Reform UK Proposes Tax Rebates for Firms to Boost Apprenticeships
Reform UK proposes tax rebates for firms to boost apprenticeships, aiming to deliver a 'skills revolution' and reach 600,000 apprenticeship starts per year by 2034.
Apprenticeships are set to get a boost as Reform UK proposes tax rebates for firms to take on young apprentices.
The party's education spokeswoman, Suella Braverman, announced plans for an "apprenticeship wage credit" that would offer small and medium-sized businesses a 30% rebate on the wages of apprentices aged 16 to 18.
This move is part of a series of proposals aimed at reaching 600,000 apprenticeship starts per year by the end of the next Parliament, likely to be 2034.
The party says it would pay for its plans by banning all foreign students from accessing taxpayer-funded loans and stopping what it calls "Mickey Mouse degrees".
Reform UK's policy also includes a £2,000 retention bonus for apprentices, which could cost between £1.48bn and almost £2bn over five years.
Braverman argued that there are an "excessive number of graduates with qualifications that don't match the skills needed for our country," and that learning a trade would be a better use of their time.
Apprentices are generally paid a lower wage but get on-the-job training and practical work experience.
The apprenticeship wage credit would result in businesses saving an average of £4,000-a-year per apprentice, according to Braverman.
The £2,000 tax-free retention bonus would be paid to workers who "show loyalty" by staying with the business that trained them for at least two years after they complete their apprenticeship.
When pressed to give examples of "Mickey Mouse degrees", Braverman pointed to "gender studies" and "golf course studies".
The British and International Golf Greenkeepers Association (BIGGA) has previously criticised Braverman for similar remarks, which they branded "negligent and potentially damaging".
A Labour Party spokesperson said all young people "deserve a clear route to a good career" whether through "a properly funded apprenticeship, high-quality technical education or university".
The spokesperson added: "That's exactly what this Labour government is already delivering, with 500,000 new jobs, apprenticeships and training opportunities to help young people earn or learn, including a guaranteed job for 18-24-year-olds who have been out of work for 18 months."
On Wednesday, Conservative shadow education secretary Laura Trott said there is demand for apprenticeships but claimed the Labour government "aren't doing enough to boost supply".
She said: "Our New Deal for Young People would axe the dead end degrees that don't lead to jobs and instead invest in apprenticeships giving school leavers more choice."
Liberal Democrat universities spokesperson Ian Sollom said it was important to protect local colleges and universities as well as boosting apprenticeships, including apprenticeships in degree courses.
"Reform's proposals amount to dangerous economic vandalism which would rip a multi-billion-pound hole in our world-leading university sector," he added.
Green Party MP Hannah Spencer, who was a plumber before becoming an MP, said: "People are tired of Reform pitting us against each other - Those of us that did apprenticeships can still see the value in degrees and everyone should be able to choose their own path of education."
She added the Greens had announced a windfall tax on big banks, which she said would support small businesses employing more young people.
Apprenticeship Wage Credit Details
| Apprenticeship Wage Credit | |
|---|---|
| 30% rebate on the wages of apprentices aged 16 to 18 | |
| Average business saving per apprentice: £4,000-a-year |
Proposed Policy Costs
| Cost | |
|---|---|
| £1.48bn to £2bn over five years | |
| £2,000 retention bonus for apprentices |
Reactions to Reform UK's Proposal
- Labour Party: supports apprenticeships and technical education, but criticises Reform UK's proposal as "dangerous economic vandalism"
- Conservative Party: claims Labour government "aren't doing enough to boost supply" of apprenticeships
- Liberal Democrat Party: supports protecting local colleges and universities, as well as boosting apprenticeships
- Green Party: supports apprenticeships and technical education, but criticises Reform UK's proposal as "pitting us against each other"
The apprenticeship wage credit would result in businesses saving an average of £4,000-a-year per apprentice, according to Braverman.
