Summary
The Department for Education (the Department) has failed to make the progress that it predicted when it reformed the apprenticeships programme in spring 2017. The number of apprenticeship starts fell by 26% after the apprenticeship levy was introduced and, although the level is now recovering, the government will not meet its target of 3 million starts by March 2020. The Department’s focus on higher-level apprenticeships and levy-paying employers increases the risk that minority groups, disadvantaged areas and smaller employers may miss out on the benefits that apprenticeships can bring. We welcome the programme’s greater focus on quality and, after a slow beginning, more than half of apprenticeships are now started on employer-designed standards rather than the old-style frameworks. However, some employers are using apprenticeship funds to pay for professional training or management courses that they would otherwise have paid for themselves. We remain to be convinced that this is the best use of the available funding in terms of adding genuine value to the economy.
Because of the drop in apprenticeship starts, the Department underspent the programme’s budget by 20% in 2017–18. However, employers’ preference for higher-cost apprenticeships means that the programme is expected to come under growing financial pressure in the coming years. Unless funding is increased, the Department will face difficult decisions about which aspects of the programme to prioritise. It is crucial that these decisions are based on sound evidence, and that they pay due regard to the added value that different types of apprenticeship bring.
Published: 22 May 2019