Launched in April 2017, the Apprenticeship Levy is paid by all UK employers whose annual wage bill exceeds £3 million. The amount payable is 0.5% of the total wage bill, minus a £15,000 “levy allowance”.

The funding system has come under fire with industry observers estimating that perhaps as little as a third of what Scottish companies pay into the levy gets spent on apprenticeships in this country. It is thought that the rest is spent on other skills areas.

The release last year of the findings from the review of the post-school skills and training landscape led by James Withers prompted the launch in June of a consultation by the Scottish Government on what many believe will be a dramatic shake-up of the elaborate network of agencies and organisations that deliver apprenticeship training.

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That review, which closed at the end of last week, is focused on simplifying the flow of government funding for universities, colleges, apprenticeships and student support. This will not directly impact the operation of Westminster's Apprenticeship Levy, which many believe is also in need of reform.

Jacqueline Dobson, president of Barrhead Travel, is among those advocating for change. Here she explains why she believes the Apprenticeship Levy is "not fit for purpose".

How long have you been with Barrhead Travel, and why did you join the business?

I’ve been with Barrhead Travel for 24 years and I initially joined the business as a VIP sales consultant as the next stage in my career following the completion of an apprenticeship.

How many customers do you serve every year, and who are they?

We take hundreds of thousands of customers on holiday each year. As we sell all different types of holidays - from cruises to family beach breaks and from bucket-list adventures to honeymoons - our customers are wide-ranging.

Who owns the company, and what is its annual turnover?

Barrhead Travel is owned by Internova Travel Group – one of the largest travel service companies in the world. Barrhead Travel has an annual turnover of £330m.

How many people do you employ?

 We have over 570 colleagues across the UK.

Tell us a bit about how your business operates?

We’re a travel agency group with a mission to help customers get the holiday of their dreams, no matter where they’d like to go and what their budget is.

We focus on empowering our people through development, training and creating a supportive workplace. Doing this means we can retain the best talent in the industry, providing exceptional service to our customers.  

Why are apprentices important to your business, and the travel sector in general?

Apprentices are at the heart of our business – and are essential for the travel industry. We view apprentices as leaders of the future – in fact, many of our senior management team started their careers as apprentices.

Young people bring fresh perspectives and contribute fantastic ideas to the business. We offer lifelong careers and genuine progression for our apprentices, and it’s amazing to see those who started life off in trainee positions progressing into management.

During Covid, the wider travel industry saw first-hand the impact of not being able to take on apprentices and many areas of travel had talent gaps. Thankfully, that’s stabilised now but it’s important to keep a focus on apprenticeship recruitment and development.

How many apprentices have you trained up over the years?

We can take on anywhere between 50 and 100 apprentices in any given year – so that’s a lot to count over my two decades!

Who supports you in delivering your training?

Last year, we launched our own bespoke apprenticeship programme which was created by our in-house training team. They work in partnership with several regional educational institutions but our coursework, support and assessing is now completed in-house.

Does the Apprenticeship Levy support these efforts? What could be done to improve the existing system?

The apprenticeship levy urgently needs reformed – it is not fit for purpose. Particularly here in Scotland, we receive less funding than our counterparts in England, despite paying into the same system.

Larger businesses are not seeing the full benefits of the levy and I would like to see a reform that prioritise fair funding distribution. We also need the Governments to really engage with specific industries on skills to understand support they need to maintain and nourish apprenticeship programmes.

Why are you so passionate about apprenticeships?

I started my own career as an apprentice. At the time, apprenticeships weren’t necessarily seen as a route to be able to climb the career ladder to board-level positions.

My own experience, as well as the experience of my colleagues, is testament to the fact the apprenticeships are an extremely viable route to success. I want to advocate for those who wish to pursue this path and let them know that joining a business that genuinely invests in and cares about its apprentices will open doors for career progression.