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Trade bodies call for reforms to Scottish apprentice schemes

FSB Scottish policy convenor Andy Willox
FSB Scottish policy convenor Andy Willox

Two major trade bodies have called for changes in the way apprenticeships are managed in Scotland.

In a new policy paper published to mark Scottish Apprenticeship Week, the Federaton of Small Businesses argues for more funding to be diverted towards adult apprenticeship schemes.

The document shows fewer Scottish businesses offer apprenticeships than do so in England – 15% compared to 19%.

However, the gap is much greater within the small business community, with just 12% of firms north of the border offering training placements compared with 24% in England.

Scottish policy convener Andy Willox said a change of approach may be needed if Scotland is to meet its target of 30,000 modern apprentices per year by 2030.

He suggested more support should be offered to adult apprentices, with the current system offering up to £5,500 less for a candidate over 25 as compared with a young person between the age of 16 and 19.

“If we’re going to reach our 2020 target of providing 30,000 Scottish apprenticeships every year – we might need to change our approach,” Mr Willox said.

“A business who wants to train someone up – say a parent returning to work, or someone looking to change career – shouldn’t be penalised because of the candidate’s age.”

Meanwhile, the Scottish Retail Consortium has raised concerns that shopkeepers are getting a raw deal from the Apprenticeship Levy.

It said Scottish retailers had paid in an extra £15m to the system in the past year but received no extra support in return.

“Whilst businesses in England have a transparent account which they can access and direct towards training, equivalent businesses in Scotland are paying what looks more and more like a tax on employing workers,” SRC head of policy Ewan MacDonald-Russell said.

“Many retailers, as employers of scale, are getting a raw deal. Scottish retailers face a £15 million tax bill this year for the levy with precious little in return.

“It doesn’t have to be this way.

“With extra funding coming to the devolved administrations in April, there is an opportunity to reimagine the £10 million Flexible Workforce Development Fund and the Modern Apprenticeship Retail framework to ensure they meet the needs of employers.”