A new Chambers of Commerce report is calling for the government to reform the apprenticeship system to make it fit for the 21st Century.
As the UK celebrates National Apprenticeships Week, it finds that the current framework is too rigid, lacks clarity, neglects higher-level skills and is failing to meet the needs of business.
Among the recommendations it makes to solve the problems are:
- Reforming the Growth and Skills Levy to include funding for short modular training.
- Recognising spending on skills as an investment and delaying the introduction of a lower National Living Wage threshold.
- Using vital intelligence from Local Skills Improvement Plans to future-proof the system.
- Ringfencing funds from the Levy and Immigration Skills Charge for investment in training.
The report, Apprenticeships Report.pdf, makes extensive use of research and analysis by the British Chambers of Commerce (BCC’s) Insights Unit to support its findings. This found that while 67% of businesses were facing skills shortages, more than half of them (52%) do not feel that current training options are plugging this gap.
It also identifies that over a third of businesses (37%) say lowering the threshold for the National Living Wage from 21 to 18 will make them less likely to recruit younger people.
And it finds that government changes to apprenticeships don’t give businesses the flexibility they crave; with 61% saying its reforms would not change their hiring plans. A further 19% said the changes would actually make them less likely to take on an apprentice.
Suzanne Caldwell, Managing Director, Cumbria Chamber of Commerce, and lead on Cumbria’s Local Skills Improvement Plan, said:
“As we celebrate National Apprenticeships Week it’s clear how transformational apprenticeships are, for both businesses and those being trained. Becoming an apprentice provides a direct route for young people into work, to earn and learn, while setting out a clear pathway for their future development – and often enabling them to leapfrog peers who choose other routes such as university.
“For established employees they offer the opportunity to upskill, while remaining productive in their current role – a key reason apprenticeships remain attractive to employers.
“But the system still has many flaws. Take up and completion rates have been falling nationally, and some businesses have turned their backs on it – although apprenticeships are a more popular route here in Cumbria than in many areas.
“The government has recognised it needs to take action. But its proposed reforms don’t go far enough and lack clarity.
“It’s vital that apprenticeship levy funding is given a wider scope for training and that businesses get better support to deal with the financial squeeze that the system brings. There’s also be great, up-to-date intelligence being collected for the latest iterations of Local Skills Improvement Plans to be published this summer that should inform the future of apprenticeships.
“If Chambers’ recommendations are enacted it could increase take up of apprenticeships on both sides and place the whole system on a much firmer footing going forward.”
