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Calls for change to apprenticeships after numbers fall by 59% Calls for change to apprenticeships after numbers fall by 59%
(about 1 month later)
Employers and unions call for rethink to government policies, saying drop in trainee numbers is down to complex rules and difficulty in accessing funds
Sarah Butler
Thu 23 Nov 2017 18.34 GMT
Last modified on Sat 2 Dec 2017 17.49 GMT
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Employers and unions have called for a rethink of the government’s apprenticeship policies after a 59% fall in those taking up trainee posts since a new scheme was launched in April.Employers and unions have called for a rethink of the government’s apprenticeship policies after a 59% fall in those taking up trainee posts since a new scheme was launched in April.
Just 48,000 people started an apprenticeship in the final three months of the educational year to July 2017, compared with 117,800 in the same period a year before. The biggest drop came in the lowest level “intermediate” apprenticeships, which dived by 75%, compared with a 48% drop in the most advanced training courses.Just 48,000 people started an apprenticeship in the final three months of the educational year to July 2017, compared with 117,800 in the same period a year before. The biggest drop came in the lowest level “intermediate” apprenticeships, which dived by 75%, compared with a 48% drop in the most advanced training courses.
Critics of the scheme say the increased costs and complexities are deterring employers from creating apprenticeship posts.Critics of the scheme say the increased costs and complexities are deterring employers from creating apprenticeship posts.
From April, businesses with a payroll of more than £3m have been charged 0.5% of their payroll towards the apprenticeship levy. The measure aims to raise £3bn annually for four years to fund 3m places for apprentices.From April, businesses with a payroll of more than £3m have been charged 0.5% of their payroll towards the apprenticeship levy. The measure aims to raise £3bn annually for four years to fund 3m places for apprentices.
Under the new scheme, one day a week of training must be carried out away from the workplace and employers with 50 or more staff must contribute 10% of the cost of training. Employers say it is tough to cover the cost of hiring staff to cover these absences as well as training.Under the new scheme, one day a week of training must be carried out away from the workplace and employers with 50 or more staff must contribute 10% of the cost of training. Employers say it is tough to cover the cost of hiring staff to cover these absences as well as training.
The manufacturers’ organisation EEF said the fall in apprenticeships revealed by the Department for Education on Thursday were “shocking but frankly unsurprising”.The manufacturers’ organisation EEF said the fall in apprenticeships revealed by the Department for Education on Thursday were “shocking but frankly unsurprising”.
Verity Davidge, head of education and skills policy at EEF, said: “Accessing the funding has proven complex and difficult to unlock in time and employers have struggled to get their heads around the complex rules and restrictions in accessing funds.”Verity Davidge, head of education and skills policy at EEF, said: “Accessing the funding has proven complex and difficult to unlock in time and employers have struggled to get their heads around the complex rules and restrictions in accessing funds.”
Helen Dickinson, chief executive of the British Retail Consortium, said the drop in apprenticeships confirmed the retail industry’s view that the levy, in its current form, was not working.Helen Dickinson, chief executive of the British Retail Consortium, said the drop in apprenticeships confirmed the retail industry’s view that the levy, in its current form, was not working.
“A lack of flexibility in what the funds can be spent on is preventing retailers from making the most of apprenticeships,” she said.“A lack of flexibility in what the funds can be spent on is preventing retailers from making the most of apprenticeships,” she said.
Workers’ rights groups have suggested that the levy is weeding out the use of low-quality apprenticeships which enabled employers to source cheap labour, because the minimum wage for apprentices is below the national minimum wage.Workers’ rights groups have suggested that the levy is weeding out the use of low-quality apprenticeships which enabled employers to source cheap labour, because the minimum wage for apprentices is below the national minimum wage.
Tony Burke, assistant general secretary for manufacturing at the Unite union, said it had concerns about the lowest grade of apprenticeships and whether these were beneficial. He added that there was “a great deal of frustration” with the new scheme.Tony Burke, assistant general secretary for manufacturing at the Unite union, said it had concerns about the lowest grade of apprenticeships and whether these were beneficial. He added that there was “a great deal of frustration” with the new scheme.
“Some businesses view this as a disaster. The levy has made things more complex so they are not taking apprentices on,” Burke said.“Some businesses view this as a disaster. The levy has made things more complex so they are not taking apprentices on,” Burke said.
He said the problems with the scheme had been exacerbated by uncertainties about the economic outlook caused by Brexit.He said the problems with the scheme had been exacerbated by uncertainties about the economic outlook caused by Brexit.
The DfE said the new scheme should not be judged on the basis of a few months’ worth of data.The DfE said the new scheme should not be judged on the basis of a few months’ worth of data.
“There has been over 1.1m apprenticeship starts since May 2015 and we remain committed to reaching 3m apprenticeship starts in England by 2020,” the DoE said.“There has been over 1.1m apprenticeship starts since May 2015 and we remain committed to reaching 3m apprenticeship starts in England by 2020,” the DoE said.
“We know that the last year has been a period of huge change for employers but it is right that employers are taking their time to plan ahead and maximise the opportunities the apprenticeship levy can bring. Feedback we have had from levy payers has shown they are doing this and they plan to increase their demand for apprenticeships.”“We know that the last year has been a period of huge change for employers but it is right that employers are taking their time to plan ahead and maximise the opportunities the apprenticeship levy can bring. Feedback we have had from levy payers has shown they are doing this and they plan to increase their demand for apprenticeships.”
ApprenticeshipsApprenticeships
Retail industryRetail industry
Education policyEducation policy
Trade unionsTrade unions
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