In April 2017 an apprenticeship levy was introduced. It requires companies with a £3m payroll or above to pay 0.5% of it to the government in return for vouchers, which smaller companies can also access, to spend on apprenticeships . . .
The EEF’s summary – from the employer’s perspective
The FT’s Business editor writes: “It is now clear that the UK government’s apprenticeship levy simply isn’t working. Apprenticeships fell by more than a quarter in the last three months of 2017 year on year, having fallen by 60% in the previous three months. Since April, when the levy was introduced, there have been just 158,000 apprenticeship starts, compared with 269,000 in the same period a year before”.
Some universities are now offering degree apprenticeships
These offer the opportunity to gain industrial knowledge and practical, relevant experience by combining study with on-the-job training. Leeds Beckett University is one such provider for non-levy and levy paying organisations in Leeds City Region.
And at post-graduate level
The Engineering Integrity Society events have recently included Young Engineers Seminars in January 2018, July 2017, December 2016, for newly qualified engineers from different companies who are encouraged by more senior engineers to attend. EIS is a long established charitable society, which focusses on the areas of fatigue, testing and durability. EIS members have many years of experience in these fields gained through working in some of the best-known companies in the industry.
“The levy has led employers to recoup the cost of existing in-house training schemes by relabelling them as apprenticeships”
This Times leader also points out: “Ofsted cannot cope and the reasons are not complicated. The new apprenticeships target has increased its workload but its budget has been cut by 38% over the last two parliaments: it stood at £200 million in 2011 and will fall to £124 million by 2020. Reversing this cut would be easy to justify if the apprenticeship levy were working, since this would in due course drive up wages and tax revenues as well as skills. But the levy is not working. It was meant to incentivise large employers to invest more in apprenticeships by requiring them to pay into a central fund from which they can claim back some or all of their training costs.”
MP Meg Hillier, chairman, adds that parliament’s Public Accounts Committee has found that private providers are paid with taxpayers’ money to deliver public services but that government sometimes fails to monitor the results or penalise those that do not deliver.
A number of private providers have failed – the most widely publicised being First4Skills (funded by the government’s Skills Funding Agency) – and including Talents Training and Shared Educational Services Limited – leaving the apprentices and the institutions which hired them in serious difficulties.
Undeterred, last month the Cabinet Office launched a policy paper: Shared Services strategy for government.
Mission impossible? “The government is seeking to boost the number of apprenticeships at the same time as slashing the budget for Ofsted who are responsible for enforcing quality”
This is the charge made in another Times article, by Joe Dromey, senior research fellow at the Institute for Public Policy Research, who has given evidence to the education select committee’s inquiry into apprenticeships.
The FT’s Business editor believes that the need for training and reskilling is imperative at a time when manufacturing is at a turning point, with the industrial internet about to revolutionise processes and business models and the integration and linking of big data, analytical tools and wireless networks with physical and industrial equipment.