A recent study proposes significant improvements to youth apprenticeships.
- The Apprenticeship Levy, introduced in 2017, faces criticism for unintended negative effects.
- There is strong support for an Apprenticeship Guarantee targeting youth aged 24 and under.
- A more flexible skills levy is recommended to better balance workforce training needs.
- Experts highlight the impact of declining apprenticeship starts on social mobility.
Research led by the CIPD in collaboration with Youth Futures Foundation emphasises the necessity to overhaul current apprenticeship frameworks to aid young people. The report, leveraging extensive surveys from over 2,000 organisations, critiques the Apprenticeship Levy introduced in 2017 for inadvertently promoting the redirection of funds away from new apprenticeships towards existing employee training programmes.
Surveys within the report reveal that while a significant portion of employers (approximately 60%) believe apprenticeships should predominantly facilitate young people’s entry into the workforce, the current system inadequately supports this goal. Instead, evidence shows that a majority of levy-paying entities admit to repurposing pre-existing training activities as apprenticeships merely to reclaim levy contributions.
The report underscores a stark decrease in apprenticeship initiation among youth, recording a 41% decline for those under 19 and a 36% reduction for individuals aged 19-24 between 2015/16 and 2022/23. Such figures illuminate the Levy’s partial role in dampening employer investments in skill development, contrary to its objectives.
Further analysis indicates abysmally low apprenticeship completion rates, with a mere 54.6% achieving qualification, leading to significant financial inefficiencies, as demonstrated by the £620 million spent on incomplete training in 2021/22. This inefficacy is partly attributed to training content being unsuitable, having been repurposed for levy compliance rather than tailored to genuine development needs.
To counter these challenges, the document advocates for an Apprenticeship Guarantee ensuring availability for Levels 2 and 3 apprenticeships for qualified youth under 24, and transforming the Apprenticeship Levy into a flexible skills levy. This proposal includes reserving 50% of such funds specifically for youth-based apprenticeships, aiming to enhance workforce inclusivity and spur substantial organisational growth.
Key public figures, such as Peter Cheese, CEO of the CIPD, assert that bolstering apprenticeships is vital to reversing declining social mobility and enabling businesses to skillfully tackle technological and environmental transitions. A focus on modular training and micro-credentials is also encouraged to offer efficient, cost-effective workforce development solutions.
Barry Fletcher, CEO of Youth Futures Foundation, reinforces this stance, noting international evidence supporting the benefits of apprenticeships for youth employment. Fletcher advocates for policy reforms to augment young people’s participation in apprenticeships, a sentiment echoed by over 90% of surveyed employers who favour prioritising these opportunities for the emerging workforce.
The study compellingly argues for comprehensive policy shifts to revitalise youth apprenticeships and better allocate training resources.
