CHAMBER OPINION CHAMBER OPINION
Understanding the changes to apprenticeships
Phil Davies (pictured), Principal and Chief Executive of City College, considers the changing face of apprenticeships.
This year, 1 May marked the beginning of a new era for Apprenticeships and the way in which they are funded. I am sure I am not alone in feeling both excited and anxious in the knowledge that over the next few months and years we will start to see whether this period of change will provide the positive outcomes that the Government is looking for. One thing that is for certain, for the Government to meet its target of three million apprentices by 2020, the ‘typical’ profile of an apprentice is likely to change quite dramatically. Gone are the days when an
Whether it’s keeping up-to-date with latest
‘Employers who invest in
apprentice was a school leaver eager to work with their hands, predominantly as a car mechanic, on a construction site or in an engineering business. In this new era for apprenticeships, the fees impacting employers for apprentices over the age of 19 have been significantly reduced and consequently age is no longer a barrier. This means that good, high- quality apprenticeships are not inaccessible to those who have tried a different career previously, before identifying the career they wish to undertake; or those who are leaving the armed services; or those looking for a career change. They are available to all at a time in their life that suits the individual best. Although this has been available in the past it was normally always at a considerable additional cost to the individual or their employer. The reforms will see these figures reduced dramatically. The reforms will also provide greater clarity on
the use of apprenticeships for providing Continuing Professional Development (CPD) training for existing staff. This makes them far more accessible for this purpose. Coupled with the rise in the number of higher level apprenticeships across a much wider range of careers, this is likely to see a sharp rise in the number of ‘apprentices’ who are already well established within their chosen career pathway. This will not result in a change of job title or pay but will allow the member of staff to use an apprenticeship as a vehicle to personal development. The benefits for businesses investing in up-
skilling their workforce through training programmes are notable.
14 Chamber Profile July/August 2017
regular training interventions for their staff will see a positive impact’
practices, developing soft skills, small tweaks to process or improving knowledge, employers who invest in regular training interventions for their staff will undoubtedly see a positive impact on overall productivity and competitiveness. As well as the practical benefits, training can empower employees and provide a sense of value; again these small gains accumulate within the bigger picture. There will no doubt be a
steep learning curve for both employers and training providers. Levy payers will need to ensure that they are aware of all the opportunities that exist for them to use it and how they can best add value to their organisation. Non-levy paying businesses may find qualifications,
previously inaccessible due to high fees, more available as the reforms will see the fees 90% funded by the Government. This will enable these businesses to access vital, value adding, CPD opportunities for their staff. City College has a comprehensive portfolio of
training underpinned by a wealth of industry knowledge and experience.
As one of the largest UK providers of
apprenticeships, working with more than 1,300 employers we are well-placed to support businesses of all sizes across a range of industries as they get to grips with the changes. Ultimately, the true potential of
apprenticeships will only be reached if all stakeholders, from Government to provider to employer, learn, work and adapt together to ensure that these programmes will allow us all to get what we ultimately want - a high-quality, highly skilled and highly valuable workforce.
If you’d like to find out about the apprenticeship reforms and how they may impact your business, or you’re thinking about ways to improve productivity or business practices, do come and chat to us about the breadth and depth of training we offer. Call our Business Engagement team on 01752 305026 or e-mail
employers@cityplym.ac.uk
*Any business that has, or is part of a group that has, an annual wage bill of £3m began paying an Apprenticeship levy of 0.5% on 1 April 2017. This levy can be used to pay for Apprenticeships. ** Any business with an annual wage bill of less than £3m will not be required to pay the Apprenticeship levy.
Tell us your views on the Apprenticeship Levy
The Government has for some years been encouraging all employers to take on apprentices. Many employers have seen the value of training young people and have responded accordingly. This year the Government changed how employers would be assisted in taking
on apprentices when they introduced the Apprenticeship Reforms. For larger employers this involves them paying an Apprenticeship Levy. For smaller employers some will now need to pay ten per cent of the cost of training, although the amount of money available for apprenticeships is capped so some employers may experience challenges in securing funding. Devon Chamber wants to submit representations to the Government about these changes and therefore wants to hear your views.
If you would like to communicate your views please email Chief Executive, George Cowcher.
george.cowcher@
devonchamber.co.uk
THE POLITICAL POLICIES THAT AFFECT THE REGION
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