Last week’s proposals by Baroness Alison Wolf to devolve apprenticeship funding to local leaders is not only misguided but risks undoing progress made in creating an employer-led apprenticeship system and taking us back 10 years.
There are, of course, ways in which we could improve the apprenticeship system.
Some of these the government are already making progress on – foundation and shorter duration apprenticeships are, for example, a positive step forward; others such as ensuring the overall programme budget matches the apprenticeship levy require additional funding to be released.
That’s not to say that metro mayors should not have a voice on skills needs – their input is valuable. However, giving commissioning powers to local leaders on apprenticeships would be a significant backward step.
Local leaders should influence, not control, apprenticeships.
Having read the proposals, I strongly suggest it’s doubtful that Alison Wolf has bothered to actually ask employers what they want and if they would be willing to juggle such a new postcode lottery system either.
Expertise and insight
The foundation of the current apprenticeship system is the principle that employers are in the strongest position to determine their workforce needs.
It is employers who have the expertise and insight to align training with real-world requirements. They are best placed to ensure that apprenticeships deliver the skills businesses need to thrive.
Shifting commissioning to local leaders would undermine this employer-led approach.
Local authorities and regional bodies, while well-intentioned, do not possess the same direct understanding of industry-specific skills gaps or future workforce demands.
This is particularly problematic in a rapidly evolving economy where adaptability and responsiveness are paramount.
Costs and inefficiencies
One of the most glaring flaws in devolving funding to local leaders is the inevitable increase in administrative costs. Currently, 98 per cent of the apprenticeship budget is already spent.
Adding additional layers of governance, commissioning, oversight and bureaucracy would only eat further into a budget that is already under pressure.
This would reduce the funds available for the actual delivery of training, undermining the primary purpose of the programme.
At a time when every pound of apprenticeship funding needs to be maximised it is hard to justify siphoning off yet more resources to fund unnecessary layers of local administration.
Bid writing nightmare
If funding were to be devolved to local leaders, then training providers would inevitably face the prospect of a bidding war for regional or local funding contracts. This would result in a costly and time-consuming process, with providers forced to dedicate significant resources to bid writing rather than delivering high-quality training.
Moreover, the competitive nature of a bid-based system introduces uncertainty. History tells us there is no guarantee that the providers who are best placed to deliver apprenticeships are successful and that they then get the right amounts they need to meet their employers’ needs.
This misalignment between prime providers, allocations and actual needs would destabilise the apprenticeship system, making it harder for both providers and employers to plan effectively.
Fragmented and bureaucratic
Devolving apprenticeship funding to local leaders would create such a fragmented, bureaucratic system that it would hamper employer engagement.
Unlike the current system, which allows access to a wide range of providers, a devolved model would restrict options and result in reduced choice. It also risks undermining the effectiveness of apprenticeships and employer confidence in the system.
Rather than devolving control and letting apprenticeships take a different and scary direction, efforts should continue to focus on making the current approach more seamless for employers.
The current apprenticeship service is far from a perfect platform and there is certainly still more that can be done to improve it, especially for small employers. But devolving control and commissioning to local and regional authorities would be a huge mistake.
