We are at a critical stage in terms of where the government goes with its apprenticeship programme. It has been shot through with problems since the levy was introduced in 2017. Applied to employers with an annual wage bill above £3m, their contribution was meant to help fund three million new apprenticeships.
Yet concerns now proliferate about where the money is being spent and how much is available, particularly for non-levy payers, most of them small businesses crucial to lower-level apprenticeships—and to economic growth. In addition, there is still a continued month-on-month decline on the pre-levy figures for new apprenticeship starts. Education Secretary Damian Hinds has now admitted the nebulous three million target is out of reach.
Of course, it is crucial to encourage provision of apprenticeships. But they must be of the right kind—and the system must work properly.
The National Audit Office told ministers in March there was a clear risk the apprenticeship programme is now financially unsustainable. Meanwhile, the Institute for Apprenticeships and Technical Education has warned of an overspend of £500m this year. Apprenticeships Minister Anne Milton said in January she thought the budget would be “alright until July.” Yet when I questioned her in parliament in late June we were told that she was “aware of the budgetary pressures on the system” but no real assurances were forthcoming.
A major worry is the dramatic decline in uptake of Level 2, GCSE-equivalent apprenticeships since the introduction of the levy, down by more than 40 per cent in the first six months of 2018-9, compared to 2016-7. There has been an increase in certain higher-level apprenticeships. But while it is important to scale up higher and degree-level vocational training (tiers 4-7), levels 2 and 3 are crucial, for example in hospitality and tourism and also in health and social care. These service sectors will be essential growth points in the 2020s and apprenticeships of this kind are critical for my constituency in Blackpool, and for many other left behind towns across the UK. Indeed these are vital areas for our economy more widely. Whatever else happens with Brexit or automation, we will need to retrain millions of adult workers as the skills landscape changes.
“We have 750,000 young people not in employment, education or training”To meet these local needs the government must look more closely at devolution across the board, including on apprenticeships. The government needs to enable, not micromanage, vocational learning, and give local areas greater control. It is the smart way to help community growth and cohesion, provided that local authorities, mayors and combined authorities have the capacity and competence to take it forward.
The crash in the number of opportunities for young people is undermining social mobility, restricting the numbers in the pipeline of progression that gets them into better jobs. As the Public Accounts Committee has said, the way the apprenticeships programme is evolving “risks leaving behind people with lower skills and those from disadvantaged communities.”
We have 750,000 young people aged 16-24 not in employment, education or training. Millions of adults lack basic skills. Many would benefit from improved access to apprenticeships and we simply cannot afford to write off both groups as potential learners. But change won’t happen unless we have outreach programmes such as traineeships, with an experienced staff member playing an inspirational role, to get others on to a route of progression. In addition, we cannot forget other under-represented groups in education such as young carers.
If we are to keep up with our international competitors, getting apprenticeships right and breaking down bureaucratic barriers will be crucial. That’s why Labour has launched its National Education Service proposals and Lifelong Learning Commission, to encourage learning at all ages, free at the point of use. This is essential for future economic health and social cohesion. Apprenticeships are central to that vision.
Read more from our apprenticeships report
