Around a third of the providers on the register of apprenticeship training providers have yet to take on any apprentices, according to the Association of Employment and Learning Providers (AELP).

Since the register was introduced by the Education and Skills Funding Agency in March 2017, when 1,708 providers were approved, there have been just two large tranches of new providers added to the list. Currently, there are 2,957 providers on the register.

AELP chief policy officer Simon Ashworth said it was originally envisaged that the register would open every quarter for applicants, but so far it has been very “stop-start”, leading to a “race to the line” to get on to the register, as it was not clear when new entrants would be able to sign up. Around 30 per cent of the providers on the register are believed not to have delivered any apprenticeships, he added.

Why are providers not active?

Mr Ashworth said the providers that have not delivered apprenticeships were a combination of prime providers, supporting providers and employers. He believes there are three main reasons why some providers were lying dormant on the register:

• “The ESFA have been unclear when they will open windows to apply to join the register and how often they will open them. Therefore some providers have grabbed the opportunity now to join, ready or not to deliver.”
• “Some of them are still waiting for the Institute for Apprenticeships to approve the relevant standards for their programmes.”
• “Others are opportunists seeing a potential commercial resale opportunity for their business, just by being on the register.”

‘False picture of capacity’

Mr Ashworth said the large number of providers on the register gave a “false picture of capacity and capability” in the supply chain. “When organisations are on the register but not delivering, it makes it look like the supply side is really buoyant, but it is probably not as buoyant as it looks.”

He added: “If it was more clear when applications to the register [would be] open, it would help resolve some of the issues.”

Mr Ashworth said some providers that want to deliver but are not on the register are being told by brokers that they can buy their way on to the register.

‘Middle-men taking advantage’

There is also some “bad practice”, he said, with providers paying “five, 10, 30 grand to buy a shell business” - despite there being “no guarantee they might not get chucked off” the register, because of issues around change of ownership and obtaining permission from the ESFA. These companies are “not adding any value” to the register and the system should be designed to avoid “middle-men taking advantage”, Mr Ashworth added.