A MAJOR employers’ group has urged the government to delay the launch of the Apprenticeship Levy.

EEF, the manufacturers’ organisation, is urging the government to hold off on introducing the levy until September 2017 following research showing that firms have grave concerns about the scheme’s design and implementation.

From April next year, businesses with a pay bill of £3m or more will be subject to a 0.5 per cent payroll tax to fund the levy. Each employer will receive an allowance to offset the levy and pay for training.

However, misgivings are so strong in the manufacturing sector, claim EEF, which reported that just one per cent of the 156 firms they polled believe the levy will work in its current format.

While 70 per cent of firms agree with the government’s drive to deliver a greater number of apprentices, only think 18 per cent think the Apprenticeship Levy in its current form will help.

Most think the current format is too complicated and will just be another layer of bureaucracy with which business will have to deal.

A delay will also mean avoiding a clash between the annual rise in the national living wage and national minimum wage – due in April next year – and would be a better match with businesses’ recruitment cycles.

Tim Thomas, director of employment and skills policy at EEF, says: “The headlong rush to bring this levy to market has left little time to iron out some significant wrinkles and get responses to industry’s unanswered questions.

“As a result, firms can see serious flaws that could sink this policy at launch. This is in nobody’s interests, which is why we’re recommending a delay to buy us all enough time to avoid the looming car crash.”

Tim said the EEF’s membership supported the levy in principal but wanted to see a “sturdy and simple system that businesses can rely on and trust”.

“Half a year more in development could make all the difference between whether it succeeds or fails,” he added.

Stewart Dunn, CEO of Hampshire Chamber of Commerce, echoed EEF’s concerns: "For the scheme to be effective the levy should be simple for manufactures to understand and importantly offer easy access to the funds.

"Otherwise it will simply not work and will come an unnecessary burden on business and fail to achieve what it was meant to do in the first place,” he said.