The Liberal Democrats have called on the Government to reform the apprenticeship levy.

In the House of Lords, Liberal Democrat Lords Spokesperson for Business, Lord Fox, said:

“Last autumn we saw a big fall in the number of apprenticeship registrations. In February they were down 40%, in March they were down 58%. This is not a blip, this is a trend”

Lord Fox added:

“The apprenticeship levy is a classic example of a good idea done badly. Companies that approached it with the right intentions are losing patience with a system that is bureaucratic, rigid and overly complex.

“Moreover the Government’s 3 million apprenticeships target is neither desirable nor achievable, and is encouraging quantity over quality.

“The evidence shows that the levy is not fit for purpose and must be reformed. Responding to the calls of business, the Liberal Democrats are today calling for the transformation of the apprenticeship levy into a wider ‘Skills and Training Levy’ to prepare the UK’s workforce for the economy of the future.

“Our replacement levy would also direct a quarter of funding into a ‘Social Mobility Fund’ for the least skilled parts of the country, and drive upskilling across disadvantaged demographic groups by introducing specific training targets for women, disabled people and those from a BAME background.”