Apprenticeships

APP 44

Written evidence submitted by SummitSkills

About SummitSkills

1. SummitSkills Is the Sector Skills Council for the building services engineering sector. We have been created by employers, for employers, to address six key objectives:

· Employer engagement

· Offering expertise and safeguarding standards

· Enhancing quality and delivery

· Raising ambition

· Effectiveness and evolution

· Partnership approach

2. The employer-led approach of SummitSkills gives businesses in the sector a key role in increasing their own and the country's productivity and profitability.

3. Through the establishment of Sector Skills Councils, employers have a direct route to influence strategic planning relating to skills and training. SummitSkills sees submission of evidence to this committee as part of fulfilling that role.

The building services engineering sector

4. The building services engineering sector covers the following industries:

· electrotechnical

· heating, ventilating, air conditioning and refrigeration (HVACR)

· plumbing

and represents 61,000 companies as shown below:

Industry	Number of companies
Electrotechnical	23,000
HVACR	13,000
Plumbing	22,000
Consulting Engineers	3,000
Totals	61,000

5. There are 613,000 employees across the above industries and the sector accounts for approximately 2% of Gross National Product (GNP) with £20bn of work being carried out each year.

Apprenticeships in the sector

6. SummitSkills has developed ninety-five apprenticeship frameworks throughout the United Kingdom. Forty-three frameworks operate throughout England, which comply with the Standard Specification for Apprenticeships England (SASE). These frameworks reflect the mainstream occupations across the building services engineering sector.

7. It takes approximately two years to complete an Intermediate Apprenticeship and four years to complete Advanced Apprenticeships.

8. Between September 2007 and August 2011, SummitSkills issued nearly 40,000 apprenticeship certificates throughout the United Kingdom, with 31,500 of these being completed in England.

Recommendations

9. SummitSkills makes the following recommendations to the Committee for consideration:

a. BIS and DFE should agree on apprenticeships having one clear purpose – to develop individuals through to occupational competence;

b. The volume of apprenticeships should be based on robust analysis of industry’s future labour market requirements;

c. Apprenticeships should continue to employed status only.

d. Programmes for those not in employment should not have "apprenticeship" in the title and they should develop broad based technical and work preparation skills, rather than occupationally specific skills.

e. The Small Employer Incentive and the Employer Subsidy to employ a jobless person should be integrated to provide seamless transition from work experience into an apprenticeship without one acting as a disincentive to the other.

f. There should only be more level 3 apprenticeships if they reflect an industry occupation and if the industry labour market analysis demonstrates they are required.

g. The reduction in funding for 19+ apprentices should scaled back, particularly for employers who take on an apprentice for the first time.

Response to the Committee’s Questions

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)

10. In our view NAS has been broadly successful in distributing funds for apprenticeships. However, providers in our sector complain in particular, about the apprenticeship vacancies system, which creates additional and unnecessary work for them. Providers have well developed and established recruitment processes in place which return good results from both employers and potential apprentices. They are required by NAS to operate the apprenticeship vacancies system in parallel to this which duplicates effort and returns a low response.

11. We do not believe NAS has been successful in bridging the gap between the two funding Departments. BIS sees apprenticeships as developing individuals through to occupational competence. This aligns closely with employers views. The Department for Education sees apprenticeships, in part, as a vehicle to raise the participation age to eighteen. This creates confusion and devalues the status of apprenticeships with employers (particularly those thinking of taking on their first apprentice), potential Apprentices and their parents.

12. SummitSkills feels strongly that apprenticeships should be seen as the primary route into learning and employment in the sector and with potential to provide career progression, based largely on the ability, enthusiasm and commitment of the individual. In addition, for employers, the Apprenticeships value in helping to develop successful businesses should also be made clear.

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

13. The critical factor here is to ensure that the funding is used to support additional apprenticeship places to match labour market requirements. We caution against the temptation to increase apprenticeship numbers by reintroducing initiatives such as Programme Led Apprenticeships which delay employment. They often do not lead to employment, because the numbers of apprentices are higher than the industry requires. They are also unfair to employers who employ apprentices from day one when they require much more on site coaching, instruction and continuous supervision.

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

14. Within building services engineering, the apprenticeships are all of high quality – they reflect employers’ requirements and are based on qualifications which are recognised by the sector.

15. We support the concept of the apprenticeship duration being based on achievement of outcomes rather than being time-served. However, recent reports about apprenticeships achieved within a short number of weeks raise serious questions about quality. At face value, it is difficult to understand how an apprenticeship achieved in 12 weeks equates to our level two frameworks which take around 104 weeks to achieve. Such variations devalue the apprenticeships brand.

16. There should only be more level three apprenticeships if they are needed. Apprenticeships must be based on occupations that exist within the workforce. If it is a new occupation, then there should be a clear employer based rationale and evidence of need. The qualifications which reflect these occupations dictate the level of apprenticeship that is required. Progression to or beyond a particular apprenticeship is also a factor when considering the level. For example, an individual may complete a level two Apprenticeship before progressing onto a level three one if they and their employer wish to do so. Again, the key is that to ensure that apprenticeships reflect industry occupations and the lower level ones are not used as an achievement point en route to higher level ones.

17. The number of apprenticeships required year- on- year should be based on robust labour market intelligence which provides an analysis of labour replacement rates and economic growth forecasts.

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?

18. One of the key factors in employers’ decisions to take on an apprentice is availability of work. Many small and micro businesses operate on order books that are based on the weeks and months ahead, rather than years ahead. In these circumstances an additional payment can make their decision to take on an apprentice a positive one.

19. We suggest that this payment should be linked to retention of the apprentice, rather than simply encouraging them to be taken on for the short term. This will help employers to see the recruitment of apprentices as a long-term investment that will benefit their business.

20. We also suggest that careful consideration is given to the linkage between the Small Employer Incentive and the Employer Subsidy to employ a jobless person. These subsidies need to provide seamless transition from work experience into an apprenticeship without one acting as a disincentive to the other.

21. Clear guidance on what is expected through work experience and guidance on the transition to employment and apprenticeships (where appropriate) is essential for both parties.

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

22. We can see the justification for funding rates being slightly lower for older apprentices. They’re generally easier to train, more enthusiastic and get through the programme more quickly. However, we cannot see the justification for there being such a large disparity in the funding rates.

23. Many 16-year-olds now stay at school to do A levels before they decide to apply for apprenticeships. This means that the average age of applicants has increased and very often those who apply to our employers have already turned 19.

24. The 50% reduction in funding for 19+ apprentices is a disincentive to employers who are considering taking on an apprentice of that age, especially for the first time. We believe that subsidising small and micro businesses (e.g. up to 20 employees) who take on their first apprentice at 19+ would increase the uptake of apprenticeships within this business category. It is more likely to result in a positive first apprentice experience, due to their more mature approach.

2 February 2012