Apprenticeships

APP 50

Written evidence submitted by NCG

1. Executive Summary

1.1 NCG believes that the National Apprenticeship Service has successfully contributed to raised awareness and participation in Apprenticeships, however there is still some way to go to ensure that Apprenticeship funding and delivery is appropriately targeted and supports the needs of learners and employers.

1.2 Improved alignment to regional and local requirements would have a more positive impact, and would increase the engagement of young people and the success of Apprenticeship routes.

1.3 Funding could be better targeted to support this development, increasing the flexibility to:

§ Utilise funding to incentivise employers to take up apprentices;

§ Encourage Apprenticeship take-up across a broader cohort; and

§ To develop and increase progression on to higher level Apprenticeships.

The points below are set out against the terms of reference specified in the Apprenticeship Inquiry.

2. Introduction

2.1 NCG aims to develop people through learning and achievement for the benefit of themselves, society and the economy. Our focus is on meeting national and regional education, skills and employment goals for individuals and employers in line with Government priorities.

2.2 Our national expertise, knowledge and reach provide a detailed understanding of the social and economic requirements across the country. We are one of the largest providers in the UK and are currently delivering privately funded and government funded contracts to over 7,000 businesses and 70,000 individuals across the UK.

2.3 We are a Prime contractor for the Work Programme in Birmingham, Solihull and the Black Country and in North East Yorkshire and Humberside and a sub-contractor in East Midlands and the East of England.

2.4 We have the third largest SFA contract in the UK after the MoD and Learndirect, and are the largest provider of learning and skills in the country outside of government. We are the third largest provider of adult apprenticeships in the UK and have been graded outstanding by Ofsted, holding Beacon Status. Our two FE Colleges have been awarded Foundation Degree Awarding Powers, which means we can now develop and validate our own Foundation Degrees.

3. Information

3.1 NCG believes that the National Apprenticeship Service has been largely successful in promoting Apprenticeships and supporting large employers to access and understand Apprenticeships. The branding of a service that is customer facing with a clear responsibility and accountability for Apprenticeships has created a focus and ownership for individuals, stakeholders and delivery partners. The vacancy service is a particularly successful aspect.

3.2 However, it is felt that there is a lack of clarity in its mission and this, coupled with a lack of knowledge and understanding of the relationship between the Department for Business Innovation and Skills, and the Department for Education has meant that little has been done to bridge the gap between the two departments. There is poor market penetration and school engagement, with young people remaining unaware of choices and Apprenticeship routes failing to have an impact. There is also limited impact on regional and local requirements.

3.3 In the current economic climate, NCG recognises that there is a need to ensure our workforce is qualified to the highest level; therefore the apprenticeship funding that is available is required. However, it is felt that the extra funding for Access to Apprenticeships places is proving difficult to deploy. The stipulations regarding the minimum hours for work experience are considered too onerous, and they fail to recognise that learners who are currently NEET find that moving immediately onto 30 hours of unpaid work experience is a significant barrier to participation.

3.4 We consider that it would be more appropriate to adapt the programme to recognise that young people may require a staged introduction to work experience during the programme, with greater support for the 19-24 NEET cohort. It is also felt that funding should not be with employers, as larger corporations may use it to deliver continuing professional development at a reduced rate, using public monies. The funding may be more appropriately linked to the New Deal for City’s and Apprenticeship Hub acting as an honest broker.

3.5 NCG recognises the impact higher level skills has on both an individuals’ life chances, earning and employment prospects, as well as employers productivity. NCG would strongly advocate and support the creation of more apprenticeships at Level 3 and Level 4, however this should not be considered at the expense or exclusion of providing work based learning at Level 2. In order to meet the needs of employers and apprentices, it may be appropriate for programmes at Level 2 or below to be promoted as ‘traineeships’, with greater flexibility on hours and durations to meet learner needs. A shift to a minimum 12 month duration will not necessarily equate to improved quality on some programmes and may have a negative impact on securing long term sustainable jobs in a recession. It may also result in the "padding out" of qualifications in order to extend the programme to 12 months. A flexible approach would be of benefit to ensure that programmes meet the needs of learners but that are also matched to available work experience or employment.

3.6 We consider that Apprenticeship bonuses should be paid upon completion of the Apprenticeship. This would encourage employers to provide ongoing support throughout the apprenticeship to completion, rather than for a fixed period of time. NCG believe that employers should be incentivised to recruit 16-24 year olds through tax breaks rather than one-off payments. It may also be appropriate to offer employers a bonus for progressing existing apprentices on to higher level apprenticeships.

3.7 NCG considers that in the current economic climate, businesses are discouraged from taking on 19-24 year olds due to the expected fee level. As a result, providers feel under intense pressure to reduce fees or offer training free of charge for this cohort, which can be a strong disincentive. It may be more appropriate to recognise that there is a severe youth unemployment issue across the country, and to fully fund apprenticeships for those aged 19-24 years. The 25% reduction for larger employers could continue to apply. Alternatively, a shift to 100% funding for 16-24 year olds may be appropriate in order to target "lost generation" NEETs. NCG is committed to the Youth Contract, however we consider that the subsidies and support should be widened to include a broader range of employers to stimulate growth in the youth employment market.

4. Recommendations for Action

4.1 NCG suggests that absolute clarity is required on National Apprenticeship Service targets and areas of influence, and an appropriate staff structure should be developed to support this. Bridging the gap between Department for Business Innovation and Skills and the Department for Education requires a clearer understanding of the relationship between the two.

4.2 NCG believes that the extra Apprenticeship funding needs to be targeted appropriately. Funding should not be with employers; it may be more appropriately linked to the New Deal for City’s and Apprenticeship Hub acting as an honest broker. It may also be appropriate to support the costs to employers’ with an apprentice, for example through NI contributions, holidays or salary costs.

4.3 NCG strongly advocates and supports the creation of more Apprenticeships at Level 3 and Level 4, however this should not be considered at the expense or exclusion of providing work based learning at Level 2. There needs to be an understanding that the provision of work based learning means that the job role needs to support the Apprenticeship framework delivery. There are processes in place to ensure and assure high quality frameworks, and there are checks and balances on quality. The Sector Skills Council should review with employers’ success against their frameworks. A flexible approach would be of benefit to ensure that programmes meet the needs of learners but that are also matched to available work experience or employment.

4.4 NCG suggests that Apprenticeship bonuses should be paid upon completion of the Apprenticeship. Employers should be incentivised to recruit 16-24 year olds through tax breaks and it may also be appropriate to offer employers a bonus for progressing existing apprentices on to higher level apprenticeships.

4.5 NCG suggests a shift to fully funded apprenticeships for those aged 19-24 years. The 25% reduction for larger employers could continue to apply. Alternatively, a shift to 100% funding for 16-24 year olds may be appropriate in order to target "lost generation" NEETs.

4.6 NCG is fully signed up and committed to the Youth Contract, however we feel that the subsidies and support should be widened to include a broader range of employers to stimulate growth in the youth employment market.

3 February 2012