Prime Minister David Cameron will today outline a package of radical plans to increase the number of quality apprenticeships across England and give businesses a say on how they are run and what they offer.

Employers across the country will today (Friday) be asked for their views on the introduction of an apprenticeship levy – set to be introduced in 2017 and designed to increase investment in training and apprenticeships.

Other steps outlined today that form part of the Government’s pledge to support 3 million apprenticeships by 2020, include a requirement to take a company’s apprenticeship offer into account when awarding large government contracts and publishing new ‘industry standards’ so that apprentices have the skills that companies need.  

Prime Minister David Cameron said: “The greatest asset any employer has is their workforce. And by investing in them, they are investing in the success and future of their business.

“As a One Nation government, we are committed to supporting three million quality apprenticeships over the next five years – to help strengthen our economy, deliver the skills that employers need and give millions more hardworking people financial security and a brighter future.”

Skills Minister Nick Boles said: “Skilled people are the lifeblood of a strong economy but for too long UK businesses have invested too little in developing their employees’ skills to meet the demands of a competitive, global market. The apprenticeship levy will ensure that businesses invest in skills and training, and will act as a much needed shot in the arm for the country’s productivity.”

The plans outlined today include:

• Apprenticeship Levy  - The amount that UK businesses have invested in training has fallen consistently over the last 20 years and UK productivity now lags behind other major Organisation for Economic Co-operation and Development (OECD) countries.
• Employers are now being urged to give their views on plans for an apprenticeship levy to boost investment in apprentices and skills training and make sure it meets their needs. Under the proposed approach employers will that put in funds will have direct spending power over it.
• Levy systems already operate in over 50 countries, including Netherlands, Denmark and South Korea, and will ensure every larger company plays their part in investing in the future generation of apprenticeships. The levy will help cement the government’s aim to build a world class apprenticeship system, led by employers.

A full consultation on the implementation of the levy is being launched today.