RHA calls for skills levy to tackle sector shortages

As a sector, haulage firms have paid £735 million into the Apprenticeship Levy but have only been able to take out 20% of that figure.

The RHA is calling for a skills levy to replace the Apprenticeship Levy.. The Association believes reform of the system is essential if road transport operators are to fully benefit from the funding. The current scheme only allows firms to use funding for apprenticeships.

The Apprenticeship Levy is aimed at firms with a payroll of £3 million, forcing them to pay into a government pot from which they could draw down and pay for training requirements. As a sector, haulage firms have paid in £735 million but only been able to take out 20 percent of that figure, and only works for 12-month apprenticeships.

The RHA proposes that it is replaced with a skills levy which would allow businesses to use levy funds for a broader range of training programmes, including short modular courses and bootcamps.

Sally Gilson, RHA Skills Lead told Further Education, Skills and Apprenticeships News: “I think there is certainly the option of doing a six month apprenticeship – why does every apprenticeship have to be a minimum of 12 months? We are stuck in such a regimental feel when it comes to training. We have got so many different skills shortages – this is going to be the biggest thing over the next few years.”

Rod McKenzie spoke about the Apprenticeship Levy for National Apprenticeship Week

FE Week also reported that skills bootcamps are seeing record numbers of new drivers. Skills bootcamps were introduced by the government in September 2021 to help tackle the HGV driver shortage.

Department for Education figures for April 2021 to March 2022 indicated 4,740 people began HGV bootcamps. HGV driving test numbers also shot up to around 96,000 in 2021/22 compared to the 72,654 average in the five years prior to the pandemic.

“When you look at the numbers, you see record numbers of people training and getting their licence, which is fantastic. We always said if the correct training programme was available people would do it, and lo and behold, that is exactly what has happened.” Gilson told FE Week.

“Every year a substantial number of drivers retire, so we do need to keep the new blood coming in which is why we really want to see the bootcamps not just talked about for this year or next year, we want that as a long term programme.”

A skills levy would allow operators to make further use of the successful bootcamps.

You can read the RHA’s proposal for a skills levy here.