Apprenticeship starts grew in the month Labour took power

Apprenticeship starts grew 3 per cent in July amid concern employers cut training investment when Labour entered government. 

Provisional Department for Education figures show 19,410 people enrolled on an apprenticeship in the month of the general election compared to 18,790 in July 2023. 

Overall starts reported to date for the full 2023/24 academic year hit 338,640, which is 0.6 per cent higher than the 336,510 reported at the same point in the previous year. 

Labour pledged in 2022 to turn the apprenticeship levy into a growth and skills levy so it could fund other types of training. The party confirmed this plan in the run up to the election, which was called on May 22, but has so far failed to set out a roadmap that shows employers when to expect new flexibility.

Five weeks after Labour won the general election on July 4 the Association of Employment and Learning Providers said it had received “multiple reports” of employers slowing down training investment in the belief levy reform was imminent.

The membership body added this would “lead to a reduction in apprenticeship starts as well as training being held back in the belief that a more flexible levy will cover those costs later in the year”.

Starts did fall by 520 to 18,920 in June, compared to the previous year. 

But they increased 620 year-on-year in July. 

Simon Ashworth, AELP deputy CEO and director of policy, said future data for August and September would provide a “clearer picture” about the extent of the perceived slowdown.

He told FE Week: “The rise in apprenticeship starts over the last year is welcome news. That said, AELP members continue to report that some employers have withheld training spending in anticipation of significant levy flexibilities. 

“Any apprenticeship spend in the data covered by the recent release would have been planned well ahead of this period, so would not take account of this. The apprenticeships data for August and September will give us a clearer picture of the extent of this slowdown.

“We are confident that the reforms outlined by the prime minister at his recent conference speech show that 50 per cent flex is not on the agenda, and that there is no reason for employers to delay any apprenticeship spending this year.”

Final full-year 2023/24 apprenticeship stats are expected to be published next month.

Thursday’s provisional data shows starts for young people aged under 19 grew slightly (1 per cent) from 77,510 in 2022/23 to 78,590. 

Starts for those aged 19 to 24 fell from 98,490 to 95,630  (3 per cent) while enrolments for adults aged 25 and above increased by the biggest proportion (2 per cent) from 160,510 to 164,420. 

Meanwhile, level 2 starts fell from 76,210 in 2022/23 to 70,860 (7 per cent) and level 3 starts dropped from 147,420 to 146,110 (1 per cent). 

Higher apprenticeship starts for levels 4 and above rose from 112,890 to 121,660 (8 per cent).