the right direction. Though the work must continue, and we count on further efforts so your reality on the system matches the very first ambition behind the levy.
“What employers need is actually a system more responsive to the demands of individual firms, particularly as skills shortages as well as the shifting labour market trends stop at the top of businesses’ lists of concerns.”
Federation of Small companies (FSB) National Chairman, Mike Cherry, said: “Today’s 28% every year drop is another clear signal how the levy system isn’t lifetime its full potential.
“Big corporations are still incapable of comprehend the levy system and they are failing to offer their unspent levy to small enterprises. This support is necessary for smaller businesses that want to offer apprenticeship opportunities, but might not be able do caused by higher costs the result of the creation of the 10 per cent contribution for training a student.
“The us government must now come clean about its ambitious apprenticeship target of three million starts by 2020 and admit that it must be increasingly searching of sight. We are going to now need to see about 73,000 thirty days as to strike this target.
“Lessons ought to be learnt from your continuing drop in starts and even more has to be carried out arrest the slump which is damaging productivity and compounding already chronic skills gaps.
“The us government should take measures now to make it less difficult and more cost-effective for small firms to fund apprentices. Including extending small businesses incentive, currently only available to firms with less than 50 employees, to everyone non-levy payers which recruit a 16-18 yr old apprentice.”