Simon Tarr, chief executive of People 1st, said: “The levy is going to pose some real challenges and there is a risk that those businesses offering high quality training will have to divert this investment to apprenticeships even if this is not necessarily the right fit.
“However, for many businesses apprenticeships can provide real bottom line benefits. For instance, 80% of companies that invest in apprentices report an increase in staff retention while an apprentice typically contributes £1,800 to the bottom line throughout their training, increasing to an impressive £5,200 per hospitality apprentice.
“We have been working with over 200 employers across the visitor service economy to create new apprenticeship standards, offering employers a system that has been designed by them and for them, and prepares apprentices for a career, not just a job.
“Launching in spring 2016 the new standards represent the biggest change to apprenticeships in recent times. They have been created flexibly to allow businesses to choose a variety of training options, which are right for their business, and we are working with the industry to demonstrate the benefits of apprenticeships.
“For the sake of these new standards, we, as an industry, need to ensure the levy works for us; it’s going to be challenging for many businesses, but it’s not going to go away. We must now make our voices heard loud and clear to government on how it is managed.”
The government expects the levy to raise an estimated £3bn by 2019-20 and People 1st states that larger employers including those in hospitality will face bills in excess of £100m.