Apprenticeship troubles continue

It’s nine months since the introduction of an employer’s levy – designed to raise an additional £3 million for the apprenticeships programme and help government reach its total of 3 million more apprenticeship starts by 2020.

But the apprenticeship levy only applies to large employers with a wage bill of more than £3 million (approximately 2% of all employers) who are required to pay 0.5% of this. This money will be paid into an account and can only be spent on approved apprenticeship training – with the government adding 10%.

Research from the influential CIPD shows that while these employers are more likely to offer apprenticeships than their smaller counterparts, almost 1 in 4 still plan to ‘write off’ this expenditure as a tax. According to CIPD levy payers are also likely to spend some the funds the on ‘rebadging’ existing employees as apprentices – a major problem with the old system of apprenticeship finance.

The CIPD report also shows that rather than being required to spend funds on apprenticeships, many levy paying employers would rather pay a more general ‘training levy’ –  training levies exist in other European countries and still exist in some UK economic sectors like building and construction.

Non-levy paying employers must pay at least 10% of the cost of apprenticeships and organise their own training (though all employers receive extra funds for employing a 16-18-year-old) and it’s the lack of take up by smaller employers that may well mean the government’s 3 million target isn’t met. For this to happen, the number of starts will have to significantly increase – but figures for 2016/17 show a fall on previous years and worryingly the period May to June 2017 saw a 60% reduction (this period coincided with the introduction of the levy!)

Most apprenticeships, despite new standards designed to improve quality (20% of training must now be ‘off the job’) are also still more likely to be offered at Level 2 (GCSE) without clear routes of progression and there are very few at Higher Level. Just a quarter of all starts are by under 19-year olds.

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Patrick Ainley – discussion paper on Michael Gove

Michael+Gove+I1JuslSh34JmRevisiting Michael Gove et al’s 2005 pamphlet, DIRECT DEMOCRACY, An Agenda for a New Model Party, this article finds in it the blueprint for power Gove made in campaigning to leave the EU that indicates an unfinished Agenda for English primary and secondary education under ‘hard Brexit’ complementing measures proposed for tertiary education in the Higher Education and Research Bill

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The Tories have increased social mobility!

Patrick Ainley   Guardian Letter

7538Contrary to the assertions of Alan Milburn (Observer 2 December*), the Tories have dramatically increased social mobility. However, it is general, absolute, DOWNWARD social mobility that has increased, whilst the limited, relative, upward social mobility of the post-war, welfare state period is nowadays so statistically insignificant as to be exceptional. 

As the traditional post-war class pyramid has gone pear-shaped, a select few children of the (mainly skilled) manual working class can no longer move into non-manual administrative and professional careers. Instead, those in a new middle/working class are running up a down-escalator of devalued qualifications, desperate not to fall into the reconstituted reserve army of labour in low-paid, insecure, unskilled and increasingly precarious jobs – perhaps 40% of all employees by some estimates. Meanwhile, formerly secure professions are automated and deskilled. Contracted out and working to targets as demand dictates, they are reduced to the level of increasingly fungible wage labour.

 The result is a dramatic increase in both the rate and volume of that catch-all term ‘social mobility’!

*https://www.theguardian.com/politics/2017/dec/02/theresa-may-crisis-mass-walkout-social-policy-alan-milburn

 

Wanted: a POST INDUSTRIAL strategy

After last week’s budget, we now get  the government’s Theresa+May+Chancellor+Leaves+Downing+Street+iPElQT64J6Wlequally uninspiring ‘industrial strategy’. Based on proposals published in January of this year, the 250 page Building a Britain fit for the future  claims to provide ‘a new approach to how government and business can work together’.

Nothing could be further from the truth. It’s more about the continued endorsement of free market economics and the success of ‘flexible’ labour – the reason why industrial strategies were no longer considered necessary.  This is combined with a few proposals to bump up investment in ‘cutting edge’ industries which already do relatively well, in areas  already prosperous –  for example, the Oxford/Cambridge/Milton Keynes triangle.

While paying lip service to the importance of a few Northern ‘core cities’, the White Paper ignores  most of the areas  that are in terminal decline, because of historical neglect and lack of investment. It offers little to the millions of people in insecure and poorly paid employment at the lower end of the service sector.

In promising a ‘world class’ technical education, the White Paper is reaffirming existing commitments to introducing Tech-level qualifications as alternatives to A-levels – but these are as unlikely to be anymore successful than previous similar initiatives because they are not linked to an employment plan for young people.

May’s proposals are far removed from the approach of the economies they hopes to emulate – Germany and some of the Pacific Rim countries which have pursued much higher levels of state intervention and spent far greater sums of money (and in the case of Germany, enjoy much greater degrees of collaboration between state, employers and trade unions).

Labour’s alternative proposals for a National Investment Bank, increased borrowing for investment in manufacturing and nationalising parts of the infrastructure are much better, yet rather than pretending that after years of decline, industry can be restored; and then trying to copy the uncopiable,  surely time could be better spent developing  a POST-INDUSTRIAL strategy with at least some of the following objectives?

1)A much larger role for the state in running the economy – combined with decentralised regional strategies, accountable to local people. A planned introduction of automation.

2)Ditching fiscal orthodoxy – introducing the ‘People’s Quantitative Easing’, originally promoted by Labour, where new money is directed to socially useful projects rather than into the banking system.

3)Massive public expenditure on housing, social care and energy conservation.

4)Education for self-development and social responsibility, rather than just ‘skills’.

5)Ending dependency on low-paid service sector employment. Bringing in a Universal Basic Income in addition to existing benefits, not instead of them.

No budget for the young

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With young voters flocking to Jeremy Corbyn’s Labour in the last General Election  https://education-economy-society.com/2017/06/20/young-voters-flock-to-labour/ you’d think the Tories would have wanted to use this week’s budget as an opportunity to win back some lost ground. 

But, as one disaster follows another, May and Hammond are just as desperate to shore up their existing support and so, unless you are London based, in a ‘career’ job and with parents able to stump up a large slice of a deposit (by itself, the change to stamp duty does nothing to improve a person’s ability to save) for a bargain £300 000 first-time buy,  there’s nothing that can  remotely help you refill the fridge, never mind pay off the overdraft.

The £350 increase in the level we now start paying income tax – worth about £70 a year, will certainly exempt a fair few from tax altogether, yet if full-time students in part-time jobs are excluded, only half of 18-24-year olds are in the labour market.

By comparison, there’s been a £1350 increase in the 40% income tax ceiling (it’s now £46,350). There’s no further moves on student tuition fees (May has previously announced an increase in the repayment threshold and Parliament voted down new fee increases) and no direct reference to the need to rescue apprenticeships.   https://radicaledbks.files.wordpress.com/2013/09/a-great-training-robbery1.pdf

While recent developments have shown that increasing spending on education and training won’t necessarily lead to better employment outcomes; some schools will welcome the increased financial incentives for increasing the number of students taking Maths beyond GCSE. But even here, the amount is modest (£600 a student) and many employer representatives now argue that it would be better to have a broader post-16 curriculum rather than the current specialist one.

Young people have been affected the most from the fall in living standards since the economic downturn http://www.if.org.uk/2013/06/21/new-evidence-shows-young-adults-have-suffered-most-from-the-recession/ and approaching a third are estimated to be living in poverty. Labour will want to put their interests at the top of its agenda.

Sanity arrives? Owen Jones in today’s Guardian.

At last!   Sanity emerges on the British Left !!

‘Now that socialism is re-emerging as a political force that can no longer be ignored or ridiculed, the struggle for more time for leisure, family and relaxation should be linked to broader fights. Increased public ownership of the economy should be structured to create more worker self-management and control. If technology means a further reduction in secure work, a universal basic income – a basic stipend paid to all citizens as a right – may become ever more salient’

https://www.theguardian.com/commentisfree/2017/nov/16/working-four-day-week-hours-labour

Education without jobs

Today’s  ONS Labour Market Bulletin, provides further  data about the changing  relationship between young people, education and employment.  Even if it’s still much higher than for other age groups, youth unemployment continues to fall.  For July to September 2017, joblessness  for 16 to 24 year olds was 11.9% ( down from  13.1%  a year earlier and close to the lowest ever recorded).  The data also shows that over a third of those classified as unemployed are full-time students looking for part time work.

There’s  been a  42 000  increase in the number of young people dropping out of the labour market in the last 3 months – but the number in  full-time education has increased by another 20 000, a continuation of a long term trend.  Between March to May 1992 and July to September 2017 the proportion of people aged from 16 to 24 who were in full-time education increased substantially from 26.2% to 44.3%. Since 2007, numbers of  18-24 year olds in full-time learning have gone up from 27% to 33%.  Though there has been a 270 000 increase in the size of the total labour force in the last 12 months – employment among 18-24 year olds (including students) has fallen.

An increase in the number of young people in FT education is generally considered to be a good thing, representing an increase in the nation’s stock of ‘human capital’:  but it’s also a reflection of how many traditional employment opportunities  have disappeared and how apprenticeships have not provided a satisfactory alternative.  A more ‘highly qualified’ society doesn’t always lead to a more productive one.