How do we incentivise the employers?

The key word is already in Apprenticeships.

We need to be doing more to ‘entice’ SMEs and other employers to take on Apprentices and even more importantly, offer real Apprenticeships that are based on ‘real’ jobs.

In our submission to the BIS Inquiry on Apprenticeships we will be emphasising a number of key points.

Firstly we welcome any growth in the numbers of 16 to 18 year old Apprenticeships, particularly in the current climate, but we would like to see as great a focus on the 19 to 24 year olds who are struggling to find employment or training opportunities.

Secondly, we need to see more evidence of recruiting apprentices to ‘real’ jobs. A number of training providers need to show more evidence of job outcomes; it is simply not good enough that in the past some apprentices have been recruited for seasonal work and short employment contracts.

We support the employer ownership agenda; employers need to be taking greater responsibility for investment in training if they want to meet their own skills needs.

However, at the same time, government needs to work harder to push the right messages to employers and to reduce bureaucracy as much as possible to incentivise co-operation.

we believe a rebate on tax or National Insurance would work better than a cash payment.”

There should be a bigger drive and push to convince SMEs of the value and ROI of taking on apprentices but we believe NAS’ Apprenticeship Week will be doing just that and we look forward to the media coverage.

Last but not least there needs to be more clarity on what does and does not constitute a 50 per cent contribution for 19 to 24 year old Apprenticeships as this is being interpreted differently by every provider.

Some financial incentives for employers might help, but in this difficult economic time we believe a rebate on tax or National Insurance would work better than a cash payment.

All in all we feel that NAS was started up with good intentions, but has a stretch to do to improve on quality, position Apprenticeships strongly in the market place and convince employers of the true worth and value of apprentices.

Lynne Sedgmore is Executive Director for the 157 Group

The National Audit Office passes judgement on adult apprenticeships

The National Audit Office (NAO) has published its ‘Adult Apprenticeships’ report today, which looks into “whether the Department for Business, Innovation and Skills (BIS) is obtaining value for money from the Apprenticeships programme”.

FE Week took a look at some of the key findings in the NAO report.

Value for money

Adult apprenticeships offer good value for money, but the government needs to focus its resources on industries which offer the best economic returns, the NAO claims.

The independent body says the BIS needs to “set its sights higher” on the apprenticeship programme, despite exceeding all previous expansion targets.

Amyas Morse, head of the NAO, said: “The apprenticeships programme has been providing a good return for public spending.

“Nevertheless, the Department should set its sights higher in order to get better value from the £0.5 billion and rising now spent on adult apprenticeships each year.”

The apprenticeship programme has increased by 140 per cent during the last five years, of which 68 per cent were learners aged 25 or above.

Previous recruitment targets set by government were smashed, at least in part, by the 182,100 new adult apprenticeship starts in 2010/11.

The NAO report criticised both BIS and the National Apprenticeship Service (NAS) for not targeting the qualifications, frameworks or age groups which will have the biggest impact on the economy.

The report states: “The Department needs robust evidence to identify which qualifications are having most impact and where the additionality delivered against public funding is greatest.

“The Department should use this information to decide where to target its resources. It has recently announced its intention to do so, though has yet to publish details.”

It later adds: “It has recently announced its intention to do so, though has yet to publish details.”

More than 80 per cent of the total  expansion in apprenticeships between 2006/07 and 2010/11 was covered by 10 occupations, with health and social care, customer service and retail coming out on top.

Meanwhile, engineering apprenticeships contributed just 2 per cent to the five year growth across all age groups.

Funding rates unreliable

The funding rates used to pay training providers for delivering an apprenticeship is not based on robust information, according to the NAO.

The NAO says the Skills Funding Agency (SFA) and NAS have set tariffs without “reliable evidence” to support estimated training costs.

The ‘Adult Apprenticeships’ report states: “The Agency and the Service currently set tariffs without sufficiently robust information on the cost of provision.

“This may mean that some frameworks have become more financially attractive to offer than others.”

The NAO say both the SFA and NAS are unable to judge the extent to which providers may be generating significant profits or losses as a result of inaccurate  rates.

Skewed funding rates on individual frameworks has led to some employers not paying the expected contributions towards training providers’ costs.

The report states: “Employers pay apprentices’ wages and deliver on-the-job training, but some are not paying the expected contributions towards training providers’ costs.

“Employers are required to contribute towards the cost of adult apprenticeships, and the funding rates paid to providers assume employers contribute at least half of the training costs, either in cash or ‘in kind’.

“However, evidence suggests that some employers do not pay the required contributions.”

The report references a survey, conducted in 2009, which found that 43 per cent of providers choose not to collect fees from employers.

“With full contributions from employers, government funding could deliver more or higher quality apprenticeships for the same cost,” the report states.

Amyas Morse, head of the NAO, said: “It [BIS] needs to target resources more effectively; confirm the training provided is in addition to what would have been provided without public support; and make sure that the funding system is informed by robust information on the cost of delivery.”

The unknown level of ‘dead-weight’

The value of adult apprenticeships is being exposed to significant dead-weight, according to the NAO.

The NAO says “optimistic” figures produced by the BIS assume all of the training delivered by apprenticeships would not have occurred without public support.

The criticism follows statistics by BIS, reported in March 2011, which estimate that adult apprenticeships deliver a return of roughly £28 for every £1 of public spending.

The NAO says the programme produces a return closer to £18 when considering all levels of an apprenticeship.

“The difference between our figures and those of the Department reflects the sensitivity of the calculations to the underlying assumptions, in particular our respective assessments of the available evidence on the potential wider impact of the training on the productivity of the workforce,” the report states.

The NAO says BIS has failed to assess the level of additionality (the extent to which public funding results in training that would “not otherwise have occurred) being delivered by the apprenticeship programme.

The report states: “The Department assumes that, for economic returns to apprenticeships, all public funding achieves additionality, but lacks data to support this; therefore any reduction in additionality would result in an equivalent reduction in the economic returns.”

The NAO says BIS has an evaluation in progress which will help them to measure the additionality of the apprenticeship programme, with results available in early 2012.

One in five adult apprenticeships lasted less than six months

A growing number of adult apprenticeships are being delivered in under half a year, the NAO has revealed.

The report says 34,600 apprenticeships were delivered by providers in less than six months in 2010/11, making up nearly a fifth of completions for learners aged 25 and above.

A further 6,200 ( three per cent of adult completions) were found to be less than three months long.

The NAO says the rapid expansion of the apprenticeship programme “presents risks that need to be managed.”

“In four of the top ten fastest-expanding subjects around a quarter or more apprentices completed in six months or less (2010/11),” the report states.

“In one of the fastest-growing subjects, IT and telecoms professionals, over two-thirds (68 per cent) completed in under six months.”

The SFA and NAS are currently investigating 87 providers thought to be delivering ‘short duration’ apprenticeships and have said they will be checking to see if providers are complying with their contractual obligations, and will close down provision if necessary.

“The growth in shorter-duration apprenticeships may reflect increasing take-up of frameworks which require less training, and growing numbers of over-25s, who may be allowed to complete more quickly owing to their prior experience,” the NAO report states.

The NAO report also reveals that the BIS hopes to publish revised data on the length of apprenticeships in February 2012.

The empowering role of apprenticeships

Despite a lot of media coverage of apprenticeships in the last year, not enough has been heard from the apprentices themselves. We know that the Government and employers invest in the apprenticeship programme and that they get a healthy return on their investment. Apprentices also make an investment so it is worth reflecting on the ‘return’ for them.

Last year we carried out a survey of 81 people from across the country, aged 17 to 61, who had been nominated for the Adult Learners’ Week Adult Apprentice of the Year Award, sponsored by Pearson. The results were incredible and show just how worthwhile the increased investment in apprenticeships is for all sorts of people at all stages of their lives.

 For many, the experience has truly transformed their lives: “Doing the apprenticeship has changed my life. I am much more focussed. I am doing a real job in a real workplace gaining the most brilliant experience.” Underlying this is the sense that it has given them a fresh start and has helped them prove to themselves and to others that they are not a failure. “I feel that as a middle-aged woman what I have achieved is remarkable. My journey has not finished – it has only just begun.”

 With FE Loans, the learner/apprentice will be the purchaser, will feel able to shop around, will look for the best offer. Will this be empowering?”

Even more than this, the impact reaches forward into future learning, personal development and family life.  “I am so sorted now, feeling much more positive about myself and my family are more relaxed around me and are proud of me.”

If they are that good then making the case for more investment must be easy and it certainly looks positive with the very welcome and large increase in Government investment. From 2013, those over the age of 24 will need to take out a loan for their apprenticeship and there is a lot of understandable concern about the impact this will have on fairness and equality (see NIACE Adults’ Learning extra January 2012) but perhaps too little thinking about the potential positives.

 Our survey of adult apprentices not only gave evidence of the benefits, it also taught us how important it is to listen to the learner experience. Our respondents had ideas about how to improve quality, how to advise potential apprentices, what worked for them and what might work better for others. In the best examples, learners felt empowered at work, at home and in their communities.

With FE Loans, the learner/apprentice will be the purchaser, will feel able to shop around, will look for the best offer. Will this be empowering?

Will people with the right advice and guidance, with better public information, be able to demand a better quality offer? Will this result in a more personalised learning experience, with curriculum and delivery designed to meet their needs? Will people demand a more blended offer, with more use of technology and distance learning? Any provider of training who can tap into this demand will surely be more successful, just like in any other market-place?

So, here at NIACE we are keen to do more work to capture the apprentice voice, to help empower learners to get more of what they need and to support people to get the best possible information, advice and guidance to be able to be informed customers. It will be fascinating to see if the introduction of FE Loans helps accelerate this.

The final words should go to an apprentice:  “If it wasn’t for my apprenticeship I would still be stuck in a rut with no direction to walk in. Now I have this qualification I feel a new person with limitless possibilities and it has given me back the drive to learn to further myself in my career. I owe my whole career down to one qualification – thank you!”

David Hughes is the CEO of the National Institute of Adult Continuing Education (NIACE)

 

FE Week’s Apprenticeship Week Supplement

 

Inside our supplement you will find comments from industry experts such as Lynne Sedgmore, executive director of the 157 Group, Graham Hoyle, chief executive of the Association of Employment and Learning Providers (AELP) and David Hughes, chief executive of the National Institute of Adult Continuing Education (NIACE). And that’s not all, we’ve produced a huge technical feature with analysis from today’s publication of the latest Statistical First Release (SFR) data.

So there’s plenty to get stuck into. Throughout next week, make sure you stay up to date with National Apprenticeships Week by following the hash tag #NAW2012 on Twitter or by following @feweek online.

Download a Hi Res version of the supplement: Click here (25mb)

Download a Low Res version of the supplement: Click here (4mb)

You can also read and comment on individual articles online:

Safeguarding the definition of apprenticeships ~ Graham Hoyle, CEO at AELP

How do we incentivise the employers? ~ Lynne Sedgemore, Executive Director at 157 Group

The empowering role of apprenticeships ~ David Hughes, CEO of NIACE

Apprenticeships are in need of innovation ~ Mike Lee, Director, Skills and Young People at Working Links

Apprenticeships: a little bit of advice ~ Peter Cobrin, National Education Director for www.notgoingtouni.co.uk

Innovative curriculum helps progression to apprenticeships ~ David Graily, CEO of NCFE

Interview with David Way ~ Chief Operating Officer of NAS

Interview with Ross Varnam ~ Autobody repair apprentice and WorldSkills silver medalist

FE Week’s Apprenticeship Week Event Calendar

FE Week’s analysis of the latest apprenticeship figures for England

Apprenticeship Week, get involved on twitter

Safeguarding the definition of apprenticeships

The debate around apprenticeships over the last few months, which has now prompted a Commons select committee inquiry, was originally sparked by FE Week’s coverage of ‘short-course’ apprenticeships and we know that the publication is able to talk knowledgably about the subject, even if we may not always agree with its opinions.

However I cannot extend the same compliment to some of the other comment which I have seen on the matter.

First and foremost some observers seem to hold a traditional and therefore inaccurate view of what an apprenticeship actually is.

That is why the Association of Employment and Learning Providers (AELP), which represents providers who deliver over 70 per cent of apprenticeships in England, is using its submission to the select committee to firstly secure a clear, universal definition of an apprenticeship.  We set out our proposed definition in our well-received position paper to ministers last autumn, namely:

“An apprenticeship is a competence based skill development programme, designed and endorsed by employers for their employees, which combines independently accredited work based learning, off-the-job training and relevant experience in the job.”

This definition implies an acceptance, as allowed since Modern Apprenticeships were introduced in 1994, that apprenticeships can be for employees of any age in response to employers’ needs although we fully understand current policy prioritising towards young people.

It means therefore that it is incorrect to simply think of apprenticeships as a means of job creation for young people.

Protecting the brand

We support the coalition government’s ambitions to see more apprentices complete at levels 3 and 4.

However, all levels of apprenticeships offer high quality training which brings extensive benefits to both the employer and the apprentice.

Whilst we would encourage progression to level 3 apprenticeships wherever possible, it must be recognised that in many occupations and sectors a level 2 apprenticeship is the most appropriate level of qualification, offering the right quality, skills, knowledge and benefits to the apprentices and their employers.

Opinion-formers and policymakers in their well-meaning attempts to defend the apprenticeship ‘brand’ would be in our view misguided if they sought to deny a valued qualification that employers ultimately own and protect.

This is not to say that employers have or should have free rein to call any type of workforce training an apprenticeship when public money is involved.

Proper apprenticeships should be subject to the same audit scrutiny, Ofsted inspection regimes and SASE compliance with the sector skills council playing an important role as custodians of standards.

This is very pertinent to the current pilot being proposed for the ‘Employer Ownership of Skills Development’ where apprenticeships may well feature in some of the employer bids.

Our select committee submission refers to previous AELP proposals on how apprenticeships should be funded by the state, employers and learners, bearing in mind that loans are on the horizon.

With the government announcement that apprenticeships for 16-18 year olds must last a full 12 months and the additional costs of Functional Skills to be added, it is unfortunate that the funding rate for this age group has been cut by 2per cent. Quality provision comes at a cost.

At a time when the government is trying to grow the number of young people starting apprenticeships, this rate cut will surely create a tension between increasing volumes and maintaining quality.

Role of the NAS

National Apprenticeship Week comes under the remit of the National Apprenticeship Service (NAS) and we support the marketing initiatives that the agency is undertaking to promote the programme to employers, particularly those to raise awareness among SMEs.

The National Careers Service may be coming on stream in April but AELP believes that NAS can play a particularly valuable role in schools, explaining to young people, their teachers and parents that apprenticeships offer a high quality vocational training that will suit many young people better than the traditional academic route after the age of 16.

With success rates at 74 per cent, and rising, our apprenticeships are something we should be proud of and celebrate.

Graham Hoyle is the CEO of the Association of Empoyment and Learning Providers (AELP)

Gordon Marsden MP questions top SFA and NAS departures

Gordon Marsden MP has sent a letter to the skills minister questioning the departures of Simon Waugh, chief executive of the National Apprenticeship Service (NAS) and Geoff Russell, chief executive of the Skills Funding Agency (SFA).

Mr Marsden, shadow minister for further education, skills and regional growth, has asked why the Department for Business, Innovation and Skills (BIS) isn’t “well underway” with finding their replacements.

“The information provided by BIS suggests Geoff Russell informed the Department of his desire to move on last August,” the letter states.

“If so, why was the Department not well underway with the process of appointing a successor before his departure was announced?

“As I’m sure you agree, at a time of change for the sector, not least with the introduction of loans for FE students on the immediate horizon, it is vital that his position is quickly filled.”

Further questions sent to John Hayes MP include the role that Mr Russell had in creating the Employer Investment Pilots, announced by David Cameron last November.

Mr Marsden has also asked if BIS if they will be changing the number or hierachy of staff at both the SFA and NAS.

The letter states: “In light of the programme of savings being implemented at NAS, is the Department considering any revision of the structure of senior positions in order to meet the required efficiency savings from BIS agencies?

What implications are there for ongoing work pressures for regional directors at NAS who are already under pressure from efficiency savings and who will be covering the day to day work of the Chief Executive while a successor is being appointed?”

Mr Marsden adds: “What guidelines will the Department put in place to ensure any future heads of the NAS remain responsible for both the quality and standard of Apprenticeships?”

The shadow FE minister has asked for a response from Mr Hayes as soon as possible.

(You can read the full letter here.)

FE Week mini-mascot (Edition 17)

Follow the adventures of FE Week’s biggest and smallest fan!

Mostly this week I have been reading a bathtime story”

And also you can follow our FE Week mini-mascot on Twitter @daniellinford

Young apprenticeships fall as adults nearly double

Adult apprenticeship starts have continued to accelerate in the first three months of 2012, while the number of starts aged 16 to 18 has dropped, new data has shown.

Provisional figures, published by the Data Service in the Statistical First Release (SFR) today, show that the number of new apprentices aged 25 and above has risen to 53,300 in the first quarter of 2011/12, compared to 27,600 in the same period last year (an increase of 93%).

Meanwhile the number of new apprentices aged 16 to 18 is shown to have dropped by three per cent in the same period.

The total number of new apprenticeships starts hit 457,200 in 2010/11, up 14,500 from provisional figures published in October last year.

Apprentices aged 25 and above rose to 182,100 last year, making up roughly 40 per cent of total starts.

In comparison the number of new apprentices aged 16 to 18 rose to 131,700 in 2010/11, a 13 per cent increase on the previous 12 months.

The SFR shows better movement in the number of new apprentices aged between 19 and 24, rising by 26 per cent to 143,400.

(Click here for FE Week’s apprenticeship anaylsis of the SFR statistics)

Christina Conroy OBE to retire as principal of RACC

Christina Conroy OBE has announced plans to retire from her position as principal and chief executive of Richmond Adult Community College (RACC).

Christina will relinquish her role as principal on April 1, 2012, before retiring formally in October 2012.

“I have been a teacher and senior manager in further education for over 27 years in Essex, Hertfordshire and London and it has been a great honour being the Principal of Richmond Adult Community College,” Christina said.

“Professionally, it has been an amazing experience but the time is right for me to take my retirement and move on and do new things.”

Christina will be working on two key national projects, related to e-learning and adult entrepreneurship, on behalf of RACC between April and October.

Louise Fluker, Chair of Governors said: “Christina has decided after more than 12 years of service at the College, to step down from her role as our Principal as she wishes to pursue new academic and business opportunities.

“Over the course of her leadership the College has successively been rated Grade 1 Outstanding and remained in excellent financial health.”

The college says they will appoint an acting principal from the start of April.

Cristina added: “I would like to take the opportunity of thanking Governors, staff, students and stakeholders for the excellent support they have given me over the years.

“I have really enjoyed working for the College and in the London Borough of Richmond upon Thames and I would like to wish Richmond Adult Community College well for the future as it goes from strength.”