Labour: Apprenticeship wages should be subsidised

In National Apprenticeship Week, shadow minister Toby Perkins sets out Labour’s plans to boost the scheme
12th February 2021, 3:52pm

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Labour: Apprenticeship wages should be subsidised

https://www.tes.com/magazine/archived/labour-apprenticeship-wages-should-be-subsidised
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There has never been a better time to recognise the enormous contribution made by apprentices than National Apprenticeship Week, nor to resolve to do all in our power to increase the availability and effectiveness of apprenticeships.

Apprenticeships are rightly seen as the gold standard of vocational and technical education. They offer young people and adults a way to earn as they learn and to get their first step on the ladder to a new career.

It has been one of the best parts of my role to talk to apprentices and to hear first-hand of their dedication, commitment and enthusiasm for their work. Last week, I was interviewed by Annie, who has set up her own business after completing a food science apprenticeship. Listening to her experience was a timely reminder of how many opportunities are created for those undertaking an apprenticeship.


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Amid the National Apprenticeship Week celebrations, it is important to acknowledge that the past 12 months have been a tough time for apprentices, with worrying signs about the future. With the challenges of the pandemic, there have been apprentices who have been furloughed, apprentices who have been unable to learn remotely and apprentices who have been unable to progress on to employment or the next stage of their apprenticeship.

Boosting apprenticeship starts

Apprenticeship starts are in freefall: the decline in numbers that started long before the Covid crisis has turned into a full-blown collapse.

A recent report by the Homeserve Foundation showed that there was a need for 68,000 new apprenticeships in the construction industry alone but not enough employers coming forward. JTL Training said it has 10 applicants for every one of the more than 2,000 construction industry apprenticeships it currently delivers.

Apprenticeships are disappearing faster than they’re being created, with the government’s cash incentive not doing enough to motivate employers to create new opportunities. Out of its stated target of 100,000 new apprenticeship starts, only 18,670 had been created by 8 January. Even if the government were to extend the deadline once again, it is clear that bolder action is needed. 

That’s why I’m proud to be outlining Labour’s policy to create 85,000 new apprenticeships for 16- to 24-year olds this year. By offering wage subsidies of 50 per cent to employers for the first year of a new apprenticeship, Labour are determined to boost the opportunities of young people and support organisations to bridge skills shortages by training up the next generation.

We are urging the government to adopt our proposals and we are offering to work with ministers to make it a success. The shock of the pandemic to our economy makes it clear that we must work with businesses to create opportunities for training and work now if we are to have a jobs-led recovery. Last year £330 million was returned to the Treasury in unspent apprenticeship levy funds. We believe that this year the underspend must be used for its original purpose - creating apprenticeships.

I can think of no better way to mark National Apprenticeship Week that by committing to offer more young people the opportunity of an apprenticeship.

Toby Perkins is Labour’s shadow apprenticeships and lifelong learning minister

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