Category: Apprenticeships

Apprenticeships. New figures, old failures

is‘High quality skills and apprenticeships lie at the heart of the government’s drive to create the skilled workforce British industry needs to thrive, to boost productivity and build an economy that works for all’ (DfE press release 06/10/16)

As the DfE attempts to talk up apprenticeships, its own data* paints a rather different story. It’s true that between August 2015/16 there were 503,100 starts, slightly up on the previous year, but Cameron also promised that apprenticeships would be high skilled and  provide opportunities for young people. Here the figures continue to be disappointing.

  • Only 130 000 of new starts have by under 19 year olds (up by just 5000 compared to last year) with those 25+ being the largest group (221,000)

  • 60% continue to be at Level 2/ GCSE level (87, 000 of these by under 19 year olds). The number of Advanced Level starts has barely increased since last year. The number of Higher Level (equivalent to starting at university) are up by nearly 30%, but there were still only 27 000 (just 1,700 starts by those under 19)

Finally, though apprenticeships have been by the government as integral to rebuilding manufacturing,  separate sector figures show:

o             142 000 in business and admin

o             131 000 in health & care

o             84,000 in retail

o             77,000 in engineering & manufacturing 

These figures mean that apprenticeship continue to be associated with low paid, low skilled sectors. It’s also the case that 53% of starts were by women – who fill most of the low paid jobs in retail and care

The government has introduced new Trailblazer standards,  developed by groups of employers in each sector and have been designed to address apprenticeship critics. – yet less than 4000 starts have been on these new schemes.

In conclusion:   despite being re -launched and rebranded, apprenticeships continue to experience the same problems. Rather than providing new opportunities for young people or being an alternative to university, they represent Another Great Training Robbery  (Allen 2016   

It should be understood also, that apprenticeships continue to reflect employment trends rather than significantly challenge them, as many of those critical of apprenticeships still fail to understand that in order to begin one, an applicant has to have a job.

The major problem at the moment is that there are nowhere near enough good quality vacancies compared with the number of young people who want them.  In this respect, it’s alternative economic policies that are needed as much as new education and training initiatives like the Government’s proposed Post-16 Skills Plan. 


Debate about the Highers continues

Apprenticeship figures don’t match the optimism

Skills Minister Boles

Skills Minister Nick  Boles

The government’s ParliamentToday website (23/03/16)  has attempted the usual ‘spin’ with  the latest apprenticeship figures, pointing to  84 000  starts by under 19 year olds between August 2015 and January 2016  and to 366,000  across all levels and age groups during the current parliament.  Skills Minister Nick Boles also told the site there has been a ‘dramatic increase in the number of higher apprenticeships’ with 11 000 more starts since last August.

In fact the total number of new starts (251 000)  for the last six months just about keeps up with the 500 000 starts for the previous twelve, while  those  by under 19 year olds only just tops the figure for the same period  last year (83,400) .  As for Mr Boles dramatic increase in Highers, only about a third of these starts were by people under 25.

Based on these latest figures, the government will struggle to reach the 3 million it has promised for 2020 -and it’s still the case that 60% of new starts continue to be at Intermediate Level, a standard most school leavers have already reached

Higher Level Apprenticeships:  A slow start.

David Cameron qualified his pledge to create three million more apprenticeships with ‘That’s three million more engineers, accountants, project managers’ Expanding the Higher Level apprenticeship  will be considered fundamental to this, with the then Business Secretary, Vince Cable arguing at its 2012 launch that:

‘Investing in skills is central to our drive to boost business and productivity and make the UK more competitive… by radically expanding the number of degree level apprenticeships for young people, we will put practical learning on a level footing with academic study. This is an essential step that will help rebalance our economy and build a society in which opportunity and reward are fairly and productively distributed.’

                (DBIS Press Release 08/12/11)

Higher Level qualifications were established as Level 4, 5 and 6 qualifications, equivalent to foundation degree study and above. Though it is possible to provide these through a workplace NVQ, employers were also encouraged to work with higher education institutions. There are some schemes like those at BBC where apprentices complete a course of university study, but the influence of private providers is also apparent.

As part of the new Trailblazer initiative –where apprenticeship training schemes are being  rewritten to ensure higher levels of quality and to be more in line with specific employer requirements –degree  level apprenticeships are now also being established  with specifications soon available for everything from quantity surveying and accountancy  to solicitor  training. These will be designed to work with higher education institutions, not in competition with them.

The main problem is not about the design however. Though the number of Higher Level apprenticeship starts have continued to increase significantly, they still represent only a tiny fraction of the total number however – SFA data showing under 30,000 in existence at the end of 2014/15. With 19,300 starts during 2014/15, there were just over 1,000 starts by those under 19 and 15,000 by those under 25 or over.  In the three months between August and October 2015, another 800 under 19 year olds started a Higher Level apprenticeship  compared with the 250 000 placed in university for the new academic year.

The only sectors where Higher Level apprenticeships have any visible presence is in health and business management. They are virtually non-existent in engineering and manufacturing. Those employers that have wanted to, have continued to sponsor university students, so it is not clear why they would want to establish Higher Level apprenticeships instead. Secondly, the huge increase in the number of graduates means that employers have much less of a need to protect their future labour supply. Rather than employers finding it difficult to attract highly qualified graduates the issue for the current generation is to avoid being pushed down out of graduate employment.

With two thirds of apprentice starts continuing to be at intermediate Level, this mean that although schools have been criticised for not promoting them, apprenticeships are not an alternative to higher education for young people and schools should not pretend they are. With so few Higher Level starts also, the effect of apprenticeships on universities, even  the  ‘new’ post-92 institutions many of whom have a strong vocational emphasis, continues to remain unclear

Morgan instructs schools to promote apprenticeships.

thFollowing Ofsted Chief Michael Wilshaw’s criticism of ‘one size fits all’ academic learning,   Education Secretary Nicky Morgan has criticised state schools for ‘outdated snobbery’ and promised a new law that ensures they promote technical education and apprenticeships as real  alternatives to university. Morgan told the Independent:

‘For many young people going to university will be the right choice, and we are committed to continuing to expand access to higher education, but for other young people the technical education provided by apprenticeships will suit them better’.

But the government’s own figures have continued to show only a minority of the 2 million apprenticeships created since 2010 have been for school-leavers – in 2014/15 just 20% of starts were by those under 19. Well over half of new starts have also been ‘low-level’ (being offered at Intermediate level – equivalent to GCSE, a level that most school leavers have already reached) and ‘dead-end’ (not leading to permanent employment, or allowing progression to higher levels of training). Meanwhile, ‘cutting edge’ apprenticeships in engineering and technology for example, are massively oversubscribed.

 Even Ofsted has published a damning report about apprenticeship quality:

‘Inspectors, observed for example, apprentices in the food production, retail and care sectors who were simply completing their apprenticeship by having existing low-level skills, such as making coffee, serving sandwiches or cleaning floors, accredited.  While these activities are no doubt important to the everyday running of the businesses, as apprenticeships they do not add enough long-term value.’ (Ofsted, 2015: 4)

Morgan, like Wilshaw, is very good at spelling out  options for ‘other people’s children’ but with so few alternatives available for young people, then it isn’t surprising that, despite the fees, most of those who are able  will try  progress to university to improve their chances of any type of reliable employment.  Schools can hardly blamed for encouraging this.

Another  Great Training Robbery or a Real Alternative Alternative for Young People?

Rewritten and updated  January 2016front_page_001

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Apprenticeships. Channel 4 puts the boot in

downloadSome three years after  the BBC’s  Panorama  dramatically exposed the misuse of apprenticeship funding by the supermarket chain Morrison; this week’s Channel 4 Dispatches provided further disturbing evidence of how young people continue to be short changed, but also public money misspent, despite government reassurances that the reintroduction of apprenticeships has been a resounding success. Dispatches main target was the clothing chain Next, where young people taken on as ‘apprentices’ complained of low-pay, little if no proper training and worst of all, not even being given permanent employment at the end. Meanwhile, the company had continued to receive government funding – £1.8 million last year – to run a training program now rated ‘inadequate’ by Ofsted.

A Great Training Robbery
Using research by the Social Market Foundation, including that by Alison Wolf, commissioned to provide a review of vocational education by the Coalition in 2010, Dispatches argued that training organisations, in order to maximise their income have concentrated on providing low-skilled, but also ‘easy to complete’ and ‘easy to deliver’ apprenticeships in sectors like retailing; encouraging employers to use apprentices as a form of cheap labour without having any obligation to offer them future employment. These sorts of practices, do not, the SMF argues, significantly increase future earnings of the individual and they certainly don’t help the ‘skills shortage’ in areas like engineering or in construction (where apprentice numbers have fallen by a third since 2010) and where growth is essential if future economic prosperity is to be ensured.

As Dispatches acknowledged, the government plans to introduce a levy of large firms raising £2 billion annually, thus providing the funds for better, more advanced training to provide ‘the right people with the right skills’. It also intends to give individual employers more say over the content of apprenticeship training and how funding is used. But as these changes are not due to begin till 2017 at the earliest, the program concluded that in the meantime, young people could be just as likely to vote with their feet.

Dispatches and the SMF can be commended for continuing to expose the shortcomings of apprenticeships, particularly in the light of David Cameron’s pre-election promise of another 3 million by 2020. The failure of apprenticeships to provide real alternatives for young people has been largely ignored by most researchers, campaigners and activists who prefer to focus attention and energy on the inequities of the education system or the increasingly desperate plight of teachers. But it’s also the case that compared with the angry young school leavers parked on Youth Training Schemes in the 1980s, ‘apprentices’ are a diverse group, including people of different ages –many existing employers over 25 continue to be reclassified as apprentices so that training funds can be accessed –with very different experiences in different sectors. As well as thousands being like those at Next, there are also some very good schemes offering excellent training and real opportunities.

A jobs not a skills problem
Yet as well as giving apprenticeships a much greater profile, there’s also a serious need to develop a much wider understanding about their current limitations. Improving the quality and attractiveness of apprenticeships for example will be difficult without making other changes to the economy and the job structure which supports them. If thousands of apprentices are employed as counter assistants in Next, in coffee-shops, or in low-paid ‘customer service’ work, it’s in these sectors where many new jobs are being created. Likewise the reason why there are so few apprenticeships in engineering and in manufacturing is because only around 8% of the workforce are employed here. It’s not just that these sectors have collapsed as a result of overseas competition or extensive ‘outsourcing’, increased automation and the use of robotics also mean that the ‘traditional skills’ referred to by Dispatches  will no longer be sought –regardless of whether there is funding available. In otherwords it’s essential that alternative proposals for apprenticeship training (and education for that matter) are part of a wider alternative for the economy in which new types of employment opportunities are both properly planned, properly funded and allow both career and personal development. With a third of the population over 65 by 2050 for example, replacing the current decrepit care service with modern professionally staffed alternative, could be one place to start.

Osborne’s Spending Review. An apprenticeship levy and a ‘truce’ with austerity?

George Osborne’s decision to impose an apprenticeship levy v2-osborneon large firms represents a significant change in policy. In Germany and other European countries, employers are required to make a significant cost towards the cost of apprenticeship and skills training. Under Osborne’s scheme, employers with an annual wage bill of more than £3 million will have to make a payroll deduction of 0.5%. The scheme is expected to raise close to £3 billion –double the current size of the apprenticeship training budget.

Even though a step in the right direction, imposing a levy in itself is not enough to upgrade Britain’s ailing apprenticeships. Unlike in Germany, where agreements exist between employers, trade unions and state institutions, ensuring apprenticeships provide real transitions to work, UK firms will still not be compelled to offer them  and certainly not high-skilled ones.Though well over 2 million apprenticeships have been offered since 2010 –David Cameron promises 3 million more –the majority  have been ‘low-skilled’ and ‘dead-end’ –mostly at Intermediate (GCSE) Level, without guaranteeing progression to employment or further training. Significant evidence also shows that firms have reclassified existing workers to be able to access training funds . This has  allowed government to meet targets. Last year, for example, only 120 000 under 19 year olds began apprenticeships.  This can be compared to up to 60% of young Germans –mostly at Advanced Level.

FE gets off lightly?
There’s much relief that a further round of cuts will not decimate the FE sector as Osborne told MPs that core funding for FE (and Sixth Form colleges) will be protected. But the protection is in cash-terms and as  there may be  falling numbers of students because of demographic changes, colleges fill face reductions. The extension of the FE loans system to 19 to 23-year-olds raises as many questions as it provides answers as does the ‘opportunity’ for Sixth-Form Colleges to become Academies so as to be able to avoid VAT payments.

A ‘truce’ with austerity?
Because of growing opposition endangering his own ambitions to become the next prime Minister, Osborne made a significant U-turn on tax-credits.  Does this represent a fundamental change in course, or at least a ‘truce’ with austerity? Not at all. The Chancellor has been given extremely optimistic forecasts by the ‘neutral’ Office for Budget Responsibility (OBS) about future economic performance, that growth will be 2.4% for this year and next and that investment levels will continue to steadily increase.

As a result Osborne’s been allowed what the Financial Times (26/11/15) described as a ‘£27bn emergency exit route’ that allows him to retain his target for a budget surplus by the end of the Parliament –but more importantly, to continue to shrink the size and the role of the state to levels not seen since the 1930s. But previous OBS predictions have not always been correct, with the highly respected Institute of Fiscal Studies, continuing  to provide the clearest opposition to the government on economic policy, telling The Guardian (28/11/15) that it was only ’50-50’ that Osborne would not have too revisit his plans.