Apprenticeships

APP 36

Written evidence submitted by the National Specialist Contractors’ Council (NSCC)

Introduction

1. The National Specialist Contractors’ Council (NSCC) is an umbrella body comprising 32 specialist trade organisations (a list of which can be found at appendix 1 on page 6) that collectively represent 7,000 businesses within the construction industry. Many of these businesses are SMEs offering a range of construction apprenticeships and directly employing apprentices.

2. NSCC has representation on the Strategic Forum for Construction; the ConstructionSkills Board and Committees; and the Cross-Industry Construction Apprenticeship Task Force (CCATF). NSCC also provides the secretariat for the CCATF’s Specialist Apprenticeship Working Group, which has been tasked with identifying barriers to the uptake of apprenticeships in the specialist sector and appropriate practical solutions for overcoming those barriers.

3. NSCC welcomes the opportunity to submit evidence to the inquiry into apprenticeships being undertaken by the Business, Innovation and Skills (BIS) Committee and would like to raise the following points on behalf of Specialist Contractors.

4. NSCC would be happy to provide further information on any of the points raised in this response if required by the BIS Committee.

Executive Summary

5. The construction industry has received little benefit from the National Apprenticeship Service (NAS) to date because the NAS has not effectively engaged with trade associations or employers in the industry and is not fully aware of all of the construction apprenticeships available.

6. The lack of a UK-wide, cross-industry definition of an apprenticeship results in inequality of funding, support and achievements across industry sectors.

7. Additional funding for apprenticeships is essential to engage and support employers, particularly SMEs.

8. Greater clarity is required on the funding available, who is eligible for it, how it can be accessed and who the ‘guardian’ of the funding is.

9. Level 2 apprenticeships are suitable and sufficient for many individuals and occupations in construction and should continue to be supported.

10. Where appropriate, and where a qualification is available, individuals should be encouraged and supported to progress to a Level 3 apprenticeship; however, Level 3 apprenticeships should not be deemed to be the minimum standard to be achieved.

11. Apprenticeship bonuses of an appropriate value which are awarded on specific achievements would encourage SMEs to employ and invest in apprentices.

12. There should be parity for all apprentices with no discrimination based on age or trade, and employers of apprentices above the age of 18 should be eligible for the same level of financial support as employers of those between 16-18 years of age.

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

13. The construction industry has an established history of investing in and delivering apprenticeships. Employers traditionally rely on ConstructionSkills to provide information, guidance, funding and support on all aspects of apprenticeships and as a result the industry has not realised any particular benefit from the National Apprenticeship Service (NAS).

14. NSCC has made efforts to engage with the NAS; however, the NAS’s lack of understanding of Specialist Apprenticeship Programmes (SAPs) and its poor interface with construction have meant that ConstructionSkills and the relevant trade associations have undertaken the work necessary in developing and delivering construction apprenticeships and engaging employers in the apprenticeship process. We believe that this has led to the NAS missing significant opportunities to benefit from the knowledge and experience of a sector that has a high achievement rate for apprentices. It has also meant that the construction industry has not received the same level of support that has been provided to other industry sectors for engaging employers and potential apprentices.

15. The NAS should be knowledgeable on the range of apprenticeships available across all sectors to ensure that potential apprentices have a clear understanding of what options are available to them and that the maximum number of potential employers are being engaged to offer apprenticeships.

16. There is an opportunity for the NAS to work in partnership with trade associations to provide support for engaging with employers and potential apprentices to meet apprentice recruitment targets. Information on the various sources of funding available and any Government support that can assist trade associations to meet sector-set targets would be welcomed.

17. The construction industry has a clear understanding of what constitutes an apprenticeship and, as part of the work of the Cross-Industry Construction Apprenticeship Task Force (CCATF), a definition of an apprentice was adopted and endorsed by the industry which has helped to provide consistency. To ensure a clear and consistent understanding for all references to apprenticeships, NSCC would recommend that the NAS adopt the construction industry definition for an apprentice across all industries.

18. The definition of an apprentice agreed by the construction industry is:

"An individual undertaking an approved, structured programme of training leading towards a recognised qualification. The individual is employed and bound by a legal contractual agreement for a specific amount of time in return for instruction in a skilled, manual trade. With instruction, assessment and appropriate supervision, the individual should progress to become a qualified craftsperson in the trade."

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

19. There is confusion regarding the extra funding that has been promised, specifically who is eligible for it and how it can be applied for. When additional funding for apprenticeships is announced, it would be extremely helpful to understand what the funding is available for, how it can be accessed and who the ‘guardian’ of the funding is.

20. Additional funding for apprenticeships is essential to support employers within the construction industry that commit to taking on an apprentice. The recession has resulted in a high number of redundancies and, in order to avoid a severe skills shortage as the economy returns to growth, employers need to be training their future workforce now. SMEs, in particular, require substantial support to employ and train apprentices, particularly in the first year when the apprentice is unqualified, learning his or her skill and being supervised at all times by an experienced worker. Construction apprentices receive much of their training on-site which is often more costly and complex to administer, monitor and supervise than training undertaken in a factory or workshop environment.

21. The Government should provide greater clarity on how the funding is to be distributed across the various industries that employ apprentices to ensure that all industries are appropriately supported. It should also take steps to ensure that it is recognised apprenticeships, as opposed to training programmes, that receive the funding.

22. The construction industry has a wide range of highly specialist trades and many of its apprentices are mature workers over the age of 18. Under the current funding arrangements for apprenticeships, employers of these apprentices are financially penalised. NSCC would like to see employers of apprentices that are aged over 18 years receiving the same level of funding as employers of apprentices aged 16-18 years. This would drastically increase the attractiveness and viability of apprenticeships in the specialist sector.

23. Specialist apprenticeships are often more expensive to deliver due to the more specialist nature of the equipment and skills involved. This lends further weight to the argument for equitable funding.

24. Specialist trades and occupations develop apprenticeships that meet the definition of a traditional apprenticeship but do not always attract the same level of funding. The NAS could assist in benchmarking and recognising apprenticeships that should be eligible for apprenticeship funding.

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

25. The construction industry has an established history of delivering apprenticeships and works hard to ensure the quality of its apprenticeships meet a standard that many other industries aspire to reach. It sees apprenticeships as the most effective means of equipping a new entrant with the skills needed to undertake their chosen trade to a high standard and, as such, the quality of apprenticeships is of paramount importance.

26. It is essential that there is flexibility and choice available to both the employer and the apprentice regarding the level of training they choose to undertake. Level 2 apprenticeships are of sufficient quality for many individuals and occupations within construction. NSCC would support individuals being encouraged to progress to a Level 3 apprenticeship where appropriate; however, it needs to be recognised that many trades do not have access to a Level 3 apprenticeship and that this is entirely appropriate for that specific trade.

27. The decision as to what level of apprenticeship is appropriate for any individual sector should be made by that sector as they are the experts in the particular trade.

28. An issue for the construction industry is the quality and standards achieved by those fulfilling the role of a managing agency. ConstructionSkills, in its role as a managing agency for construction apprenticeships, has a higher achievement rate and reports more effectively on its outputs than many other managing agencies. The specialist sector would like to see ConstructionSkills as the principal or sole managing agency for construction apprenticeships, and NSCC believes that this could be achieved without disadvantaging many of the multi-occupation colleges and training providers that currently fulfil a managing agency role.

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

29. SMEs that invest in apprentices should be rewarded appropriately and a bonus scheme would be an attractive proposition to smaller businesses.

30. For many SMEs, a lack of financial support means that they are unable to invest in an apprentice. However, they still require a trained and skilled workforce which they often recruit once trained, leaving a limited number of committed employers to provide the bulk of the investment in apprenticeship training. By offering additional funding and support such as apprenticeship bonuses, more SMEs would be encouraged to develop their own apprentices.

31. Any bonus should be of an appropriate value to make it worth claiming and employers would need to understand at which stages of the apprenticeship a bonus payment would be triggered i.e. at the end of the first year and/ or achievement of an NVQ/ SVQ.

32. Within construction, employers are eligible for apprenticeship grants through the CITB-ConstructionSkills levy and grant system. Consideration should be given to distributing any bonuses through the CITB-ConstructionSkills grant system as this is already in operation and well established in the construction industry.

33. The removal or reduction of NIC payments for apprentices would be an alternative to a cash bonus.

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

34. The current two-tier funding arrangement has significantly reduced the attractiveness of apprenticeships to employers in the specialist sector and is detrimental to apprenticeship uptake in the construction industry.

35. Many specialist apprentices are mature workers because the nature of specialist trades often requires more experience and maturity. They generally come into the industry later or transfer from a different sector of the industry, meaning that many are older than 18 and a significant proportion are older than 25. Under the current system, employers of apprentices aged over 18 years are financially penalised for being more mature and the SFA will not provide enhanced funding for those apprentices who have had previous employment.

36. NSCC made a recommendation to the Cross-Industry Construction Apprenticeship Taskforce (CCATF) that there should be parity in all areas for specialist apprentices with no discrimination based on age or trade and that the employers of apprentices above the age of 18 should be eligible for the same level of financial support as employers of those between 16-18 years of age. NSCC would like to see the Government endorse and implement this recommendation.

2 February 2012

Appendix 1 - List of NSCC Member Organisations

ACIFC	-	Association of Concrete Industrial Flooring Contractors
ADCAS	-	Association of Ductwork Contractors & Allied Services
AIS	-	Association of Interior Specialists
ASA	-	Association of Sealant Applicators Ltd
ASFP	-	Association for Specialist Fire Protection
ASUCplus	-	Association of Specialist Underpinning Contractors plus
ATLAS	-	Association of Technical Lightning & Access Specialists
BBSA	-	British Blind and Shutter Association
BDA	-	British Drilling Association
BGA	-	British Geomembrane Association
BWF	-	British Woodworking Federation
CCS	-	Confederation of Construction Specialists
CEDA	-	Catering Equipment Distributors Association
CFA	-	Contract Flooring Association
CONSTRUCT	-	CONSTRUCT Concrete Structures Group
CRA	-	Concrete Repair Association
DHF	-	Door & Hardware Federation
DSA	-	Drilling and Sawing Association
FASET	-	Fall Arrest Safety Equipment Training
FeRFA	-	Resin Flooring Association
FPS	-	Federation of Piling Specialists
GGF	-	Glass and Glazing Federation
INCA	-	Insulated Render & Cladding Association
MAC	-	Mastic Asphalt Council
NFRC	-	The National Federation of Roofing Contractors Ltd
NFTMMS	-	National Federation of Terrazzo Marble & Mosaic Specialists
PDA	-	Painting and Decorating Association
RIDBA	-	Rural & Industrial Design & Building Association
RSMA	-	Road Safety Markings Association
SAEMA	-	Specialist Access Engineering and Maintenance Association
SPRA	-	Single Ply Roofing Association
TTA	-	The Tile Association

NSCC

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