SMEs seek to use this government grant to train more apprentices in cybersecurity, data skills and AI. The research also suggests that tax breaks could motivate more digital apprentices into small businesses.
The BCS report found that bureaucratic and funding obstacles have left SMEs struggling to fill the employment gap, despite the fact that the number of digital apprentices grew by 50% last year.
A notable barrier identified is the 5% 'co-funding' requirement for non-levy paying organisations to take on apprentices. Removing this requirement could reduce the disproportionate impact on SMEs.
The BCS report, ‘Future of Digital Apprenticeships,’ recommends protecting the Apprenticeship Levy while reforming aspects that are not working. For example, the Apprenticeship Levy had £2.178 billion in unused funds for 2022-23, which the Department for Education returned to the Treasury since the Levy started across the UK in 2017.
Despite universities successfully attracting students to computing degrees, the BCS notes the need for a diverse and inclusive range of pathways into the IT profession and the broader digital economy. This effort should also focus on re-skilling individuals over 50, who are currently underrepresented in tech jobs.
