More than
three-quarters (79%) of businesses expect to increase the number of
higher-skilled roles over the coming years.
Yet two-thirds (66%)
fear that there will be a lack of sufficiently skilled people to fill
vacancies.
That’s according to
the 2018 CBI Education and Skills Annual Report, in partnership with Pearson. The report
represents 28,000 businesses and reveals that 85% of firms are expecting to
maintain or increase investment in training in their workforce. Currently UK
employers spend £44.2 billion on training expenditure each year.
When asked about the
impact of the apprenticeship levy, the report highlighted a drop in the number
of firms offering apprenticeship programmes (from 83% in 2017 to 70% in 2018).
Worryingly, 59% of those firms that offer such programmes have experienced difficulty
in recruiting apprentices or expect to do so in the next three years. And
over a quarter (26%) have taken the decision to absorb the levy as an added
cost of doing business.
Business engagement
with young people in education reduced from 81% in 2017 to 75% in 2018.
Encouragingly, two-thirds of respondents (65%) want to play a greater role in
supporting schools and colleges.
John Cope, CBI Head
of Education and Skills Policy, said: “This year’s survey shows the scale of
the challenge to address skills gaps, with two-thirds of businesses deeply
worried that there aren’t enough sufficiently skilled people to fill vacancies.
“Yet there’s room
for optimism. The vast majority of firms do expect to maintain or even
increase their investment in staff training, as well as increase the number of
higher-skilled roles over the coming years. This is the first time since 2014
that these numbers have been so positive.
“Policymakers,
business, the education sector and the CBI all have their role to play, in
helping the two-thirds of companies wanting to support schools and colleges.”
Firms look forward
to working with the Government in the lead up to the Spending Review to agree
how the apprenticeship levy can evolve into a more flexible ‘skills
levy’.
Key apprenticeship
levy survey findings:
- The apprenticeship levy must
be reformed to include:
- Allowing use of funds to
cover a wider range of costs for training (59%)
- Greater flexibility in
spending levy funds including their transfer and pooling (51%)
- Less bureaucracy to make the
system more responsive and more user-friendly (47%).
Key T-level survey
findings:
- 41% of employers think
T-levels are important as part of developing technical qualifications fit
for the future
- Given their early stage, it
is unsurprising that 42% of companies were unaware of T-levels,
demonstrating the importance of better communication of these reforms to
employers
- Nearly two-thirds (64%) of
businesses largely or wholly unaware of 45-day work placement element of
T-levels.
John Cope, CBI Head
of Education and Skills Policy, said: “While some companies are benefiting from
the apprenticeship levy, big challenges remain. To its credit, the Government
has listened and is delivering reform: making the system more flexible and slashing
the cost for small businesses.
“But the end goal
remains that the apprenticeship levy should evolve into a more accessible
skills levy.”
