Prime Minister David Cameron will today outline a package of radical plans to increase the number of quality apprenticeships across England – including the introduction of a new apprenticeship levy.

Employers across the country will today be asked for their views on the introduction of the levy which is expected to be operational by April 2017 and designed to increase investment in training and apprenticeships.

Other steps outlined today, which form part of the government’s pledge to support 3 million apprenticeships by 2020, include a requirement to take a company’s apprenticeship offer into account when awarding large government contracts and publishing new ‘industry standards’ so that apprentices have the skills that companies need.

Skills Minister Nick Boles commented:

“Skilled people are the lifeblood of a strong economy but for too long UK businesses have invested too little in developing their employees’ skills to meet the demands of a competitive, global market. The apprenticeship levy will ensure that businesses invest in skills and training, and will act as a much needed shot in the arm for the country’s productivity.”

The plans outlined today include:

Apprenticeship levy - Employers are now being urged to give their views on plans for an apprenticeship levy to boost investment in apprentices and skills training and make sure it meets their needs. Under the proposed approach employers who put in funds will have direct spending power over it.

Levy systems already operate in over 50 countries, including Netherlands, Denmark and South Korea, and will ensure every larger company plays their part in investing in the future generation of apprenticeships. The levy will help cement the government’s aim to build a world class apprenticeship system, led by employers.

A full consultation on the implementation of the levy is being launched today.

Major changes to government procurement

From 1 September 2015, all bids for government contracts worth more than £10 million must demonstrate a clear commitment to apprenticeships. In particular, employers’ bids will be reviewed in line with best practice for the number of apprentices that they expect to support. The move is aimed at widening the scope of businesses offering apprenticeships, and with more than £50 billion a year spent on government procurement contracts, will provide a significant boost in apprenticeship numbers.

‘Industry standards’ for quality apprenticeships

In the latest of a series of steps to drive up the quality of apprenticeships, 59 new apprenticeship standards developed by Trailblazer groups of employers and businesses have been approved today.

The ‘industry standards’, which cover a range of professions including nuclear engineers, fashion assistants, live event technicians, personal trainers and welders will outline the skills apprentices in these roles are expected to have to meet the needs of employers.

The first 8 trailblazers began in October 2013 and there are now over 140 Trailblazer groups that so far have collectively delivered or are in the process of delivering, over 350 standards.

The 5% Club

The 5% Club is a business-led network of employers who commit to getting at least 5% of their workforce on apprenticeships and training schemes within 5 years. The network is growing in popularity and is announcing its 100th member – Sellafield. It joins other leading employers KPMG, Vision Express, CBI and Kier which together train around 36,000 young people.

Commenting on the proposals, Professor Alison Wolf, Director of Public Services Policy and Management at Kings College said:

“This country once had, and then lost, an excellent apprenticeship system. I am delighted that the government is introducing a levy. In my view, this is a necessary step towards recreating high quality apprenticeships across the country, based on the needs of our economy, engaging and responding to employers, and able to contribute to current and future productivity in an effective way.”

However, a leading infrastructure organisation has expressed concern about the potential impact of the levy on the construction sector.

Civil Engineering Contractors Association Chief Executive Alasdair Reisner said:

"Over the past few years, the construction industry has been playing its part in providing high quality jobs and training for young people. This is reflected in our most recent research which shows a 50 per cent increase in the number of  CECA member companies recruiting apprentices over the past three years, with the number of apprentices recruited increasing by 91 per cent. Furthermore, our members forecast a further 25 per cent increase in apprentice recruitment in the coming 12 months.

"Given this success we are concerned about the impact of the proposed UK wide levy to fund apprenticeships. While our industry is familiar with the concept of levy-payment, we struggle to see to how these proposals will work alongside the existing CITB levy which funds training and development across a wide range of activities for both new recruits and up-skilling of the existing workforce."

Deadline for responses to the Apprenticeship Levy consultation is 2 October 2015. Click here to access the consultation online.