The coming boom in apprenticeships

High-level qualifications gained through work will challenge the traditional higher education model.

Four months from now, some 23,000 employers will start to pay the apprenticeship levy―a 0.5 per cent surcharge on annual payrolls over £3 million. The levy will pump an extra £1 billion into the government’s flagship skills programme, on top of the current budget of £1.5 billion. Employers will be able to reclaim the money, plus a 10 per cent government top-up, to fund apprenticeships in their businesses. This will have a significant impact both on the number of high-level apprenticeships and on traditional higher education.

Some critics have voiced concerns that employers are interested only in the money and not in the quality of apprenticeships. However my conversations with employers strongly suggests that this fear is misplaced. Employers are working with colleges and training providers to develop apprenticeships that will maximise the returns on the levy.