Staff Council apprentice pay talks break down as NHS in England risks losing over £200m unspent levy

The Staff Council has been unable to agree a new provision on apprentice pay for the Agenda for Change handbook after nearly 18 months of talks.

This comes despite the fact that UNISON has exposed over £200m in levy funds going to waste as NHS Trusts in England fail to spend it on apprenticeship training.

The 2018 three year pay deal committed both sides to negotiations but employer financial concerns have proved an insurmountable barrier to reaching a deal. These concerns centre on the cost of releasing and backfilling apprentices and on restrictions over how levy can be spent. As a result the Staff Council talks have ended with a statement setting out

  • shared aspirations for high-quality apprenticeships
  • shared concerns about funding restrictions
  • shared concerns about poor practice on apprentice pay and job descriptions and potential equal pay risks
  • the need to preserve pay levels for internal applicants switching into apprenticeships

But no agreement has been reached on pay rates. Instead, the statement reissues the current guidance around how to use Annex 21 of the Handbook for apprenticeships and encourages local partnerships to refer difficulties in interpreting it to the Joint Secretaries for advice.

It doesn’t add up

The breakdown in talks comes at a time when research by UNISON has uncovered that NHS Trusts in England are failing to make use of large sums of apprenticeship levy funds.

This means hundreds of millions of pounds are at risk of being lost to the NHS. This is because apprenticeship levy rules mean that funds expire and are clawed back by the government if employers don’t spend them within 24 months of paying in.

UNISON’s It doesn’t add up report highlights how apprenticeships could make a major contribution to tackling staffing shortages but the NHS is failing to make best use of them.

The report is part of our national campaign for:

  • Additional funding to support large-scale high-quality apprenticeship programmes
  • A national deal on fair and equitable pay for apprentices

Our new apprentices in health page outlines our campaign agenda and has updated resources for branches.

Branches can support the campaign by organising locally to expose poor pay rates and exploitation of apprentices and seeking to negotiate improvements.

Branches can highlight the financial hit employers are taking by allowing their apprenticeship levy money to expire and push instead for involvement in designing good apprenticeship schemes to use it not lose it.

Action for branches