1 Introduction
A brief history of apprenticeships
1. The history of apprenticeships
in England goes back to the Middle Ages. One of the first documents
attempting to set out the terms and conditions for training was
the Elizabethan Statute of Artificers in 1563.[1]
From this early formalisation of the master-apprentice relationship,
the apprenticeship grew over the centuries. By the late nineteenth
century, the scope of apprenticeships had spread from what was
(at the time) more traditional trades such as construction, paper-making
and printing to encompass emerging sectors such as engineering
and shipbuilding. Apprenticeships today continue to reflect the
emerging sectors in the economy such as retail, business and information
technology. The most popular apprenticeship subject in 2010-11
was 'customer service'.[2]
2. Governments have always had an
interest in apprenticeships. However, as the National Apprenticeship
Service (NAS) website explains, recent state involvement in apprenticeships
has been variable:
The level of state intervention
in this country has varied over recent decades, from levy-funded
programmes via the industrial training boards in the 1960s and
1970s, to no support or intervention at all in the early 1990s.[3]
3. In 1994, the Government responded
to concerns about skills shortages in the UK by announcing plans
for a new apprenticeship scheme. Several elements of the 'Modern
Apprenticeship' have since been reformed, but a focus on occupational
competence has been a central theme. NAS states that changes and
increased investment made by the Government since 1997 have led
to "a major improvement in the number of Apprentices and
in the quality of Apprenticeships".[4]
In 2010-11, the total number of apprenticeship 'starts' was 457,200.[5]
The programme cost for the same period was approximately £1.2bn.[6]
Apprenticeships today
4. The National Audit Office (NAO)
recently published a report on adult apprenticeships, in which
it described the apprenticeship framework as follows:
Under the Programme, an apprentice
performs paid full-time work while receiving training towards
a framework of vocational qualifications. [7]
An apprenticeship framework is a
package of training involving several components (all of which
must be passed by the apprentice):
- a competency element, leading to
a National Vocational Qualification (NVQ) or similar qualification,
which assesses how well the apprentice performs a particular occupation;
a knowledge element, leading to
a qualification such as a diploma, which covers the theoretical
knowledge required by an individual in a particular sector; and
training in 'key' or 'functional
skills', leading to qualifications in maths and English.[8]
5. Responsibility for public funding
of apprenticeships is now shared between the Department for Business,
Innovation and Skills (BIS), which funds adult apprenticeships,
and the Department for Education (DfE), which funds 16-18 year
olds. Working together, the two departments determine the overall
strategy and the policy context, funding levels and volumes for
the apprenticeship programme. This is co-ordinated through the
single joint 'Apprenticeships Unit' which spans both departments.
All significant decisions affecting the programme as a whole are
shared, while the Minister of State for Further Education, Skills
and Lifelong Learning also works across both departments.
6. The apprenticeship programme
is delivered by NAS, which was established in January 2008 (and
officially launched in April 2009). The Service was created to
bring about "significant growth in the number of employers
offering Apprenticeships and support, fund and co-ordinate the
delivery of Apprenticeships throughout England".[9]
NAS is responsible for the national delivery of targets and co-ordination
of the funding for apprenticeship places. NAS is a discrete part
of the Skills Funding Agency (SFA), which manages contracts and
provides finance and administration services. The NAO summarised
the structure and roles of the key bodies involved in the apprenticeship
programme as follows:
Figure 1: Key organisations involved
in the Apprenticeship Programme[10]
Our inquiry
7. We announced an inquiry into
apprenticeships in December 2011. Among the questions we posed
at that stage were:
- 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)?
- Is the extra funding promised by
the Coalition Government necessary for apprenticeships? How can
this funding best be spent?
- Are apprenticeships of a high enough
quality to benefit apprentices and their employers? Should there
be more Level 3 apprenticeships?
- 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?
- Is the current funding arrangement
for training of apprentices of 100 per cent for 16-18 year olds
and 50 per cent for 19-24 year olds appropriate?[11]
We are grateful to all witnesses for
their contributions to this inquiry and to all those who submitted
written evidence. We are also grateful to staff at the Apprenticeship
Unit and the National Audit Office for their assistance.
1 For more information on the history of Apprenticeships,
see: http://apprenticeships.org.uk/About-Us/History-of-Apprenticeships.aspx
[accessed 18 April 2012] Back
2
National Audit Office, Adult Apprenticeships, 1 February
2012, page 4 Back
3
National Apprenticeship Service website, History of Apprenticeships
[accessed 18 April 2012] Back
4
National Apprenticeship Service website, History of Apprenticeships
[accessed 18 April 2012] Back
5
Quarterly Statistical First Release, Post-16 Education & Skills:
Learner Participation, Outcomes and Level of Highest Qualification
Held, 11 October 2012 Back
6
National Audit Office, Adult Apprenticeships, 1 February
2012, page 14, figure 2 Back
7
National Audit Office, Adult Apprenticeships, 1 February
2012, para s 1.1 & 1.3 (extracts) Back
8
National Audit Office, Adult Apprenticeships, 1 February
2012, paras 1.1 & 1.3 (extracts) Back
9
National Apprenticeship Service website, National Apprenticeship
Service: Apprenticeships [accessed 18 April 2012] Back
10
National Audit Office, Adult Apprenticeships, 1 February
2012, page 12 Back
11
Business, Innovation and Skills Committee website, Business,
Innovation and Skills Committee announces new inquiry into Apprenticeships
[accessed 25 July 2012] Back
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