CIPD warning | 'Worrying unintended consequences' of Apprenticeship Levy highlighted in new report

New evidence and analysis by the CIPD, working with Youth Futures Foundation, reveals worrying unintended consequences of the Apprenticeship Levy on apprenticeship provision and skills development since its introduction.

The new report ‘Balancing act: Youth apprenticeships and the case for a flexible skills levy’ includes a survey of more than 2,000 organisations. It finds most employers believe that apprenticeships should be primarily used to support young people entering the workforce. However, the survey evidence reveals that the current levy system is undermining this ambition and is instead incentivising employers to rebadge training for existing staff as apprenticeships so they can claim back funding.