Apprenticeships

APP 85

Written evidence submitted by the Institute of the Motor Industry

Executive Summary

1. The Institute of the Motor Industry (IMI) believes that there is a role for the National Apprenticeship Service (NAS), in particular in the marketing of Apprenticeships, where they can play a valuable role in raising awareness in schools, explaining to young people, their teachers, parents and careers advisers and practitioners alike, that Apprenticeships offer a high quality vocational training programme that offers young people an alternative to the traditional academic route after the age of 16. It is important when talking about Apprenticeships to reach a common definition on what it represents as well as clear understanding of its intent and purpose. There are competing expectations across DfE and BIS with regards to what an Apprenticeship should achieve – for DfE, a learning programme that will raise the participation age to 18 and, for BIS, a programme to develop the skills, knowledge and occupational competence needed for work. Both of these ambitions are valid and we believe it is possible to develop frameworks that meet both. Frameworks can prepare individuals for employment and at the same time provide opportunities for progression into higher education. In the first instance, the IMI believes that Apprenticeships must be focused on the needs of the workplace, new employees, employers and the economy. They must be developed and owned by employers. Funding should go to employers in supporting the delivery of Apprenticeships, where it is used to fund additional apprenticeship places and is used as a preferred method to develop new employees.

Introduction

2. The Institute of the Motor Industry (IMI) is the Professional Body and Sector Skills Council for the individuals and businesses operating in the automotive retail sector. The workforce currently stands at around 506,000 with over 81,000 businesses. 85% of those businesses are micro-businesses, employing 38% of the workforce. A further 14% of businesses are small to medium enterprises employing 57% of the workforce. Less than 1% of businesses are large businesses employing the remainder of the workforce.

3. IMI welcomes the opportunity to respond to the Business, Innovation and Skills Select Committee’s inquiry into Apprenticeships. IMI itself is responsible for developing and issuing frameworks for the automotive retail sector and, as such, has first-hand experience of the National Apprenticeship Service (NAS) with regard to development of apprenticeships; however we have no direct experience of working on a contracted basis with NAS. This response outlines their importance to the sector and is based on input from a range of companies within the automotive retail footprint.

Apprenticeships – Response to Questions and Recommendations

4. The automotive retail industry in the UK depends heavily on having access to a large, highly-skilled, and flexible talent pool, due to its complexity and new technologies. Ensuring the mechanisms are in place to meet the ever-changing skills requirements that these new technologies and activities demand is of vital importance to exploit the UK automotive industry’s opportunities for growth. Apprenticeships have proven to be an invaluable tool for industry to address these issues and recruit and train its own workforce, ensuring that there is a consistent supply of skilled, ready to work individuals for a variety of needs, within the automotive retail sector .

5. The automotive industry is one of the largest providers of apprenticeships in the UK, with 11,860 apprentices starting their Apprenticeships in the automotive retail sector alone in year 2010-11, of which over 4,500 were Advanced apprenticeships [1] . The automotive industry also provides extensive apprenticeship opportunities in engineering, highlighting the breadth of impact a concerted government focus on apprenticeships can have to this vital sector for the economy. Industry’s commitment to the apprenticeship scheme is further illustrated in the NAS list of Top 100 Apprenticeship Employers, where a number of automotive companies are featured, from high-volume manufacturers and luxury brands, to companies in the supply chain and retail.

6. Specifically on NAS, industry has had mixed experiences. There is wide agreement on their lack of visibility as a body, and those with direct experience of NAS have received inconsistent quality of communication and advice. However, those who have utilised the Apprenticeship vacancies recruitment system were mostly very positive on the service.

7. IMI and industry welcome recent government announcements committing additional funding to NAS. Government’s stated ambition to rebalance the economy towards the manufacturing sector requires significant long-term investment, and we believe that developing and expanding apprenticeships in the UK is vital in achieving this aim. The recent investment announcements also reaffirm to industry that government is committed to growth of the UKs manufacturing industries , which in turn impact retail and supply-side . Targeting this extra funding is essential to ensure it is effective for business, learners and the wider economy. There are a range of perspectives on where this funding could be best spent; however, supporting the learning and improving of functional skills to ensure all those involved in apprenticeships can best benefit from them, is universally agreed upon.

8. Businesses stress that increased or different approaches to funding should not lead to increased bureaucracy. The automotive retail sector is a global industry; companies operate in many countries, and many locations within those countries. Businesses in the retail and service side of the industry have particularly noted differing experience in ease of funding access in different areas of the UK, which leads to inconsistency and can be confusing and complicated.

9. Apprenticeship bonuses are viewed positively by business, but as with funding approaches, consistency and continuity is essential. More communication is needed on how such bonuses could operate and best benefit learners and businesses.

Apprenticeships – Quality , funding, accessibility and perceptions

10. Industry is keen to address the image of A pprenticeships, which at present are perceived as a less robust alternative to academic study in further education. Industry believes that long-term and whole-hearted government commitment to apprenticeships can go a long way in addressing this issue, which, at present, acts as a brake on the appeal, and consequently the expansion and development of the scheme. In addition focusing apprenticeship funding on the most stringent and productive frameworks will assist in raising the profile and prestige of apprenticeships. This focus on the long-term, through prioritising A pprenticeships which produce the most skilled workers, will result in a virtuous circle of better qualified individuals entering the workforce throughout the economy, helping raise the profile of the scheme, thus encouraging individuals from a wider diversity of backgrounds to study for an apprenticeship. The inquiry specifically seeks views on Level 3 apprenticeships and the quality of them. Industry is very positive on the quality of Apprenticeship frameworks, and Level 3 as a minimum ambition is widespread, particularly in service and retail.

11. Ensuring that careers ad visors are well-informed about A pprenticeships is crucial in reaching out to prospective employees for the automotive sector. Apprenticeships are, and need to be seen as, a real route to professional progression and success in the industry. The automotive sector is committed to improving the image of industry through the ‘ Headlight ’ , ‘Autocity’ and other careers and IAG initiative promoted and supported by the IMI where automotive employers can link with students and careers advisors to showcase the breadth of career opportunities available in the retail sector .

12. The accessibility of funding for A pprenticeships is a key concern for industry, and in particular SMEs who have restricted parameters of what they can afford and what they require for their business. Ensuring that funding for A pprenticeships is available across the board, from 16-24 year olds to adult learning, and inte rmediate level A pprenticeships to higher, is crucial in guaranteeing that additiona l government investment in the A pprenticeship scheme reaches all areas of the economy. Companies often see age-linked funding as a barrier to training and upskilling, and therefore maximum flexibility is essential. In addition, well-known global brands often have very different experiences of attracting apprentices and engaging with schemes and funding than companies in the supply-chain. Industry calls on government to be proactive in seeking to address this issue, and flexibly support collaboration across the supply-chain.

13. To ensure that additional government investment in apprenticeships is fully utilised, it is vital to improve the communication and dissemination of funding options open to business. Action and sustained effort is needed to encourage more employers to take on apprentices. Again this is particularly crucial for SMEs who may not have the resources to investigate such opportunities, but who conversely will derive the most benefit from any government funding. IMI would recommend that NAS work with SSCs to develop strategies to encourage more employers to offer Apprenticeship places.

14. Higher Level Apprenticeships are also welcome by the industry and the IMI has received extremely positive feedback throughout the development phase of the Higher Level Apprenticeship framework it is currently developing. Accessibility and funding of this framework is key to its success and industry are keen to work with Government to ensure appropriate levels of funding are secured from April 2012 onwards.

3 February 2012