Government urged to do more to increase the number of apprentices

Labour analysis shows 60 per cent of Government departments are not meeting their own apprenticeships policy. It found that the DfE took on 142 apprentices last year, out of a workforce of more than 7,000, falling short of hitting its own target for public sector organisations to employ new apprentices. But a DfE spokesperson said it had met the target successfully between 2017 and 2020.

‘As the lead department responsible for apprenticeships, we are taking action to support more people to do an apprenticeship and gain the skills they need to build a rewarding career,’ the spokesperson said.  

‘It is not true to say the Department for Education has not met the public sector apprenticeship target – which was met successfully between 2017 and 2020.

‘We continue to be one of the leading departments in recruiting and supporting apprentices, and across government the Civil Service met its target of over 30,000 apprenticeships in the year 2020/21.

‘Growing apprenticeship starts remains a key priority and we are pleased to see that the latest figures show a big rise in the number of people starting apprenticeships this academic year. We will continue to work with employers to boost the number of apprenticeships available including by increasing apprenticeship funding by £2.7 billion by 2024-25 to support businesses of all sizes to build the skilled workforce they need.’

Shadow education secretary Bridget Phillipson, warned that under the Conservatives education and training opportunities are in ‘freefall’, contributing to ongoing skills shortages. She is calling for Ministers to secure training opportunities for young people.

Over the last decade apprenticeship starts have fallen by nearly 200,000 with particular declines among young people aged under 24. To tackle this shortage of opportunities, Labour has pledged to create new opportunities for young people to earn and learn with support for employers to take on 100,000 new 16 to 24 year old apprentices this year.

‘Labour is working with employers, educators and training providers to deliver the skills our country needs to prosper,’ said Phillipson. ‘The Government should have adopted Labour’s plan for a wage subsidy delivering 100,000 new apprenticeship starts this year, and ensure every young person is leaving education ready for work and ready for life.

‘Instead, ministers are failing to create opportunities in their own Department and secure the skills our country needs. The education secretary needs to get a grip and show some leadership.’

Government urged to 'bring down' the immediate cost of taking on an apprentice 

The Government is also being urged to review its planned rise to National Insurance Contributions (NICs) to address the decline in the number of people taking up apprenticeships. 

Although exemptions do exist for apprenticeships, the Federation of Small Businesses (FSB) estimates that employers are paying NICs for most apprentices across the UK.

Apprenticeship starts have dropped from under 500,000 a year in 2016/17, before the introduction of the Apprenticeship Levy, to under 325,000 in 2020/21. To address this fall, the FBS is calling on policy makers to:

• Remove all employer NICs costs for apprentices to spur role creation.  
• Cancel planned increases to NICs across the board and dividend taxation to free up funds for recruitment and training among entrepreneurs.  
• Reintroduce the £3,000 incentive to hire an apprentice that ran until January of this year, targeting the funding at small businesses.

FSB National Chair Mike Cherry said apprentices are our future business leaders and innovators, and we should be creating more opportunities for more.

‘By looking again at its approach to NICs, the Government can make a real difference here – directly, by bringing down the immediate costs of taking an apprentice on, and indirectly, by freeing up more funds for recruitment and training at a moment when cash reserves are depleted,’ he said.

‘Small businesses disproportionately hire young people and those from disadvantaged groups when they create apprenticeships, so a targeted reintroduction of the hiring incentive that existed over lockdowns makes sense in the context of the levelling up agenda.’   

Wales invests £366m into apprenticeships 

Meanwhile in Wales, the government is investing £366m over the next three years to deliver 125,000 all-age apprenticeships across Wales during this term, economy minister Vaughan Gething has announced.

The minister said this major investment will help support the Welsh Government’s commitment to ensure at least 90 per cent of 16-24 year olds in Wales will be in education, employment, or training by 2050, and to eradicate the gap between the employment rate in Wales and the UK by 2050.

Gething urged employers to use National Apprenticeship Week to look at how apprenticeships can ‘supercharge’ their futures.

‘Apprenticeships can help futureproof, motivate and diversify a workforce – offering people the chance to gain high-quality vocational skills. They are also crucial to our ambitious vision for a Wales where no one is held back,’ he said.

‘The £366m will increase opportunities for people of all ages and backgrounds to develop transferable skills in the workplace and improve their lives. It will also help tackle skills shortages and gaps in priority sectors critical to drive productivity and economic growth, supporting our net zero ambitions, the every-day foundational economy and public services.’

Ministers will also invest more in supporting people with disabilities to take up apprenticeship opportunities over the next three years.