Apprenticeships

APP 24

Written evidence submitted by the Financial Skills Partnership (FSP)

Executive Summary

1. In order to improve the quality of Apprenticeships, the Financial Skills Partnership (FSP) suggest the following actions:

· 100% funding for apprentices aged 19 and above.

· National Apprenticeship Service (NAS) to include Level 6 Apprenticeships.

· NAS and devolved administrations to have UK wide Apprenticeship frameworks.

Introduction

2. The Financial Skills Partnership (FSP) is an impartial, employer-led organisation, which aims to enhance professionalism and talent for finance, accountancy and financial services across the nations and regions of the UK. It acts as a link between industry, government and education.

3. The FSP articulates the voice of employers on skills in finance, accountancy and financial services, works with awarding organisations to develop vocational qualifications and develops, quality assures and issues Apprenticeship frameworks in the sector we represent. We currently have six Apprenticeship frameworks in England and 6960 starts across our frameworks in 2010/2011 – provisional figures from the data service - http://www.thedataservice.org.uk/statistics/statisticalfirstrelease/sfr_supplementary_tables/Apprenticeship_sfr_supplementary_tables/

· How successful has the National Apprenticeship Service been since it was created in April 2009? Has it helped bridge the gap between the two funding Departments? (BIS and Department for Education)

4. The appointment of John Hayes MP, Minister of State for Further Education, Skills and Lifelong Learning (jointly with the Department for Education), to the role of minister for apprenticeships across the two funding Departments has helped bridge the gap of apprenticeships for those aged 16-18 and 19+.

5. The National Apprenticeship Service (NAS) has been successful in working with large employers in the sector we represent, particular in terms of engaging them in the apprenticeship programme, in particular with HSBC, PWC and Santander. We have supported the NAS staff so that they fully understand the needs of our sector which we are best placed to articulate.

6. NAS has also been responsible for the creation of the Higher Apprenticeship Investment Fund which has allowed a vocational pathway to be developed which can act as an alternative route into the profession. This allows wider access for individuals to become qualified in a chosen career and also allows employers additional recruitment and training channels for succession planning and the development of productive staff which will contribute to UK PLC.

· Is the extra funding promised by the Coalition Government necessary for apprenticeships? How can this funding best be spent?

7. Yes, extra funding for apprenticeships is necessary to develop new higher level apprenticeship frameworks and support employers, in particular SMEs, who require funding support to contribute towards the training of their personnel. This funding can best be spent by contracting directly with employers in order for them to become owners of the apprenticeship programme and work in their local communities to promote apprenticeships to all people, especially the young, although the minimum contract values currently set for employers are too high.

8. Funding can also be best spent by centralising the various systems the stakeholders need to use in terms of registering apprentices.

· Are apprenticeships of a high enough quality to benefit apprentices and their employers? Should there be more Level 3 apprenticeships?

9. Apprenticeships in the financial services, accounting & finance sectors are of high enough quality to benefit apprentices and their employers as the frameworks have been developed by the Financial Skills Partnership in conjunction with employers. The appropriateness is evidenced by the feedback we have received from employers and apprentices themselves.

10. The apprenticeship programme has resulted in individuals being given the opportunity to train in their chosen career and in the creation of productive employees. Employers are then better placed to implement a strategic approach to succession planning. Each sector has its own needs, therefore apprenticeships at various levels need to be developed according to those sector needs and have a common framework across the UK nations, as many employers operate UK wide.

11. We would also argue for higher than level 3 or even level 4 Higher Apprenticeships to Level 6 for our sector, both in accounting and financial services, as many roles are at this higher level, please refer to our work with UKCES – Building Future Skills for Accountancy - http://www.ukces.org.uk/publications/building-future-skills-in-accountancy

· Apprenticeship bonuses – how should they function? Will they encourage the involvement of more small and medium sized businesses to take on apprentices? If not what will?

12. We feel that apprenticeship bonuses will encourage small and medium sized business to take on apprentices, but this support would need to be maintained on an ongoing basis and not seen as a ‘one off’ solution in the current economic climate.

· Is the current funding arrangement for training of apprentices of 100% for 16-18 year olds and 50% for 19-24 year olds appropriate?

13. We feel that some individuals aged 19 and above are disadvantaged by not being eligible for 100% of funding due to their age. We feel this opportunity should be available to all who do not hold a degree or relevant qualification at the level of apprenticeship they are interested in undertaking. 97% of HSBC’s current apprentices, (300+) are aged 19 and above and 88% of HSBC’s entire apprenticeship cohort two months into programme already believe the programme will up-skill them.

14. Some apprentices do not come to the decision to train in a particular career, such as accountancy, until 19 or over. It is therefore important that 100% of funding is available for them. 

15. Such an example is from the Co-operative Group where it is at this age and above that in general people who either join the company or are existing employees in the finance communities of the different businesses are looking to start developing their career in accountancy and start the accounting apprenticeship.

16. This is also important at a time when individuals have lost their previous jobs and need support to fund them through a work related qualification with a new employer.

1 February 2012