Apprenticeship Levy welcomed by parents
Report released alongside Budget urges employers to invest
Just 16% of parents believe employers doing enough to provide apprenticeships
A CMI white paper published on 16 March reveals the scale of parental support for the Apprenticeship Levy.
The Age of Apprenticeships, presented by CMI to an audience of leading employers and higher education institutions in Manchester today, reveals that just 16% of parents believe that employers are doing enough to provide apprenticeships and 72% support the Levy. In a separate survey of CMI members, two in three managers (67%) also backed plans for the Levy.
Skills Minister Nick Boles said:
“As every good business knows, skilled people lie at the heart of success. That’s why we’re introducing the Apprenticeship Levy, which will give employers the power to build the highly skilled workforce they need.
“Apprenticeships give young people the opportunity to choose the path that’s right for them while helping to drive up productivity. This is why we have been showing a real commitment to offering high quality degree apprenticeships – they will help give young people the chance to succeed like never before.”
The competitive job market, alongside an ongoing skills shortage, has driven an interest in combined education pathways, such as the new Chartered Manager Degree Apprenticeship. Parents are keen to see employers contributing more to the funding of such training, with 70% agreeing that larger employers should take on apprentices by law and 76% calling for them to pay for their training and wages.
The Government is committed to reaching three million apprenticeships by 2020, paid for through the Levy which comes into force in April 2017. Employers with wage bills over £3 million will contribute 0.5% of their payroll.
The value of this investment in apprentices for employers is clear. Recent research shows that 71% of apprentices remain with the same employer after joining, and businesses employing apprentices see a £214 per week increase in productivity. Chartered Managers add an average of £391,000 of value to their employers.
Ann Francke, CEO at CMI, commented:
“Savvy parents are recognising the importance of their children getting their foot on the career ladder at an early age. On-the-job experience and a pathway to professional status are recognised as a surer route to future success than the jobs lottery that many graduates face today.”
Parents are becoming more mindful of long-term employment prospects and are recognising the significant benefits their child would gain from taking a Degree Apprenticeship. The majority surveyed would favour a Degree Apprenticeship with a blue-chip company over a traditional degree from Oxbridge.
The Chartered Manager Degree Apprenticeship, which was launched in November 2015, is now offered by major companies including Serco, Nestlé, Barclays and Pizza Hut.
Despite the high levels of support and approval as well as backing from the Prime Minister David Cameron, only 13% of parents are currently aware of such Degree Apprenticeships. Less than half of parents are confident in finding the right information about apprenticeships to offer their child the best advice.
Kath Austin, People and Marketing Director, Pizza Hut Restaurants, commented:
“The focus the Government is putting on apprenticeships is a hugely positive step. At Pizza Hut Restaurants we’re extremely proud of our apprenticeship programme and the role hospitality can play in developing young people’s skills and abilities. It’s important to us to not only develop people so they have great skills for their job, but to give them professional skills for life.
“We developed our Chartered Manager Degree Apprenticeship with Manchester Metropolitan University, and it’s the first of its kind in the hospitality industry. It’s recognition of the role hospitality plays in employment in this country, and signifies the importance we place on developing and retaining skilled young people in our business. Apprenticeships are a fantastic alternative to the traditional university path, we believe strongly in offering all our employees the chance to develop to any level they want to achieve.
“The Government’s decision to drive apprenticeships to the fore of business practice will only benefit everyone.”
 National Apprenticeship Service
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Notes to editors
- Figures drawn from the White Paper will be discussed at CMI’s Chartered Manager Degree Apprenticeship event on Wednesday 16th March in Manchester. For more information see: www.managers.org.uk/degreeapprenticeships
- The Chartered Management Institute (CMI) is the only chartered professional body for management and leadership, dedicated to improving managers’ skills and growing the number of qualified managers.
- Our professional management qualifications span GCSE to PhD equivalent levels, including the unique Chartered Manager award, which increases earnings potential and improves workplace performance.
- We provide employers and individual managers with access to the latest management thinking and with practical online support which helps them embrace change, create high performing teams and keep ahead of the curve.
- With a member community of 120,000+ managers and leaders, we promote high standards of ethical practice through our Professional Code of Conduct, and help managers build their expertise through online networks, regional events and mentoring opportunities.
About Populus survey
- Populus surveyed 1,003 parents online between 9th and 16th February 2016 to explore parents’ attitudes towards apprenticeships.