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Apprenticeship levy is a 'blunt instrument', MPs say

The Government’s apprenticeships policies lack focus and will not close the skills gap because they fail to concentrate on the sectors and regions where training is most needed, an MPs' report warns.

They also say that the target for three million apprenticeship starts by the end of this Parliament could hamper attempts to raise quality, in the joint report by the Commons education and business select committees.

MPs also criticise the apprenticeship levy, which starts next week, saying they were not ‘convinced that such a blunt instrument’ was the best way to achieve the Government’s aims.

The levy will apply to businesses with a payroll of more than £3m and will be charged at 0.5 per cent of companies’ wage bills.

The report said, ‘Our country needs to invest more in training and it is right that employers should contribute, but this training must take place in the sectors of the economy and the regions of our country where it will do most good.’

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