Additional funding generated by the incoming Apprenticeship Levy must be reinvested in "high quality" construction apprenticeships, according to the Federation of Master Builders (FMB.

Final details of the scheme were recently revealed this week, which is part of a Government drive to train three million new apprentices by 2020.

From April 2017, employers with an annual wage bill of more then £3 million will be required to spend 0.5% of the total on a levy.

Brian Berry, Chief Executive of the FMB, said making sure there is "plenty of flexibility" within the digital voucher model is "critical" to the scheme's success.


"This is especially true for the construction sector as two thirds of all construction apprentices are trained by SMEs," he said.

"As long as larger contractors are unable, or unwilling, to play a greater role in industry training, then it's vital that funds can be rerouted to smaller firms. The severity of our industry's skills shortage means that we need to ensure that every single penny of Apprenticeship Levy that is extracted from the construction sector is reinvested in high quality construction apprenticeships.

"We had some concerns that if larger companies were not able to pass their vouchers onto smaller firms, the money would be left languishing in the general pot before eventually being spent by other sectors. Now it's a question of ensuring that the digital voucher model is simple and easy for small firms to navigate."

(LM)