Decision details

Apprenticeship Reforms

Decision Maker: Education Scrutiny Committee

Decision status: Recommendations Approved

Is Key decision?: No

Decisions:

A report was presented providing the Committee with an overview of the apprenticeship reforms including the apprenticeship levy, and the development of an Apprenticeship Growth Plan to support individuals, employers and providers.

 

In the spring of 2017 the Government introduced the Apprenticeship Levy for all employers with a pay bill over £3 million, this would impact 2% of businesses in England.

 

The Government had set a target to achieve 3 million apprenticeship starts by 2020 which was underpinned by a series of reforms in apprenticeship policy and funding. It was noted that a significant step change would be required in order to meet this target given the number of apprenticeship starts prior to the Levy. The money taken by HMRC through the PAYE system would only be used by employers for the purposes of training and assessment of apprenticeships. New standards of qualifications would be developed by groups of employers and expanded to include higher and degree level apprenticeships putting employers at the heart of the system. It was noted that the Levy was not just for young people starting their careers but would provide the opportunity for people of all ages and levels to change career path. The Levy could essentially allow any person to obtain a degree without having to go to university in the traditional sense of attending university on a full time basis and paying tuition fees.

 

The purpose of the Apprenticeship Growth Plan was to make the apprenticeship system work for Lancashire, encompassing the areas supported by Lancashire County Council, Blackpool Borough Council and Blackburn with Darwen Borough Council. The Plan identified key priorities and actions to help deliver the growth targets, local needs and opportunities and skills gaps. It was noted that the Plan was a live document and would be continually updated. A glossary of acronyms would be incorporated.

 

The Lancashire Skills and Employment Strategic Framework identified growth in apprenticeships as a key priority in tackling replacement demand and skills shortages, as well as improving economic wellbeing in Lancashire. The framework was published on the LEP website. It was noted that the version supplied with the agenda papers was for 2017/18 and not 2016/17 as stipulated.

 

Questions and comments by the Committee in relation to the report were as follows:

 

·  On skills gaps it was noted that apprenticeship standards could only be developed by a group of employers if there was a gap that needed to be addressed. It was also noted that this approach would be the most suitable way for employers to spend the Levy.

 

·  The Committee was informed that there were now going to be nursing apprenticeships and apprenticeships in many different areas because employers would be paying the Apprenticeship Levy.

 

·  The County Council was in the process of developing two 'trailblazer' apprenticeship standards to meet specific public sector needs. It was noted that the term trailblazer was a reference to the standard whilst it was being developed.

 

·  On the definition of apprenticeship, it was highlighted that apprenticeships would not necessarily include a formal qualification, as this would depend on an employer's needs for the role.

 

·  One of the key criticisms from the Ofsted inspection 2015 was the provision for care leavers and the tracking of them. It was confirmed that a greater emphasis on tracking care leavers after leaving Year 11 through to the age of 18 was taking place. In addition it was reported that if a care leaver was not in education or employment the default position would be that an offer of an apprenticeship would be given.

 

·  The Government had put aside additional support for apprentices in certain circumstances. For 16 to 18 year olds the employer would be given £1000 per year and the training provider would be given £1000 per year to recognise the additional support required for this cohort. Likewise, 19 to 24 year olds who were leaving care, or had an Education, Health and Care Plan (EHCP) the employer and training provider would also receive £1000 each. Additional support mechanisms were also available for smaller employers to take on young people.

 

·  There was European Social Fund money available to support young people who were at risk of disengaging from their curriculum in school. For pre-sixteen year olds mentoring support was available. Traineeships were available for young people who wanted to go on to apprenticeships but were not ready for them yet. For adults there were access to employment projects to help them gain additional skills. The Committee was informed that the European Social Fund was available until 2020.

 

·  Regarding Small to Medium Enterprises (SMEs) and apprenticeship schemes, it was reported the Government would fund 90% for apprentices and 10% for employers. If large employers did not spend their Apprenticeship Levy after two years, 10% of the Levy would go to SMEs.

 

·  Concern was expressed around young people entering into an apprenticeship scheme "of the moment" but may well end up coming back through the system to be reemployed to do another skill along their career pathway. It was confirmed that there would be multiple entrants into the workplace with multiple changes in career patterns. Young people would therefore need appropriate access to information and guidance regarding pathways into employment.

 

·  Concern was also expressed around employers using the Levy as a tool for obtaining basic labour doing basic skills and the affect this would have on people obtaining advanced and higher apprenticeships starts.

 

Resolved: That;

 

  i.  The report be noted; and

  ii.  The Apprenticeship Levy and careers advice topics be added to the work plan, subject to the outcome of the work planning session for the relevant Scrutiny Committee held after the elections in May 2017.

 

Date of decision: 28/03/2017

Decided at meeting: 28/03/2017 - Education Scrutiny Committee

Accompanying Documents: