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April 14, 2018 07:00 am

Firms Relabelling Low-Skilled Jobs As Apprenticeships, Says Report

Fast food giants, coffee shops and retailers are relabelling low-skilled jobs as apprenticeships and gaining subsidies for training, a report says. BBC: The study by centre-right think tank Reform says many firms have rebranded existing roles after being obliged to contribute cash to on-the-job training. It adds that 40% of government-approved apprenticeship standards do not meet a traditional definition of them. The government says "quality" is at the heart of its apprenticeship reforms. As part of the changes, it introduced an apprenticeship levy on organisations paying more than $4.3m in salaries a year. They have to pay 0.5% of their wages total into a "digital account" held by HMRC. They then "spend" these contributions on apprenticeship training delivered by registered providers. They can also get back up to 90% of the cost of training. But they are also entitled to pay apprentices lower than the standard minimum wage.

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