Amid recent news that apprenticeship figures are still falling, the UK construction firm nmcn is driving demand for apprentices nationwide. More than 10% of employees at nmcn are currently participating in an apprenticeship, a figure that is expected to rise to 12% when the company’s graduate scheme is brought into
The Federation of Master Builders (FMB) have stated that the Chancellor of the exchequer is right to make the Apprenticeship Levy more flexible, in a bid to ensure it works for strategic industries such as the construction sector. That being said, they aren’t convinced his reforms have gone far enough.
Leading apprenticeship provider Develop Training has welcomed news that large employers are now able to transfer their levy funds to other organisations. However, the company cautioned that firms will have to manage the process well to maximise the potential business benefits. It also warned that the move is adding more
BDC 319 : Aug 2024
Amid recent news that apprenticeship figures are still falling, the UK construction firm nmcn is driving demand for apprentices nationwide. More than 10% of employees at nmcn are currently participating in an apprenticeship, a figure that is expected to rise to 12% when the company’s graduate scheme is brought into the apprenticeship levy. “We’re training tomorrow’s talent to be our future. Apprenticeships aren’t a tick box exercise, we truly believe they are creating a legacy for the business. Over the last five years more than 270 of our people have been enrolled in an apprenticeship scheme and in that time we have seen a noticeable shift in the attitudes towards apprentices within the business. There’s been a pull to push shift, previously, managers needed to be persuaded to take on apprentices, now those managers are driving the demand. They see the value and momentum that apprentices can bring,” commented Karen Morris, nmcn’s group HR director. The latest statistics from the government show apprenticeships falling 15% behind pre-levy figures. “The apprenticeship levy has enabled us to open up training opportunities across the business in areas that can directly impact on our business growth right now. So while we’re developing the talent of the future we’re also investing in the business today,” added Karen.
The Federation of Master Builders (FMB) have stated that the Chancellor of the exchequer is right to make the Apprenticeship Levy more flexible, in a bid to ensure it works for strategic industries such as the construction sector. That being said, they aren’t convinced his reforms have gone far enough. “The Chancellor has, in part, listened to the concerns of businesses by making the Apprenticeship Levy more flexible. However, he needs to go much further,” said Brian Berry, Chief Executive of the FMB, and former Head of Uk Public Policy for the Royal Institution of Chartered Surveyors (RICS) as a response to the Chancellor’s speech at the Conservative Party Conference. As it stands 10% of Levy vouchers can currently be passed down through the supply chain from larger firms to smaller ones, but now Chancellor Philip Hammond, has stated that figure should instead be 25%. “This is important, in construction its the small firms that do the bulk of the training while the large firms don’t tend to directly employ or train tradespeople. Since the Apprenticeship Levy was introduced last year, apprenticeships stats have fallen in the construction trades by more than 10%,” added Brian Berry. Given that the construction industry is already suffering from an acute shortage of skills, Brian Berry called this, “very worrying indeed.” He went on to say: “If the Chancellor is serious about ensuing the Levy has the desired effect, and increases meaningful training across all sectors, it should go further and make 100% of the vouchers transferable from large to small companies.” The FMB is non-profit making and independent, it works as a lobbying for members’ interests at both a local and national level. It stands as a source of knowledge, support and advice for members, while offering a range of modern and innovative building services to help members succeed and achieve. Committed to continuously keeping quality high and forever raising the bar on standards, they even offer a free service to consumers titled: “Find a builder.” Operating by constantly lobbying the Government to boost output and raise standards of both safety and professionalism in conduct at all levels, the FMB strive for a fair, safe and well structured construction sector at all times. The FMB is the largest trade association in the United Kingdom construction industry, and represents thousand of firms across England, Wales, Scotland and Northern Ireland. Established in 1941, the aim of the FMB is to protect the interest of both medium and small sized construction firms.
Leading apprenticeship provider Develop Training has welcomed news that large employers are now able to transfer their levy funds to other organisations. However, the company cautioned that firms will have to manage the process well to maximise the potential business benefits. It also warned that the move is adding more complexity to a system that many employers have had difficulty in understanding. From May, large employers who pay the Apprenticeship Levy will for the first time be allowed to transfer up to ten per cent of their annual funds to other organisations. It means firms can use some of their unspent levy funding, which would otherwise go to the exchequer, to support smaller employers to take on apprentices. “There are potential business benefits for larger businesses to support firms in their supply chain to take on apprentices. I would recommend working with your chosen supplier and an apprenticeship provider to align the scheme with your own training programmes and to focus the money where it will benefit you both the most. You should be aware that apprenticeships can cover management training as well as the kind of trade-based training traditionally associated with apprenticeships,” said Chris Wood, CEO of Develop Training. “Putting some thought and effort into this process will pay dividends all round, for the large employer, the supply chain business and the apprentices who go through the scheme. As with everything to do with the levy, it makes sense to get expert help and advice from specialists such as ourselves,” he added. Initially, firms will only be able to transfer funds to one organisation. After user feedback from the first phase, they will likely be allowed to split their ten per cent funding into several smaller payments across multiple organisations. The ESFA has advised those transferring the funds to be aware of “the funding rules around transferring apprenticeship funds, which will be published at a later date”. Once a transfer is made, it cannot be refunded. Apart from their own supply chain, levy-paying employers who want to transfer funds can find companies who want money for apprenticeships in a number of ways. These include making contact with an approved Apprenticeship Training Agency such as Develop Training or working with regional partners. After Develop Training’s Industry Skills Forum in November revealed concerns among major employers about the levy, it has been offering advice on the levy process and guidance about the kinds of training that can be provided under the scheme.
