MINISTERS have been accused by a Bradford business leader of introducing a new apprenticeship levy on employers in a “cack-handed” way.

Andy Caton, president of Bradford Chamber of Commerce, has backed a report revealing that many employers are in the dark about the new levy which comes into force next April.

The British Chambers of Commerce said its survey of 1,600 business leaders showed that many firms had never heard of the of the new charge.

It showed that two out of five firms either did not understand or did not know about the levy and most of those who did regarded it as another tax.

From next April all employers in the UK with an annual pay bill over £3 million will have to contribute to the levy at a rate of 0.5 per cent of their annual pay bill, raising an estimated £3 billion towards creating more apprenticeships.

The BCC said its survey showed that the Government had so far failed to adequately communicate its apprenticeship funding policy.

Andy Caton said: “We would concur with BCC’s assessment, in fact some of our members have fed directly into the survey.

“Our members value and support investment in training and personal development but the government is handling this in a cack-handed fashion and as a result confusion reigns supreme.

“The process, outcomes and benefits of this policy need to be clearly articulated in a way that carries the support of those affected.”

Marcus Mason, BCC head of education and skills, said firms valued apprenticeships as a way of developing skills and increasing productivity. But with just six months to go until the levy is introduced, the research showed the Government needs to step up its communication to business.

“The Government needs to ensure that businesses understand how they could benefit from the reforms, because if it just feels like yet another tax then then the policy will have failed.

“The Government should allow businesses to use the levy funding to support other high-quality workplace training or there is a risk of displacing other valid forms of training. Fundamentally, treating apprenticeships as a numbers game would benefit neither businesses nor apprentices themselves.”