Urgent call for apprenticeship system overhaul benefits small businesses and youths
In a bid to address the issue of nearly one million young people not in education, employment, or training, a call for apprenticeship reform has been made to upskill and get more young people into work.
Recent reports, such as the Edge Foundation's "Chaos to Coordination" and "Agents of Change," and the Social Impact Catalyst's "Agents of Change," highlight the failing apprenticeship system that is hindering both small and medium-sized enterprises (SMEs) and young people.
One of the key recommendations is the establishment of a national one-stop shop for apprenticeships, building on the Government's Find an Apprenticeship platform. This would aim to make apprenticeships more accessible for everyone.
The reports also call for a nationally coordinated, locally delivered brokerage system to ensure every SME can access practical support. Simplifying the apprenticeship system, especially for smaller firms, could encourage more employers to take on apprentices.
The REC Deputy Chief Executive, Kate Shoesmith, suggests delivering the flexibility within the Growth and Skills Levy funding model to make apprenticeships and training more accessible for all.
In 2023, over 40% of UCAS applicants expressed an interest in apprenticeships, indicating a growing demand among young people. However, for every young person who secures an apprenticeship, three apply unsuccessfully due to a fragmented, duplicative, and technically flawed application system.
The reports note that many employers remain unaware of various government incentives for hiring apprentices, such as National Insurance relief, fully funded training for apprentices aged under 22 in SMEs, and incentive payments for hiring apprentices aged 16-18 and 19-24 in certain circumstances.
Close to half of the employers surveyed by the REC said that an apprentice who has already taken part in work-readiness skills training or a Foundation Apprenticeship would encourage them to take on a young person as an apprentice. Furthermore, nearly 70% of SMEs said that tailored advice on how apprenticeships could meet their skills needs would encourage them to take on a young apprentice.
A reformed apprenticeship system could potentially unlock a wave of opportunities beneficial for individuals, businesses, and local economies. The reform of apprenticeships is crucial to help the Government reach their overall target of 80% of people in employment.
However, it's worth noting that the recent reports do not mention any new government incentives for hiring apprentices, unlike the previous Edge Foundation report.
The need for a simple, joined-up system that works for young people and SMEs, as highlighted in these reports, is paramount to unlocking thousands of life-changing opportunities for the future. Alice Gardner, CEO of Edge Foundation, emphasizes this point, stating that such a system could be the key to unlocking these opportunities.
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