Apprenticeship Levy: Creative Industries

Lord Foster of Bath Excerpts

Monday 23rd July 2018 Lords Chamber

Asked by

[Lord Foster of Bath]

To ask Her Majesty’s Government what plans they have to amend the working of the apprenticeship levy to take account of the concerns of the creative industries.

[Viscount Younger of Leckie (Con)]

My Lords, we introduced the levy to fund a step change in apprenticeship numbers and quality. This is putting funding on a sustainable footing while improving the technical and professional skills of the workforce. We recognise that some sectors and employers, including in the creative industries, have challenges in taking advantage of these reforms. We continue to work closely with employers in this sector to inform them about the benefits and to encourage apprenticeship take-up.

[Lord Foster of Bath (LD)]

I am grateful to the Minister for that reply but, rather more than challenges, does he not accept that the apprenticeship levy is fundamentally unsuited to delivering the skills that the creative industries need? It does not align with the sector’s own voluntary training, there are only a dozen approved apprenticeship standards for a sector with thousands of different job roles, and there is insufficient flexibility to share training vouchers with the SMEs that make up 95% of the sector. The Creative Industries Council and the Bazalgette report have made a clear business case for an industry-specific training model that is better suited to provide the skills and the apprenticeship needs of the sector. Will the Government accept those recommendations to ensure that the success story of our creative industries can continue?

[Viscount Younger of Leckie]

My Lords, we will certainly look at the recommendations and we recognise that the creative industries sector comprises a workforce that is different—it is more diverse, and largely made up of freelance and sole-trader businesses. However, if an apprenticeship linked to the levy is not suitable, then the apprenticeship training agencies could provide a solution for this important sector. ATAs recruit, employ and arrange training on behalf of employers, which includes the 20% off-the-job training. A further solution is for the major levy-paying employers to transfer up to 10% of their levy funds to help the sector.