A decline in apprenticeship opportunities at lower levels is a major concern and means a rebalancing of the apprenticeship levy is needed to ensure that young people can gain access to the jobs market, the Association of Employment and Learning Providers has warned.
The AELP issued its warning as new government data showed that between August 2020 and January 2021, apprenticeship starts were down by 18.5 per cent to 161,900, compared with 198,600 reported for the same period in 2019-20.
In that same time, the number of intermediate apprenticeships had the biggest drop - from 65,000 in 2019-20 to 41,500 this year. While in 2019-20, these apprenticeships at level 2 made up around a third of total starts, they now make up just over a quarter.
Higher apprenticeships have increased, meanwhile, from 46,000 starts to 51,400 in the August-January period. They now make up almost a third of starts.
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AELP chief executive Jane Hickie said: “The decline in intermediate apprenticeship opportunities in comparison with the jump in higher apprenticeships is a major concern, especially when the pandemic is resulting in more young people struggling to find work.
Apprenticeship levy ‘needs rebalancing’
“Apprenticeships should be about a ladder of opportunity but you can’t climb a ladder if the bottom rungs are missing. The chancellor’s Plan for Jobs incentives for apprenticeships have been welcome but in the medium to longer term, we need a rebalancing of the levy funding system to benefit young people and provide more opportunities at the intermediate level.
“The incentives should also be retuned to support this rebalancing into the medium term after the pandemic is over. Funding for 16- to 18-year-old apprenticeships should be removed from the levy system and these opportunities should be funded by the DfE’s mainstream budget as they were before 2017.”
Apprenticeships and skills minister Gillian Keegan said: “Apprenticeships are playing a central role in helping to deliver the skills that individuals, businesses and the economy need to recover from the pandemic.
“We are doing everything we can to ensure apprentices and employers get the support they need. Over 45,000 applications have been submitted by employers for our offer of a cash boost to hire new apprentices. We have increased this amount to £3,000 and extended the initiative until September 2021, which will help even more people to kick start or upskill their career.
“The return of all learners to full on-site training and assessments in March was also a significant step forward in our ongoing recovery from the impact of the pandemic. As we build back better, I look forward to seeing our exciting range of apprenticeships continue to change lives and boost business across the nation.”
