SECTOR FOCUS: SKILLS & TRAINING
Apprenticeships - worth fighting for
By Mark Boulting, MD Skills Group
Apprenticeships as a brand have undergone significant changes since the last government reasserted their commitment to the three million starts target in their manifesto. Given the political turmoil that has taken place in the last 18 months, it is easy to think that the apprenticeship reforms, and the levy in particular, have been put on the back burner while other priorities are addressed. However, nothing could be further from the truth. Employers with wage bills over £3m a year started
paying their levy at 0.5% of payroll in April and were able to recruit apprentices in May of this year. If you are not in scope for the levy then the mandatory requirement to pay 10% of the training costs also commenced in May. While there are some exemptions for 16 to 18-year-olds, and for employers of under 50 staff, it is impossible to miss the direction of travel. The burden of funding apprenticeship training is being shifted onto the employer. It is also worth remembering that this was
sold to employers as giving them control and both the CBI and FSB were enthusiastic supporters in the early stages. However, unsurprisingly, central government failed to relinquish control while still managing to collect the funding. Worryingly the number of new apprenticeship standards approved at the present time is woefully low despite the efforts of employers who have designed them. In addition, the Department for Education has brought in a rule that all apprenticeships must include a minimum of 20% off-the-job training. Both employers and providers have argued strongly against this, as it is inappropriate in many cases, but our concerns have been rejected. In addition, a report published in May of this year by
the Institute of Public Policy Research recommends that the levy should be extended to smaller employers and increased for larger ones. While the report has a number of sensible recommendations, this one seems to open the door for the Government to further shift the burden of funding the apprenticeship programme to employers. Government seems to have forgotten that it has an obligation to 16 to 18-year-olds. If they were being educated in school or college the funding comes 100% from the public purse. Ensuring our young people are educated is one of the core responsibilities of Government, but this Government, and the one before it, has managed to convince us all that it can delegate that responsibility to employers. The result of this is a significant shift
to older apprenticeships, and reduction in under 19s to below 2011 levels. Indeed, every indication is that in the May to July 2017, quarter the number of young apprentice starts has taken another devastating drop. Most employers that we work with are very willing to help young people to
24 Chamber Profile September/October 2017
commence their career with an apprenticeship, however, the government is making it increasingly difficult to do so. In spite of this difficult and confusing landscape,
many employers are continuing to engage with apprenticeships and supporting young people into sustainable and rewarding careers while addressing their own staffing and productivity challenges. My advice to those considering apprenticeships is to do it for the right reasons and not just to spend their levy – put quality above quantity and ensure that genuine skill acquisition and learning takes place. It is essential to plan training that works for your business as well as the apprentice, and see it as any other investment that you make – look for quality and value for money.
‘The burden of funding
apprenticeship
training is being shifted onto the employer’
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