Apprenticeships

APP 132

Written evidence submitted by Sheffield City Council

Executive Summary

· Since the introduction of the National Apprenticeship Service there has been an increased volume of apprenticeship starts. However there is evidence that the programme has not penetrated the SME market to the level required to unlock the potential volumes this market could generate.

· With limited careers guidance, no clear pathways and limited promotion of apprenticeships in schools the National Apprenticeship Service has more to do if it is to bridge the gap between BIS and the Department for Education.

· The additional funding promised by the Coalition Government is necessary to generate a continued growth in apprenticeships. Currently funding is targeted on those that successfully secure an apprenticeship opportunity. It does not support those that could excel if they were better prepared prior to applying for an apprenticeship. For many particularly those that sit outside of the Work Programme, funding targeted on a period of ‘pre apprenticeship’ would equip them with the employability skills required to successfully move forward to take up an apprenticeship

· Feedback from local businesses engaged in the apprenticeship programme clearly indicates the current apprenticeship model does not have the flexibility that many sectors require. Businesses have articulated their desire to be engaged in meaningful dialogue that allows them to shape and develop a system that is flexible, responsive and delivers relevant qualifications at the appropriate level. In particular the engineering sector would like to see a flexible model to meet their needs. The introduction of more level 3 apprenticeships would respond to employer demand.

· Evidence from other national, local and ESF funded programmes e.g. Future Jobs Fund, Sheffield 100 Apprenticeship Programme and Objective 1 clearly demonstrate that subsidies and cash incentives encourage employers to recruit less qualified individuals and invest in developing their skill levels. However, the proposed bonuses if available for all candidates encourage selection of those more able individuals pushing those that could excel given the opportunity further from the labour market.

· The current funding model used for the training of apprentices does not address long term worklessness and the need to support employed or unemployed adults that would benefit. The current funding model acts as a disincentive to employers in employing/investing in the skills of the 19 plus workforce.

How successful has the National Apprenticeship Service been since it was created in April 2009?

1. Since the introduction of the National Apprenticeship Service there has been an increased volume of apprenticeship starts. However there is evidence that the programme has not penetrated the SME market to the level required to unlock the potential volumes this market could generate.

2. Opportunity Sheffield a Sheffield City Council run initiative designed to provide businesses with support to access the services that can secure business benefits, undertook an exercise to raise the profile of apprenticeships across the SME community. To date this has generated an additional 423 apprenticeships.

3. This initiative demonstrates the potential volumes engaging and supporting the SME market to understand the apprenticeship process, its benefits, and provide the support to source candidates, training frameworks and Training Providers who can deliver the framework, can generate.

Has it helped bridge the gap between the two funding Departments? (BIS and Department for Education).

4. With limited careers guidance, no clear pathway, and limited promotion of apprenticeships in schools the National Apprenticeship Service has more to do if it is to bridge the gap between BIS and the Department for Education.

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

5. The additional funding promised by the Coalition Government is necessary to generate a continued growth in apprenticeships. An evidence base can be drawn from the response to the City Councils Sheffield 100 Apprenticeship Programme. The Sheffield 100 Apprenticeship Programme is different in that it aims to prepare young people aged between 16 and 18 years old who may not have been successful in the past at gaining an apprenticeship, or are most likely to fall out of education, employment or training (Neet) and can be overlooked when in open competition and therefore required extra support that the Sheffield 100 programme provides. .

6. Candidates undertake a 6 week pre apprenticeship and a period of work placement with their prospective employer. To date the programme has supported 66 young people into employment. In return for the businesses investment in those young people from this cohort the programme pays half of the apprentices salary to the employing business.

7. Feedback from those businesses involved in the programme is that without the payment of half the salary costs and the preparation of candidates through the pre apprenticeship programme they would not have engaged with this client group.

8. This highlights the need for a two pronged funding stream that covers both preparation of the candidate for those that sit outside of the Work Programme and financial incentives payable to businesses.

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

9. Feedback from local businesses engaged in the apprenticeship programme clearly indicates the current apprenticeship model does not have the flexibility that many sectors require. Business es have articulated their desire to be engaged in meaningful dialogue that a llows them to shape and develop a system th at is flexible, responsive and delivers the range of qualifications they require. In particular the engineering sector would like to see a flexible model to meet their needs. The introduction of more level 3 apprenticeships would respond to the employer voice.

Apprenticeships 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?

Evidence from other national, local and ESF funded programmes e.g. Future Jobs Fund, Sheffield 100 Programme, and Objective 1 clearly demonstrates that subsidies or cash incentives encourage employers to recruit less qualified individuals and invest in developing their skill levels.

However, the proposed bonuses if available for all candidates will encourage selection of those more able individuals pushing those that could excel given the opportunity and support further from the labour market.

In addition, these incentives are not attached to those 18 to 24 year olds registered as unemployed prior to joining the Work Programme, or those currently in work who may not be qualified to Level 2 or above.

Is the current funding arrangements for training of apprentices of 10% for 16-18 year olds and 50% for 19-24 year olds appropriate?

The current funding model used for the training of apprentices does not address worklessness in the round and the need to support all employed or unemployed adults that would benefit(according to the Leitch review of skills 70% of the 2020 working age population has already left compulsory education). The current funding model acts as a financial disincentive to employers in employing/investing in the skills of the 19 plus workforce.

Whilst from the 1 April 2012 monies will be attached to unemployed 18 to 24 year old referred to the Work Programme, the additional training costs SME’s will incur will prove prohibitive for a large number in the current challenging ecomomic climate.

Cllr. Helen Mirfin-Boukouris

22 February2012

ANNEX

Sheffield City Council 100 Apprenticeship Scheme

What is the Sheffield 100 Apprenticeship scheme?

In May 2011, Sheffield City Council’s new Labour administration made a commitment to take action to support employment opportunities for young people, earmarking £500,000 for an apprenticeship programme. The programme will target those young people, 16-18, who are registered as being unemployed or not in education or training and work with Small/Medium Enterprises in Sheffield to offer subsidised Apprenticeships in local businesses.

Why are we supporting Apprenticeships?

Sheffield City Council is committed to helping Young People into employment and to increase the diversity of the city’s workforce. Young people have been disproportionately affected by the recession and the city requires a dynamic, skilled workforce.

What is an apprenticeship?

They are work-based training programmes designed around the needs of employers, which lead to nationally recognised qualifications.

As employees, apprentices earn a wage and work alongside experienced staff to gain job-specific skills.

A National Minimum Wage for apprentices was introduced on 1 October 2010. From 1 October 2011 this will be £2.60 per hour for apprentices aged under 19 and applies to time working, and time spent training that is part of the Apprenticeship. Employers are free to pay above the new wage and many do so, but employers must ensure that they are paying their apprentices at least the minimum wage.

What is the value of employing an apprentice?

Apprentices can make a significant contribution. The University of Warwick Institute of Employment Research found that the costs of apprenticeship training are recouped relatively quickly and that where the investment is nurtured, the returns are significant. In a 2009 Learning and Skills Council survey of UK businesses:

· 81 per cent said that employing apprentices generated higher overall productivity for their company.

· 92 per cent said that their apprenticeship programme better motivated staff and increased job satisfaction.

· 74 per cent said that apprentices tended to be more loyal, remaining at their company longer than non-apprentices.

What is different about the Sheffield 100 Apprenticeship Programme?

The new Sheffield 100 Apprenticeship Programme is different in that it aims to encourage young people aged between 16 and 18 years old who may not have been successful in the past at gaining an apprenticeship, or are most likely to fall out of education, employment or training and in need of support.

It is hoped that these apprenticeships will lead to permanent employment.

How will we support businesses to become involved?

The businesses that support Sheffield’s young people through this programme will receive a contribution to cover half of the apprentice’s salary up to the value of £52.00 per week.

This contribution will be available for a maximum of 2 years or until the apprentice achieves their qualification. The length of an apprenticeship differs widely but on average is of 18 months duration.

What will happen next?

Businesses signalling their readiness to move forward and employ a Sheffield 100 apprentice will be provided with support throughout the 3 stages of the programme.

The 3 Stages:

Stage One - Interview

· You will interview between 1 and 3 candidates for your position. The successful candidate will undertake a period of work experience with you.

· Prior to the interview candidates will undertake a 6 week pre apprenticeship programme to ensure they are hard working, reliable and ready to embark on their chosen career path.

Stage Two – Work Experience

· The work experience period completes the selection process and ensures both the business and the candidate are ready to move forward to stage 3.

· Work experience will be flexible to the employer’s requirements but is envisaged to be 2-3 days per week for 2-3 weeks.

· During the work experience period the young person will receive travel and lunch costs from the Sheffield 100 apprenticeship programme.

· In preparation for stage 3 the National Apprenticeship Service will provide the employer with a choice of training provider. The training provider is usually a local college or specialist training organisation responsible for an apprentice’s off-the-job training.

Stage Three - Employing the apprentice

· Upon satisfactory completion of work experience, the apprenticeship will commence.

· The employer will sign an employer agreement with Sheffield City Council. This will detail the terms and conditions for receipt of the contribution to the apprentice’s salary and; the support they will receive throughout the length of the apprenticeship. This support will be provided by a named contact.

· The employer’s preferred training provider will assign a mentor to work with the employer to ensure that the apprentices training programme is well planned, progress is tracked and support around any issues that may arise is available.

· The employer will invoice the Council at the end of every calendar month for half the apprenticeship salary up to the value of £52.00 per week.

Results to date

175 employers engaged

66 Apprentices in employment through the programme across the following sectors:

Care, Creative & Digital, Construction, Environmental, Finance, Hospitality, Manufacturing, Marketing, Public, Recruitment, Retail, Training and Voluntary and Community.

With a further 5 at the interview stage and 12 at the Work Experience stage total 83 of which:

33 Female

50 Male

19 BME

10 with Learning/Physical disability

Quotes from Employers

"Super chap, with good focus, he's done so well I've agreed to pay him for his work trial too" Fulwood Lodge Care Home

 

"A really nice young man, very happy to take him on" - Jane Snee, Business data prospects

"She was quietly confident, had prepared for the interview and made the effort to find out a little bit about us from our website. She was honest, polite and demonstrated a sense of humour. Without proper tests there was little more she could have done to impress us at the interview." Andy Pringle, Pringle PCS Limited

"Danny seems to be getting on fine. I’ve spoken to the warehouse manager, and he’s very pleased with his enthusiasm so far." Alistair Hague, Alchemistic

"Lucy’s doing very well, she’s a diamond" Shaun Johnson, Ashton Building Services

"We've had him learning a lot about the way small businesses work and he seems very enthusiastic" - Jason Jesson, Owner of Laundry Point

 

"Bradley was great on his work trial, we had him doing all kinds of stuff to learn about the business, we'll take him straight onto apprenticeship starting next week" Alchemistic Limited.

"Following his work trial, we’re taking Toby on because he seemed to get on well with everyone and we think he’ll really fit it" Sheffield Wildlife Trust

Quotes from employers