Apprenticeships in England April 2014 Geoff Fieldsend geoff.fieldsend@blueyonder.co.uk All images © Mat Wright Skills and training are devolved policy areas. This presentation focuses on England only UK population: 63m UK working population: 32.5m UK population 15-19: 4m England population: 53m www.britishcouncil.org 2 Apprenticeships have evolved over centuries Employer owned, largely male, largely ‘blue collar, largely young and involving time serving and indentured employment until the 1980s… …when economic circumstances led to mass youth unemployment and the introduction of the Youth Training Scheme (YTS) In the nineties the government tried to reintroduce apprenticeships by ’rebranding’ higher level YTS as modern apprenticeships and removed the need for time serving… This rebranding continued through so many manifestations… …that eventually a review was held to get back to the original features that (still) meant apprenticeships were held in high esteem and led to rewarding working lives www.britishcouncil.org 3 The current state of play In 2012/13: 510,000 apprenticeship starts 10,000 less than the number of starts in the 2011/12 academic year; but 231,000 more than in the 2009/10 academic year 45% are aged over 25 compared with 18% in 2009/10 The majority of apprenticeships are in the service sectors (eg business administration and retail) 55% are female www.britishcouncil.org 4 A three way deal Apprenticeships are paid jobs that incorporate on and off the job training. The Government funds all or part of the off-the-job training A successful apprentice will qualify with a nationally recognised qualification on completion of their contract. The government pays a proportion of the training costs depending on age. The Employer provides a paid job, with training and support for the employee The Individual works, often for a reduced wage (minimum of £2.68 per hour) for the duration of the Apprenticeship 100% of the training costs if the apprentice is aged 16-18 50% of the training costs if the apprentice is aged 19-24 Up to 50% of the training costs if the apprentice is aged over 25 The employer will normally cover any remaining training costs Apprentices receive below the minimum wage if they are under 21 www.britishcouncil.org 5 Until 2010, England’s was a unique programme with relatively low levels of penetration compared to overseas countries Australia Austria England France Germany Ireland Switzerland 39 33 11 17 40 11 43 English model: Minority initial vocational training route All age - high number of employed adults State funding goes through providers, employers pay apprentices Available in 250 occupations Developers define components (in line with legal quality requirements) Skills Funding Agency contracts with registered providers Assessment, matching, inspection, certification roles split between a range of bodies German model: Main initial vocational training route Two thirds of apprentices under 25 Employers pay apprentices (wages – lower) and membership fee to Chambers (funds exams); regions fund vocational schools. Incentives paid direct to employers Available in 348 occupations – focused on learning (not qualifications) Social partnerships define content, assessment, wage levels, and delivery (in line with legislation) Employers/employer bodies responsible for assessment, matching, contracts, inspection Australia, England and France all offer apprenticeships at more than one level of skill. Of these, England is the only country where apprenticeships at Level 2 far outnumber those at Level 3. In Australia, most apprenticeships are at Certificate 3 level and in France just under half are at Level 2. In Austria, Germany and Switzerland (dual system countries), as well as in Ireland, almost all apprenticeships are at Level 3. 6 The recent expansion of numbers reflects has been a considerable shift in the profile of learners by age, level and sector i) Apprenticeship starts by age 500,000 But as a result did the term ‘apprenticeships’ start to lose its meaning and some of its lustre? 450,000 400,000 350,000 300,000 25+ 19-24 16-18 250,000 200,000 150,000 100,000 50,000 0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 (Provisional) ii) Apprenticeship starts by level and age iii) Apprenticeship starts by subject / sector 120,000 140,000 Business, Admin / Law 100,000 120,000 80,000 Retail 100,000 Health, Public Services and Care 80,000 Level 2 16-18 Level 2 19-24 Level 2 25+ Level 3 16-18 Level 3 19-24 Level 3 25+ 60,000 40,000 60,000 Engineering and Manufacturing 40,000 20,000 Construction 20,000 0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 (Provisional) 0 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 (Provisional) Source: BIS Statistical First Release 7 Apprenticeship Growth For internal British Council use Source: The Economist www.britishcouncil.org 8 The Richard Review (2010) recommendations Apprenticeships should only refer to workers starting a new job Each apprenticeship should: Comprise one graded qualification for each occupation Be based on simpler standards Be based largely on assessment at the end of the training period And involve an independent test The relevant qualification should be based on an employer competition All apprentices must reach level 2 in Maths and English Funding should be routed via the employer ideally through the tax system There should also be a new entry programme to employment Building on success… Government’s planned investment in 2013‐14 is over £1.5bn. Over 850,000 Apprenticeship participants in 2012/13. Over 220,000 workplaces employ an apprentice. Advanced Level apprentices earn between £77,000 and £117,000 more over their lifetime than those with lower level qualifications; this rises to £150,000 for those doing Higher Apprenticeships Employers: 70% report higher productivity and improved quality of product/service Economy: National Audit Office Report estimates that adult Apprenticeships deliver £18 of economic benefits for each £1 of Government investment. www.britishcouncil.org 10 Whilst continuously improving…. Standards designed by employers will replace existing Frameworks. New standards will be clear and concise (around one page A4). Typically two thirds of assessment will be at the end of the Apprenticeship. All Apprenticeships will last a minimum of 12 months. Apprenticeships will be graded: Pass, Merit, Distinction Giving employers the buying power by routing funding through them Trailblazer projects led by employers and will involve both large and small businesses and professional bodies. The aim is that all new Apprenticeship starts from 2017/18 will be on the new programme www.britishcouncil.org 11