Skills such as heat pump installation, teamwork and leadership should be among the training and upskilling included in the apprenticeship levy, urges the construction industry.
The Chartered Institute of Building, CIOB, has called for the levy to offer businesses greater flexibility to include qualifications such as higher diplomas or degrees.
CIOB public policy and affairs head David Barnes said: “We would encourage apprenticeship levy funding to be opened to other forms of training and upskilling in construction to give businesses greater flexibility in meeting their skills requirements.”
Often the money collected from the levy is left unspent and returned to the treasury unless it’s used or transferred to smaller companies within two years.
Mr Barnes added that many construction businesses felt disincentivised to offer apprenticeships due to the difficulty of retaining staff with many leaving once qualified.
“This is especially true for SMEs, and we need a system that works for businesses of all sizes.”
National Federation of Builders, NFB, strategy and operations director James Butcher said apprentices were often poached before finishing their internship by other employers offering high salaries.
The construction industry is calling for a review of the apprenticeship system following the government’s launch of Skills England on the 22nd of July.
Prime minister Sir Kier Starmer and education secretary Bridget Phillipson have said they want the new body to bring together the “fractured skills landscape”.
Uptake of apprenticeships is dwindling
Government data shows a fall in the number of starts in construction, planning and the built environment apprenticeships in 2022-23 to 24,530 compared with 26,080 in the previous year. The CIOB has highlighted that often the levy is unspent and that there is duplication for many building firms who also must pay the Construction Industry Training Board, CITB, levy.
The building industry worries there won’t be enough qualified workers to deliver the government’s pledge of 1.5m new homes over the next five years. Data shows more than 251,500 new skilled workers are needed to meet projected growth over the next four years.
The National House Building Council, the largest provider of new home warranties, is rolling out a national network of training hubs to help upskill the next generation.
NHBC chief executive Steve Wood said: “With an ageing workforce, a lack of skilled workers could seriously slow down Labour’s plans.”
The Federation of Master Builders, FMB, has called on the government to focus on a “long-term skills plan” but has warned that more flexibility on redirecting up to half of the levy shouldn’t lead to a fall in construction apprenticeships.
Brokers Hank Zarihs Associates said development finance lenders were keen to see a more attractive system for SMEs to upskill their employees, particularly in new disciplines such as green retrofits.
Skills England will be established in phases over the next 9 to 12 months with the Institute for Apprenticeships and Technical Education (IfATE) transferred to the new body.