Addressing employer underinvestment in training - the case for a broader training levy

The UK has suffered a long-term and substantial decline in employer investment in training over past decades. Figures show declining employee participation in workplace training, and that a substantial portion of the training done is only induction or compliance-based.

As part of an attempt to reverse the trend, the government introduced the Apprenticeship Levy in 2017. The focus of the levy was to increase both the quantity of UK apprenticeships and the quality of new apprenticeships, in addition to spurring employer spending on training. Yet the initiative is not having the desired effect.

It is clear that the levy in its current form should be reviewed and revised. To this end, the CIPD recommends:

• Reforming the existing levy into a broader, ringfenced Training Levy. It’s increased scope will include other forms of accredited training, aligned to sector priorities.
  
  
• Ensure the levy is sustainably funded, allowing it to responsively address local skills supply and demands.
  
  

Download the report and infographic and read our recommendations.