AELP responds to open consultation document

The association of employment and learning providers (AELP) has given its opinion towards the governments open consultation document, stating that the levy should be delayed by a minimum of three years so businesses can increase their apprenticeship capacity.

On August 21st David Cameron outlined his opinion regarding the government’s exactly how his government intends to create three million apprenticeships by 2020.

One of the main ways in which he plans to do this is by getting the public’s opinion on the apprenticeship levy, which intends to tax large businesses by 2017 in order to fund the new injection of apprenticeship opportunities.

The open consultation document has been created by the Department of Business, Innovation and Skills (BIS).

Specifically, the public will be consulted on how to pay for the levy, the way in which the levy is divided between UK businesses, how to ensure that employers receive an apprentice and how to give employers control of apprenticeships.

What the AELP says

A full AELP statement has been released concerning the open consultation document. The association immediately praises the government for launching the consultation, lauding their attention to detail and awareness of the potential risk involved with the apprenticeship levy.

The AELP however, advised that the levy should be delayed by at least three years, so that ‘‘employers and providers can build more capacity into the system over the next three or four years before the levy starts.’’

The association also raises the issue of SME involvement in regards to the levy, explaining that it’s important to find out how SMEs will fund the levy.

‘‘The consultation remains committed to the principle that they should have to make a cash contribution and while AELP has always supported more employer contributions, we do not believe that they should be managed through mandatory cash contributions.’’

‘‘An employer meets the vast majority of the cost of the programme already through salaries and other training costs, so we feel the government should set out the rate at which it is prepared to subsidise the full cost of apprenticeships by age and standard.’’

This statement echoes a similar response given by the Confederation for British Industry (CBI), which recommended that SMEs be completely exempt from contributing to the levy.