Around 60 per cent of employers have stopped recruiting apprentices altogether, a survey by the Association of Employment and Learning Providers reveals.
Data from the survey also show that less than 4 per cent of training providers have managed to obtain a Coronavirus Business Interruption Loan (CBIL), with another 21 per cent still waiting to hear if their application has been successful.
AELP chief executive Mark Dawe said that training providers cannot keep offering remote training for apprenticeships if their income is running dry.
He said: “The government needs to support young people with apprenticeships now and to reskill unemployed adults, and it needs good quality training providers operating around the country to be able to do this.
“This latest survey confirms again that CBILs do not offer the solution that the education ministers expect and so they should be looking at extending their Covid-19 supplier relief scheme to cover all apprenticeships in line with the Cabinet Office guidance.”
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The data also reveals that 75 per cent of employers have stopped at least 80 per cent of starts normally expected at this time of year, and a third of apprentices have less than a one in five chance of completing their programme.
Almost a third of providers (31 per cent) anticipate between a quarter and a half of their apprenticeship business disappearing as a result of the coronavirus pandemic.
Apprenticeship training providers at risk
Mr Dawe added: “Contrary to comments made, training providers are not just like any other private business. They are government contractors delivering the government’s flagship skills programmes, which will be critical after the pandemic is over. No Treasury money is required for the [Department for Education] to preserve the provider infrastructure needed but time is now running short before we start seeing high-quality and niche providers lost for good.”
Training providers that do not access levy funds to deliver apprenticeships can apply for the DfE’s supplier relief scheme: providers cannot seek this support for apprenticeships funded through the levy.
The AELP has sought legal advice on this and published a letter sent to the DfE in which lawyers say that the government’s alleged failure to act in accordance with Cabinet Office guidance “displays a multiplicity of legal errors” and “an abuse of power”.
A Department for Education spokesperson said: “While we do not yet know the full impact of coronavirus, our focus is supporting employers, apprentices and training providers during this challenging time so people can continue to access high-quality apprenticeship opportunities.
“This includes encouraging providers to deliver training remotely wherever possible. A recent survey by the AELP showed that this approach is working, with 81 per cent of apprentices able to continue with their studies remotely.
“In addition to the support available to all businesses, and the flexibilities we have already announced to support providers and their students during the Covid-19 outbreak, our Provider Relief Scheme will also offer additional financial support so they can continue to deliver high quality training. We are continuing to monitor the situation closely and will consider further support or flexibilities may be needed.”
