Double the cash incentives so more young people do apprenticeships

Since apprenticeship reforms, providers have had to front up more of the costs, writes Jane Hickie

The pandemic has had a disproportionate impact on young people and their employment and learning opportunities.

Since the advent of the 2017 reforms, fewer young people have participated in apprenticeships.  

So the right balance of incentives and funding premiums are needed to encourage businesses in their decision-making process, while equally supporting social mobility. 

Before the apprenticeship reforms in 2017, 16-18 apprentices were fully funded and apprentices 19 onwards were co-funded at 50 per cent by the state.  

The government also ran an incentive scheme: Apprenticeship Grants England (AGE), where employers could apply for a £1,500 government for recruiting an apprentice aged 16-24.   

In 2016, the government also removed employer liability for class 1 national insurance contributions for apprentices. This is still available, but it has not been well advertised.  

When the apprenticeship reforms were introduced, funding rates between young people and adults were equalised and the AGE incentive scheme was replaced by a £1,000 “additional payment” incentive solely for 16-18 starts, paid to both the employer and the provider.  

This has meant that employers are less incentivised to take on younger apprentices, and providers have had to front up more costs.

And we can see it in the very worrying figures. 

In the last academic year, adult apprentices aged 25+ accounted for more than 50 per cent of all apprentice starts for the first time. Meanwhile, 16-18 apprentices accounted for just 20 per cent of all new starts.

The government could do three key things to “level up” apprenticeships. These would help to increase entry-level starts and the number of young participants, while providing crucial support for SMEs.


1.     Give cash incentives to employers 

The AGE scheme supported thousands of employers to take on young apprentices. The incentives made available through the Plan for Jobs have also been a fantastic success.  

More than 100,000 new jobs have been created so far, of which 76 per cent have been for 16-24-year-olds. This is significantly more than the starts on the much pricier Kickstart scheme.  

Cash incentives give employers flexibility to choose how they invest the grant, whether that’s an indirect wage subsidy or investment in infrastructure to support the apprentice.  

So we need a longer-term employer incentive scheme to build on the success of the Plan for Jobs.

However, after January 2022, this should be targeted at the 16-24 age group and maintained at £3,000 per apprentice.  

Apprenticeship job creation also means long-term sustainable employment, as over 90 per cent of apprentices are retained as staff.   

2.     Fund 16-18 apprenticeships from the 16-19 budget 

This would remove these apprenticeships from the scope of either co-investment or levy funding and support more employers to employ younger apprentices.

3.     Double the cash incentive for training providers 


After all, training providers are the government’s salesforce for apprenticeships. 

Training providers were previously able to access greater funding for 16-18 apprentices.

This was important, as the cost of finding, recruiting and supporting a young person in the workplace along with training and assessment is higher than supporting an adult already employed in the workplace.  

The government needs to enhance the incentives it currently offers to training providers to support young apprentices through a young apprentice funding premium.

Training providers were previously able to access greater funding for 16-18 apprentices

There is a £1,000 provider “additional payment” incentive for 16-18 apprentices. But this is not high enough to drive effective positive change. The current £1,000 training provider “additional payment” incentive should at least be doubled.

Funding premiums should properly reflect the additional investment required to provide high-quality and attractive work-based learning for young people.

With these changes, the government could show it’s walking the walk, and not just talking the talk, about boosting apprenticeships.

BTECs: MPs to probe effect of defunding level 3 courses on learners

MPs have launched an inquiry into the government’s decision to defund level 3 qualifications that overlap with T Levels. 

The All-Party Parliamentary Group for Youth Employment, chaired by Conservative MP James Daly, will spend three months exploring how the decision “will impact the choices available to young people and what that will mean for their employment prospects and outcomes”. 

Sector experts, young people and employers will give evidence, including at meetings on November 23 and 26. 

This comes after the Department for Education concluded its review of level 3 and below qualifications by announcing such courses would need to prove they give employers the skills they need to continue to be publicly funded. 

Ministers facing mounting pressure over BTECs

The DfE said at the time it expected applied general qualifications, such as BTECs, will become “rare” when a new system is phased in between 2023 and 2025. 

This new system will make T Levels, A-levels and apprenticeships the main options for post-16 qualifications. 

Ministers and officials are under mounting pressure over this decision, with a group of school, FE and apprenticeship organisations starting the Protect Student Choice campaign to ensure applied generals “continue to play a major role in the future qualifications landscape”. 

The campaign group is running a petition, calling on the government not to withdraw funding from BTECS, which has over 38,000 signatures at the time of writing. 

As part of the campaign, 118 MPs and Lords penned a letter to education secretary Nadhim Zahawi this month asking him to “recalibrate” his department’s plans for BTECs. 

MPs will look into whether T Levels will support learner and employer needs

The questions the APPG will attempt to answer include what impact the removal of funding will have, and will the government’s proposed ambition for T Levels, apprenticeships and A-levels support the needs of young people and employers in the future economy. 

btecs
James Daly

Written evidence submissions are being accepted and should be emailed to josh@youthemployment.org.uk by 5pm on December 3, 2021. 

The inquiry will run from this month to January 2022, when a minister will be invited to give evidence and receive the APPG’s report. 

FE’s educational ethos is being overshadowed by market logic

The vocabulary of employability and finance is taking over, writes Zahid Naz

In recent years there has been a shift away from the social values of education towards a form of economic rationality with two main concerns.

This can be seen in the strategic direction of policy initiatives, such as the 2019 education inspection framework (EIF) and the 2021 FE white paper.  

First, the educational ethos – which fosters an orientation to curiosity – seems to have been overshadowed by the demands of the market. 

Second, little attention has been paid to the socio-economic constraints within which FE colleges operate. 

Framed within this economic rationality, the role of further education providers has become inextricably linked to being a solution to the skills deficit. This is, of course, an absolutely vital part of FE’s role.

But as a result of this hyper focus, the curriculum “intent” of FE providers is being constructed around the vocabulary of employability and finance.

Yet education also encourages the development of students’ emancipatory, political and aesthetic potential. We need to focus on teaching and learning practices from the standpoint of pedagogical, rather than marketised, logic. 

The overemphasis on a model of education dedicated to the economy works to dwarf the significance of abstract and powerful knowledge in humanities and social sciences.

The ‘intent’ of FE providers is being constructed around the vocabulary of employability and finance

It also undermines the core education values of intellectual independence, imagination and selflessness. 

The underlying rationale for this perspective may well lie in an assumption about FE students’ intellectual ability. It could also reflect assumptions about their previous grades, which could reflect a range of socio-economic factors rather than act as real markers of “intelligence”.

So, it would be unreasonable to assume these learners are not developmentally ready to process “difficult theoretical knowledge” and therefore need only be employment-ready.

Instead, we could combine technical and academic knowledge, which could make the latter more accessible for FE students.

The inclusion of “powerful knowledge”, through subjects such as history, politics and philosophy, can add value to vocational curricula. However, the Skills for Jobs white paper makes no mention of this.

For example,  it says the key focus is on economic growth and jobs, which will be delivered by “putting employers at the heart of the system so that education and training leads to jobs that can improve productivity and fill the skills gap”.

But an approach that valued powerful knowledge would not only enhance FE learners’ ability to meet civic obligations to the public and the market, but also make FE qualifications a better progression route into higher education. 

We know from figures on access to university released by the government last week that the entry gap between disadvantaged and more affluent students is now the widest it has been in 15 years.

Another concern I have is how the education inspection framework, which mainly draws on research from school settings, puts FE at a considerable disadvantage. 

FE is a complex environment, and the demographics of FE colleges are different from schools. FE provides its learners with a chance to continue their education at whatever level is best suited to them.

We know from evidence that the personal skills wanted by employers and education institutions are social competences often shaped through previous experiences.

This includes experiences informed by social class and gender. Students will display these competences to different degrees.

It’s for this reason that differentiated assessment tools should be applied to colleges, rather than a universal inspection framework based on a one-size-fits-all perspective. 

The market-based rationality is also embedded in the EIF, which, like the white paper, links the role of FE to employability skills. It also functions to obscure the significance of powerful socio-political knowledge as well as vitally important traditional educational principles.

For example, the key focus is on the attainment of “qualifications, skills and behaviours that enable students to find employment”. The onus is on a college to ensure that learners recognise that their skills are transferable.

Overall, a reform in FE policymaking that puts pedagogy, not just market needs, at the forefront of FE curricula is long overdue.

Let’s have a collective post-18 system for HE and FE

The lifelong loan entitlement will fail if policy doesn’t remove other barriers for students, writes Tim Blackman

Colleges Week marks the critical role colleges play in education and training, bridging skills gaps and equipping students of all ages to thrive in the workforce. 

The Open University (OU) has a long history of links with the further education sector, working closely with individual colleges and the Association of Colleges to widen access to opportunity.  

At the Conservative Party Conference recently there was a strong political and policy focus on skills, lifelong learning and broadening educational pathways. 

This makes it an exciting as well as potentially challenging time for post-18 education.  

But it is essential that we think about a collective post-18 system. 

We must use this opportunity to be bold and ambitious, so that our frameworks enable flexible study without the often false distinctions between ‘academic’ and ‘technical’ paths.  

The much-heralded lifelong loan entitlement in England is a key milestone on that journey but it will fail if it does not embrace incentives that overcome the many financial and practical barriers that adult learners face.   

Critical to the lifelong loan entitlement is that everyone has access to the same funding entitlement regardless of how they choose to study. 

That could be part-time, full-time or through modular study, face-to-face or distance learning, and higher technical qualification or traditional higher education qualifications.  

Another area of uncertainty is around the fee caps and it is not yet clear how these will be set for modular study. Currently, there are two fee caps – one which applies to students registered on full-time courses and one which applies to students registered on part-time courses.

Under current legislation, there is no link between a part-time student’s study intensity and the fee cap which applies to them – it is set at 75 per cent of the full-time fee cap, no matter what. 

This is a blocker to flexibility – many OU students want to be able to flex their study intensity over their qualification so they can fit their studies around their working and family lives.

We are calling for a single credit-based tuition fee cap linked to study intensity – where the fee cap applicable to a student would be determined based on how many credits they were actually studying rather than their mode of study.

Maintenance support should be extended to cover modular study

Maintenance support should also be extended to cover modular study, higher technical qualifications and distance learning rather than just full-time students and part-time degree students as it is at present.

At the Open University, we are well placed to work together with colleges, to help learners, businesses and public services succeed in what will be very challenging times.   

We currently partner with 30 colleges across the four nations, validating their higher education programmes, sharing course content and expertise, and helping to expand their apprenticeships offer.  

In England, we have worked with Milton Keynes College and the South Central Institute of Technology to offer new progression routes to engineering and computing degrees.  

Learners will study at the college for two years, qualifying for a Higher National Diploma, and then progress to a third year at the OU to achieve a BA in engineering or computing honours.   

This is made possible through a precedent award, which allows students to bypass the review that standard applicants undergo, expediting their application for the undergraduate degree.  

Excitingly, our first students on this programme began their studies with us this month. 

Such progression agreements are likely to become more common, helping those that want to qualify as quickly as possible to enter the workplace and earn.

The HND programmes at MKC cost £3,625 per annum – with the OU topping up £6,336 – making them affordable and an attractive option for many. 

In Scotland, we’ve been working with 15 regional colleges to support transition between college and university.

These partnerships promote progression routes and credit transfer opportunities for students who wish to go on to degree study with the OU, again at lower cost while studying at the right pace for them. 

The Open University in Wales has partnered with Cardiff and the Vale College to support 68 of its students to progress into higher education with monthly support interventions to help remove real and perceived barriers.  

This is a model which can be adapted to work with other college partners. 

Finally, in Northern Ireland the OU has been working with Belfast Metropolitan College to address the shortage of cyber security skills through a higher-level apprenticeship, leading to a foundation degree in cyber security.  

This also allows students to progress to the final stage of the OU computing and IT degree. 

We have a long history of being innovative and responsive to the needs of our learners, industry and public services.

Our partnership with the further education sector, as evidenced through some of these examples, demonstrates what is possible in challenging times.

FE staff offered scholarships to explore gaps in sector’s research

FE staff will be funded to take a Masters or PhD by the Association of Colleges and NCFE, under a new scheme to fill research gaps in the sector.

Research Further will fund ten scholarships in the first year of a three-year scheme, focused on areas such as adult education and tackling inequalities.

The association’s senior policy manager for research and evidence Julia Belgutay said the FE sector has “historically had a limited amount of research to tap into when we consider reports, data and general knowledge around FE and skills”.

She said the “ground-breaking” collaboration between AoC and NCFE will “support practitioners from the chalkface, those who know the sector best, in helping fill this gap and ultimately improve practice and the sector as a whole”.

The AoC has also announced the launch of a new research unit to “coordinate commission and utilise high quality research to support informed post-16 teaching practice and policy development at scale”.

Both announcements come during Colleges Week, an annual event intended to celebrate the FE sector which this year is taking place between October 18 and 22.

Proposals to research digital and adult education particularly welcome

Research Further will fully fund tuition fees, with commitments being made annually, though the AoC could not say how much will funding the scheme will have in total.

While there are no specification on what scholars must focus on, proposals to research areas like digital, what works in specific subjects or with specific cohorts, adult education and tackling inequalities will be particularly welcomed.

Proposals should also demonstrate there is a gap in existing evidence for the area the scholar wants to look into.

Applicants should have contacted the university at which they would like to study, though they can be assisted to identify the most appropriate one.

Existing Masters or PhD students can also apply, and part-time and full-time projects will be considered.

The scholars’ work will be disseminated through a webinar series. New findings about pedagogy or policy will be shared through think pieces, reports, articles, and blogs.

Project will ‘power impact-focused research’

research
David Gallagher

NCFE chief executive David Gallagher is seeking “high quality data” which can “identify gaps” and allow the sector to “collaborate to tackle the changes which are needed within the education eco-system”.

Research Further will “power impact-focused research that will drive excellence and innovation in FE and make the greatest possible positive difference to learners’ lives,” he said.

The scheme is being supported by an advisory board made up of representatives from Ofsted, education technology company Jisc, Gatsby Charitable Foundation, the government, college leaders, research practitioners and the four nations of the UK. The precise membership is yet to be confirmed.

The board will advise on research themes and which applications will be funded.

This is not the first proposal supporting extra research in the FE sector: the Social Mobility Commission recommended in January 2020 the government spend £20 million on a research centre to explore “what works” in the sector and where extra investment is needed.

Applications for AoC-NCFE’s scheme are now open and close on 19 November. Applicants must work for an AoC member college and provide confirmation from their senior managers they will be allowed to spend at least one day a week on their course.

The application form is available from: https://www.aoc.co.uk/research-further

Make climate education compulsory and give us £1.5bn to build sustainable campuses, colleges tell government

College leaders have warned that the government’s net zero target will fail unless all courses for 16- to 18-year-olds are changed to include compulsory modules on climate change.

They also want an additional £1.5 billion capital investment in the next three years to sustainably transform their estates and invest in technology required to train for green jobs.

Their demands have been made in a letter signed by 150 college bosses to prime minister Boris Johnson and education secretary Nadhim Zahawi. It comes less than two weeks before world leaders meet in Glasgow to discuss how to reduce the effects of climate change at the COP26 summit.

The government published its Net Zero Strategy on Tuesday, which details how ministers plan to reduce greenhouse gas emissions to reach an aim of net zero by 2050.

Some colleges have made their own commitments to become net zero by 2030 but there is currently no sector-wide target that all colleges have signed up to.

Ministers are also aiming to “support up to 440,000 jobs across net zero industries in 2030” and say in this week’s strategy that colleges will be “key” to this goal.

College leaders believe the net zero ambition is “likely to fail” without making education on climate change and sustainability part of all study programme courses.

A curriculum audit from their membership body, the Association of Colleges, has found that less than 1 per cent of post-16 students are currently on a course with broad coverage of climate education.

The college leaders say the Department for Education and Ofqual should urgently work with stakeholders like awarding bodies to review all qualification specifications and ensure that they describe how education for sustainable development (ESD) is addressed.

AoC chief executive David Hughes said: “The government’s plans for the transition to net-zero simply will not work without aligning education policy with climate and sustainability priorities – that includes embedding climate modules in all study courses.

“College leaders and students have been crystal clear this is something they want and is necessary to meet the emerging skills needs of a greener economy.”

Colleges are also calling on the government to establish national centres of excellence in low carbon skills.

These would be hubs of experts in colleges which “could enable collaboration and sharing of best practice across the sector, with an easily accessible and well-known point for employers and people to engage with”.

Additionally, ministers should “urgently” fast-track the lifelong loan entitlement for training in priority green sectors.

The entitlement is currently set to launch in 2025 and will allow people to access funding for four years of study between levels 4 and 6, either in full years or as modules throughout their life.

One hundred and forty universities, all part of Universities UK, committed yesterday to cut their emissions by at least 78 per cent by 2035 compared to 1990 levels. They have committed to net zero by 2050. Both targets are identical to those set by the government for the whole economy.

Neither the college leaders’ letter or the AoC’s ‘green college commitment’ report commit to a hard target for when all college campuses will become net zero.

But some have committed to doing so by 2030.

Gloucestershire College is one signed up to the target. It is planning to undergo a £4.8 million energy “retrofit”, which is being partly funded by a £2.8 million grant secured through the Public Sector Decarbonisation Scheme.

The project will involve installing ground source heat pumps, solar panels for the college to generate its own renewable energy, followed by battery storage and smart energy controls.

Matthew Burgess, Gloucestershire College principal, said it currently takes the equivalent of 13 million kettles being boiled to run his campus every single day, so becoming carbon-zero is the “biggest and most important goal we can have”.

Other colleges committed to becoming net zero by 2030 include Craven College and Harrogate College – both located in North Yorkshire.

Colleges want a £1.5 billion injection in the next three years to develop sustainable campuses. This would be in addition to the £1.5 billion already committed by this government over this parliament for college capital projects.

The AoC estimates that 237 English colleges hold 8.5 million square metres, which they say “presents a significant opportunity for [net zero] impact”.

A DfE spokesperson said: “As we build back greener from the pandemic, we are committed to supporting people to get the green skills they’ll need for the careers of tomorrow.

“From skills bootcamps to apprenticeships, T Levels and traineeships, our programmes will create the talent businesses need in key sectors and help people at all levels to get the skills they will need for the green jobs of the future.”

Presenting a curriculum that works for every learner, whoever they are or whatever they want to be

It’s that time of the year when tutors and teachers are extra busy showcasing course options to prospective students. With options evenings or open days already in the diary, helping learners choose qualifications that suit their learning style and needs, can be tricky. Which is why Pearson has launched a free BTEC Options tool, which will help you showcase the specific BTEC courses your centre offers.

It’s never been easier for current and prospective learners to explore how a BTEC qualification can open doors to university, an apprenticeship, or into the world of work.

BTECs are important qualifications for preparing young people and adults with the knowledge and skills needed for the jobs of the future. Particularly in these times of economic flux and uncertainty. BTEC qualifications give learners a balance of the skills and knowledge they need to progress into the careers they want and by teaching BTEC, colleges can create a broad, balanced and diverse curriculum in their local community for all learners.

Career-focused education is also a powerful driver of social mobility that benefits employers, our economy and our communities. The jobs of the future will require uniquely human skills.

Studying a BTEC can help learners of all ages apply their study in real-life scenarios, ensuring they are uniquely prepared with a range of entrepreneurial and employability skills. Those skills enable them to flourish in our competitive world of rapid technological change, and to enjoy a career fuelled by passion and purpose.

The new BTEC Options tool is specifically designed to help you talk to students and parents about their next steps.  The tool is easy to use, engaging and interactive. What’s more, it allows you to focus solely on the BTEC subjects offered by your centre, offering a wealth of customisable information that will help you recruit and retain learners on their journey to success.

Students and parents can access:

  • A tailored online webpage that shows the BTEC courses your centre offers
  • An interactive careers quiz
  • Subject-specific information
  • Employability skills students will develop on the course
  • A range of career options after studying BTEC
  • Stories from BTEC students and employers in all subject areas
  • A unique URL so that they can browse in their own time.

If you have specific questions about BTEC or need further help or support for Options 2021 you can also contact Pearson on Twitter at @TeachBTEC with your questions, and they’ll get straight back to you.

Explore what a BTEC can do for you and your students at btecworks.com

Universal Credit training flexibility extended by six months

The flexibility allowing Universal Credit claimants to undertake training for up to 16 weeks has been extended, the employment minister has announced.

Speaking at the Learning and Work Institute Youth Employment and Skills Summit 2021 today, employment minister Mims Davies announced to delegates the flexibility will now last until the end of April 2022.

“It means that UC claimants are now in an even better position to access sector specific training as part of the Department for Education’s Lifetime Skills Guarantee and the skills bootcamp initiatives,” she said.

The flexibility, originally announced as a six-month pilot in March 2021, increased the amount of time claimants could study full-time, work-focused courses will still receiving benefits from eight weeks to 12 weeks.

Mims Davies

This went up to 16 weeks if the claimant was on a skills bootcamp – which train adults aged 19 and over in fields such as digital, construction and green skills.

“It allows people across Great Britain to take part in work related training to get them those key skills and be ready with them for what employers really value and need,” Davies added.

This comes after the government’s Kickstart scheme, funding jobs for 16- to 24-year-olds on Universal Credit, was extended from December until March 2022.

The scheme of £3,000 incentive payments for employers to take on new apprentices were also extended from September to the end of January.

The eight-week Universal Credit rule has been criticised by the FE and skills sector, with the Association of Colleges publishing a report in June saying it meant claimants are “prevented from developing skills that would allow them to get into better-quality, more stable, better paid employment over the longer term”.

The latest DWP data reveals 5.8 million people were receiving Universal Credit in September 2021.

Give every prisoner in-cell access to the internet, charity tells chancellor

The chancellor’s spending review should include a “major investment” so that every prisoner has access to a digital device and the internet in their cell, according to the Prisoners’ Education Trust.

Rishi Sunak, who will deliver his spending review next week, has been called on by the charity for the investment after the Covid-19 lockdown exposed how prisons are “stuck in the digital dark ages”.

The Centre for Social Justice published a report in January and found that only 18 out of the 117 prisons in England and Wales have the cabling or hardware required to support broadband in cells.

And when the pandemic struck, face-to-face learning was replaced by worksheets posted under doors which were deemed unhelpful to more than half of those who received them, according to a survey published by the HM Inspectorate of Prisons in February.

Prisoners were kept in their cells for 23 hours a day during the 18-month prison lockdown.

The Prisoners’ Education Trust believes digital devices and “secure, limited access” to the internet in every cell would allow prisoners to use their time to “access educational materials, helping them to ‘level up’ and better prepare for digital life on release”.

The charity said it could not put an estimated figure on how much funding would be needed exactly, but it would be over £100 million.

This year’s Centre for Social Justice report noted that the Ministry of Justice estimates that the cost of installing the hardware necessary to support broadband throughout the country’s prison estate would be in the region of £100 million.

Devices for each prisoner are estimated to then cost around £207 per prisoner, according to think tank Reform. Considering there are around 79,000 prisoners in the country, the devices alone would cost over £16 million.

Then there would also be the cost of any necessary educational content plus the cost of installing the devices, training for staff, along with ongoing running costs.

Jon Collins, chief executive of the Prisoners’ Education Trust said: “Everyone in prison, wherever they are in the country and whatever their background, should have access to education. Digital technology can help to make this happen.

“It is possible to provide safe, secure intranet and internet access to people in prison and in-cell devices would open up a world of educational opportunities. Without this, the digital divide will become a chasm, with prison leavers re-entering society ill-equipped to cope in a digital world. It is time prisons move out of the digital dark ages.”

A prison service spokesperson from the Ministry of Justice said: “We’ve kept education running throughout the pandemic with digital technology and in-cell learning.

“Education is key to reducing reoffending and we are restarting face-to-face learning where it is safe to do so.”

The spending review will take place on October 27.