Confusion reigns over apprenticeship reform

By Ged Henderson

18 Apr 2018

Businesses are missing opportunities to ‘upskill’ their workforces with employers confused about how the apprenticeship levy system works, a Lancashire Business View report has revealed.

Blackpool and The Fylde College apprentice

Apprenticeships are no longer confined to school-leavers taking up traditional ‘hands-on’ trades.

But implementation of new ways to deliver – and pay for – apprenticeships has been so badly handled that new registrations have actually fallen.

Lisa Whiteoak, director of TrainingStation, told Lancashire Business View: “The apprenticeship levy scheme imposes a levy on large employers, those with a pay bill over £3m each year, to help fund apprenticeship training within their business.

“But this has left a lot of employers confused about how it works and many don’t even know that they are paying into the levy.”

Whiteoak says that used correctly the new system can be a great benefit to all sizes of business.

“The government provides all of the funding for training for 16- to 18-year-old apprentices if a company is a non-levy employer, and contributes 90 per cent of the funding for candidates over 19.

“The government is also offering an incentive of £1,000 for both levy and non-levy payers to take on young apprentices aged 16-18, so now is the ideal time to evaluate your workforce and assess your future requirements.”

Dr Rachel Cragg, pro vice-chancellor (academic development) at the University of Central Lancashire (UCLan), agrees that the message has not been well promoted.

She told Lancashire Business View: “There is a general lack of awareness and understanding of apprenticeships, how they work, and what they can offer.”

Michele Lawty-Jones, director of the Lancashire Skills Hub, has seen a significant drop in apprenticeship starts since the introduction of the reforms in April 2017.

She told Lancashire Business View: “There are different patterns in different sectors – the greatest drops in starts have been in sectors such as health and social care and visitor economy, with lesser drops in traditional areas such as construction and engineering.

“There is slight growth in digital apprenticeship starts which is bucking overall trends.”

However she added: “We are starting to see growth in higher level and degree apprenticeships as new standards are being signed off – and we expect to see continued growth in this area.”

It’s not a mystery why businesses are shying away from apprenticeships, according to the Lancashire Business View report.

Delivery of new frameworks was staged, but long delays in the implementation left many industries in limbo, stuck between (or adopting both) new and old standards. And the new levy fund can seem overly complex on first look.

John Westhead, head of operations and learning at Training 2000, told the magazine the companies he meets are also concerned about the perceived time it takes to train a new apprentice.

He said: “Employers want to recruit because they have a staff shortage, and they don’t feel that an apprentice who then has to spend 20 per cent of their time training will fill that gap, especially if they require supervision and mentoring from colleagues,” he says.

However, Debbie Simpson of Lancaster University says apprenticeships are most effective when viewed as a wider proposal, the opportunity to upskill a whole workforce and not merely a way of recruiting school-leavers.

She said: “One perceived barrier is the belief that apprentices are young, new recruits. However, the latest apprenticeship programmes are very relevant to existing employees.”

And Hannah Baker, business development manager, apprenticeships at Blackburn College, said: “There is a wealth of support available to businesses, whether their apprenticeship plans are focused on professional development and upskilling for existing staff or to support recruitment.

Despite the concerns, Michele Lawty-Jones believes apprenticeships in the county have a bright future: “There are strong foundations in place, both in terms of the provider base and employer engagement.

Together we believe we can continue to make apprenticeships work for Lancashire – to home grow talent and skills to meet the needs of our employers now and in the future.”

A full version of this report is published in the latest issue of Lancashire Business View, the independent magazine for commerce and business which has been connecting the county since 2005. 

The Apprenticeship Guide is sponsored by:

Enjoyed this? Read more from Ged Henderson

Latest news

1

Heysham 2 takes top UK nuclear generation title Heysham 2 Power Station

Heysham 2 takes top UK nuclear generation title

08 Jan 2026

2

Lancashire leader calls on chancellor to save the struggling high street sectors frank-mckenna-1000x500.jpg

Lancashire leader calls on chancellor to save the struggling high street sectors

08 Jan 2026

3

Pleasure Beach Resort extends its season for the second year in a row Avatar Airbender at Nickelodeon Land

Pleasure Beach Resort extends its season for the second year in a row

08 Jan 2026

4

Japanese business steps forward to buy Rossendale footwear group Harvey Jacobson and Gola trainers

Japanese business steps forward to buy Rossendale footwear group

07 Jan 2026

5

Combined authority spearheads £20m innovation cash bid Workers on the shop floor

Combined authority spearheads £20m innovation cash bid

06 Jan 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
January / February 2026 - LBV Issue 126 Magazine Launch Event
Porsche Preston1200x630
Networking
22 Jan 2026

January / February 2026 - LBV Issue 126 Magazine Launch Event

Porsche Preston, Preston, PR2 1QJ

08:30 - 10:30

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Lancashire County Council – Meet the Buyer - January 2026 Webinar Event
LBV Hub Webinar
13 Jan 2026

Lancashire County Council – Meet the Buyer - January 2026 Webinar Event

10:00 - 12:00

Preston Tech Connection: Tech For Better Humans
PTC January 26 banner.jpg.jpg
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Preston Tech Connection: Tech For Better Humans

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Society1 Open Coworking Day
Open Day Square.png.png
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Society1 Open Coworking Day

Society1, Coworking Space, Preston, PR1 3LT

09:00 - 17:00

The Business Network Central and East Lancashire
LBV Header (28).png.png
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

The Business Network Central and East Lancashire

Stanley House, Blackburn, BB2 7NP

11:30 - 14:15

Preston Freelancer Meet-Up: January
January Freelancer Meet-Up Square .png.png
LBV Hub Networking
20 Jan 2026 - 20 Jan 2026

Preston Freelancer Meet-Up: January

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Lancashire County Council – Meet the Buyer Drop in Event
Meet the Buyer event new
LBV Hub Networking
20 Jan 2026

Lancashire County Council – Meet the Buyer Drop in Event

County Hall, Pitt Street, Preston , PR1 8XJ

10:00 - 15:00

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2026 - 27 Dec 2025

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Payroll Update 2026 Samlesbury Hall
payroll.jpg.jpg
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Payroll Update 2026 Samlesbury Hall

Samlesbury Hall, Preston, PR5 0UP

08:00 - 10:00

Payroll Update 2026 Red Hall Hotel
Payroll calculator new.jpg.jpg
LBV Hub Seminars
13 Mar 2026 - 13 Mar 2026

Payroll Update 2026 Red Hall Hotel

Red Hall Hotel, Bury, BL9 5NA

08:00 - 10:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin