Apprenticeships

APP 27

Written evidence submitted by CSCS

1.0 CSCS Background Information

1.1 CSCS was set up in 1995 by the construction industry to maintain a record of construction site workers that achieve (or can demonstrate that they have already attained) an agreed level of competence. The CSCS Card, issued to successful applicants, offers a vital means by which cardholders can record and provide proof of their skills and occupational competence. CSCS card holders are also required to take a health and safety test relevant to their occupation. The aim of the scheme is to help the construction industry reduce accidents an improve competency and safety for individual construction site workers.

1.2 There are currently over 1.7 million cardholders, and CSCS works with 10 affiliated organisations to cover more than 350 construction related occupations. The scheme is now widely used on the majority of construction sites, and all major contractors and homebuilders insist on their usage as it demonstrates their commitment to safe and efficient working. For construction contractors and clients, CSCS cards provide additional security and peace of mind, as a fully carded workforce is a safer and better trained workforce.

1.3 CSCS (core scheme) is managed by CSCS Limited whose Directors all come from the construction industry. It is a Company Limited by Guarantee and therefore has no shareholders. The Board Directors are from:

· Civil Engineering Contractors Association (CECA)

· The Construction Clients Group (CCG)

· The Construction Industry Council (CIC)

· Federation of Master Builders (FMB)

· GMB Union

· National Specialist Contractors Council (NSCC)

· UK Contractors Group (UKCG)

· Union of Construction, Allied Trades and Technicians (UCATT)

· UNITE the Union

2.0 Executive Summary

2.1 Within the construction industry, apprenticeships are the most appropriate way for new entrants to enter this industry to develop their skills, and more good quality apprenticeship programmes are needed. Employers need to be provided with clear messages (and incentivised) regarding the wider benefits of hiring apprentices. More information for employers and general business support would encourage them to also understand the longevity of initiatives such as the Green Deal in terms of it creating future business for them.

2.2 We believe that many employers, who would otherwise be willing to take on an apprentice, are reluctant to do so. This is because they are unable to guarantee full time employment at the end of the programme, or even continued work during the period of the apprenticeship, due to the current economic climate. Again, if employers could understand the wider benefits, and where future business is likely to be generated, they are more likely to be encouraged to take on apprentices.

2.3 We also believe it is important for public sector contracts to demonstrate leadership in this area.

RESPONSES

3.0 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)

3.1 CSCS has no specific evidence to provide relating to the National Apprenticeship Services.

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

4.1 Additional funding for apprenticeships is always welcomed, particularly within the construction industry to encourage achievement of formal vocational qualifications. This then encourages workers to remain within the industry rather than seeing it as a short term option.

4.2 If additional funding did become available for apprenticeships, CSCS recommends that a proportion of this funding is made available to those over the age of 24. There are many new entrants to the industry who are 24+ years old who may have progressed from the role of site labourer and now wish to specialise in a particular trade, or who have switched industries to work in a construction related occupation. At present there is no apprenticeship funding available to this age group. (See 7.1 below).

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

5.1 Construction industry apprenticeships replicate the National Occupational Standards (NOS) which sets the minimum standard for a particular trade. Apprenticeship frameworks generally lead to a nationally recognised qualification which helps drive forward the construction industry’s ‘Qualifying the Workforce’ initiative.

5.2 We strongly believe there should be more Level 3 apprenticeships as this will encourage construction trades people to invest in their careers thereby giving the individual a broader range of skills, a sense of achievement which should in turn persuade these apprentices to remain within the industry to encourage a more highly skilled workforce.

6.0 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?

6.1 CSCS has no specific evidence to provide relating to how Apprenticeship bonuses should function. We do have a view, however, that government initiatives are needed to incentivise smaller businesses to take on apprentices. Construction primarily comprises SMEs, particularly within the more specialist trades. It is vital that smaller enterprises are encouraged to take on apprentices to avoid skills shortages with the construction industry and to drive forward ‘Qualifying the Workforce’. Construction industry SMEs find it difficult, if not impossible, to fund apprentices therefore any form of funding, bonus payment or incentive is welcomed by CSCS.

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

7.1 CSCS’s view is that there should be more focus on providing funding arrangements for apprenticeships for 24+ year olds at 25%. We have anecdotal evidence that many individuals find work within the construction having tried employment in a different industry. They then find it difficult to remain within construction as they are too old to obtain funding to qualify in a particular trade. There are also those who work as casual construction site labourers during their younger years, and then wish to qualify in a particular trade, often during their mid twenties. Those finding themselves in these situations can rarely afford to fund the training they require. They then either leave the industry or obtain work on construction sites where qualifications are left unchecked (usually smaller sites where the majority of fatalities and serious accidents occur.) Philip White, HSE’s chief construction inspector, recently commented on the latest HSE incident statistics saying that around 70% of the fatalities in 2010/11 occurred on small construction sites, with half the deaths occurring on refurbishment projects, including roof maintenance.

7.2 We agree that the funding arrangement as outlined in 7.0 above is appropriate, for the age groups mentioned, however, believe there should be an improved pre-selection process to ensure that those opting for a particular apprenticeship are actually suited to the profession or trade. There are currently a substantial number of younger people who fail to complete construction apprenticeships during the first year as it has not met their expectation. Our understanding is that this can be as high as 25%. Improvements to the pre-selection process would hopefully result in greater efficiencies for the employer, training organisation and apprentice, as well as focusing the limited apprenticeship funds more appropriately.

8.0 Recommendation

8.1 CSCS would support any initiative that demonstrated government showing leadership in this area, for example by requiring a proportion of apprentices to be employed on all public sector contracts.

1 February 2012