JTL, the leading work-based training company that offers apprenticeships to aspiring electricians and heating and plumbing installers, has openly criticised what it calls an ‘outrageous abuse of the training levy system’ by universities.
Jon Graham, chief executive, claims many are using a loophole to run so called ‘MBA apprenticeships’, contrary to the spirit of the apprenticeship scheme and the intended use of the levy when it was introduced last year.
“We understand that a large number of universities – possibly as many as 50 – intend to register on the government’s register of approved apprenticeship training providers in order to tap into the more than 1,400 people expected to enroll for these so-called ‘MBA apprenticeships’ over the next year or so,” said Jon.
“’MBA apprenticeships’ clearly do not meet any sensible definition of apprenticeships as we know it, and we’re pretty sure that using Training Levy money for them was never envisaged by the government or anyone involved with setting up the Training Levy at the time.
“Some companies – and we understand some government departments – are using these ‘MBA apprenticeships’ to train employed people who already have degrees.
“It’s frankly ludicrous to dip into this fund that was clearly intended to provide career paths for young people looking to learn a profession through the apprenticeship route. Currently, this activity only looks to be responsible for around one per cent of the Training Levy funds, but it’s clearly the thin end of the wedge,” he said.
“If the government is willing to turn a blind eye to what amounts to a clear abuse of the system, we have to question what other uses the Training Levy will be used for in the months ahead.”
The training levy was introduced by the government with companies with a wage bill in excess of £3 million a year paying a 0.5% levy to be spent on apprenticeships and the closing of skills gaps across the UK.
The use of the Levy to fund the ‘MBA apprenticeships’ has been criticised by many in politics, education and business but has alarmingly been supported by the Chartered Management Institute and the Department for Education who claim that this is simply part of the ongoing programme of ‘apprenticeship reforms’.