Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
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UTILITY WEEK | 4TH - 10TH DECEMBER 2015 | 21 torrential rain caused some rivers to burst their banks. The Met Office doesn't yet know when the next storm will hit, or what its severity will be, but we do know it will be called Desmond. If you have an asset or project you would like to see featured in this slot, please send your pictures and details of the project to: paul.newton@fav-house.com or call 01342 332085 Pipe up Nick Ellins S kills and employment policy continues to move from an issue primarily for human resources departments, to being on the radar of boards, finance and regulation directors, and those responsible for corporate reputation. The recent comprehensive spending review announcement of an apprenticeship levy of 0.5 per cent on employers' pay bills from April 2017 will only add to that shi. All employers in England, Scotland and Wales with bills of more than £3 million are currently expected to pay in. With the primary reclaim mechanism currently being digital training-only vouchers, it makes sense for the whole utility sector to act in concert and work together to ensure the best outcome for all. Two polar schools of thought are already emerging. One sees some employers quietly embracing the govern- ment's ambition to bring in at least three million appren- tices. They see themselves as pragmatic, proactive and putting aside some of their initial discomfort around the levy in pursuit of wider ambitions. They look beyond the detail to a prize of a new talent pool. Other employers see it differently, cutting straight to the potentially unintended consequences government has created. Without the required regulatory impact assessment to help the sector understand the costs, impacts and pitfalls, employers are le to work it out for themselves, significantly duplicating effort and increas- ing the cost to industry. Despite the levy coming from the same government department as the Better Regulation Executive, there is no evidence that Better Regulation principles have been applied to reduce the overall regulatory burden. This leaves employers asking questions such as, where is the transparency of the non-regulatory options that were examined, tested and rejected before decid- ing on the levy? If government has a one-in/two-out policy, then where are the two areas of regulatory red tape that will go, and how will those reductions help the levy business case? Where is the wider employment and skills strategy to give context to the very small slice of the career pie that is an apprenticeship? The Energy & Utility Skills Group is bringing sector employers together to find clarity in these concerns, while ensuring a constructive and progressive dialogue with ministers and officials. Because the end goal that we all strive for – attract- ing the right talent, with the right skills, in the right roles, at the right price to deliver what is an eye-watering infrastructure investment programme – remains just as distant today as it was before the announcement. Nick Ellins, chief executive, The Energy & Utility Skills Group Nick Ellins interview, p6 "There is no evidence that Bet- ter Regulation principles have been applied to reduce the overall regulatory burden." Operations & Assets