Views on Policy Issues - Engineering Apprenticeships in England

What do you think?

Semta represents the view of our employers across government and the media. If you are an employer in the science, engineering, or manufacturing technology sectors, we welcome your views at policy@semta.org.uk

The issue

Apprenticeships are a key activity to improve the skills of the UK, according to the Leitch Review. Lord Leitch called for a doubling of apprentices in training in the UK by 2020. There is a Comprehensive Spending Review / Public Service Agreement target of increasing the number of successful apprenticeship completions from 98,000 in 2005-2006 to 130,000 in 2011.
Demographic changes in the population of young people mean that future apprenticeship growth will need to go beyond the traditional focus on 16-18 year olds. Following Semta adult apprenticeship pilots, funding is now available for people over the age of 25 at the same rate as for those aged 19-24.
The government is proposing significant reform of the apprenticeship system, with the introduction of a National Apprenticeships Service and control of the certification of frameworks moving away from Sector Skills Councils. Employers are to be encouraged to develop frameworks in conjunction with SSCs using a “bank” of qualifications approved by the relevant Sector Skills Council.
From 2013, every young person will be guaranteed an apprenticeship place if they are able to meet the entry criteria. Local Authorities will have a duty of care to ensure this entitlement is met, working with the new National Apprenticeship Service. A new online Apprentice Matching Service will enable individuals and apprentice providers (employers, training providers, colleges, etc) to post vacancies and apply for opportunities.
The economic downturn could have a significant effect on apprentice recruitment – both of young people and adults.
The proposed changes to national vocational qualifications could seriously compromise apprenticeships for young people, by dismantling the NVQ structure and ‘core options’ approach. If NVQs are extensively unitised there will be no commonality between programmes and the apprenticeship will lose ‘portability’.

Semta Employers' View

The value of apprenticeships lies in its close links with the employers and the workplace. Increasing the number of apprenticeships to meet the Leitch targets will need careful management to ensure that quality is not sacrificed for quantity. Apprentices must be able to fulfil all the requirements in terms of skills and knowledge deemed necessary by their employers. It is important that in the race to increase the numbers that sub-standard programmes are not developed for other purposes, by simply being “re-branded” as apprenticeship. Successful expansion of apprenticeships will require a three-fold approach encouraging more employers to offer apprenticeships (through better funding and promotion), promoting apprenticeships to young people (through schools, colleges, careers advisers, etc), and enabling more adults already in the workforce to access the frameworks (through employer engagement and funding).
While a National Apprenticeship Service may be welcomed by sectors currently lacking an infrastructure and history of apprenticeship, funding for it must not divert money from the established provision. The engineering sector already has a robust delivery structure for the recruitment and training of apprentices, and this must continue without interference.
While employers welcome the concept of developing their own frameworks, they will need to do this in conjunction with SSCs .This will ensure that standards are maintained and that employers can have confidence that post apprenticeship, apprentices will have the skills that are needed.
The proposed changes to qualifications taking place under the Qualifications and Credit Framework will have a profound negative impact on apprenticeships, as National Vocational Qualifications (NVQs) are being effectively dismantled and extensively unitised. This approach may benefit adults, who already have some prior learning but for young people, (who lack previous experience) it is essential that they cover all of the units in the complete NVQ. Similarly, there is concern that vocational education qualifications (Technical Certificates), such as BTEC Nationals and City & Guilds, are being sidelined for use with young people, in favour of the new Diplomas (which do not count towards an apprenticeship, although we are hopeful that many students who take a Diploma will be encouraged to progress to an apprenticeship programme at the next level).
Employers continue to be concerned about the appropriateness and quality of the careers information, advice and guidance service for young people, particularly with regard to guidance given about the alternatives to the ‘academic route’. Too often, the brighter young people are simply directed into further full-time academic education, and are not informed about, or encouraged to consider alternatives.
Employers are very concerned that an apprenticeship guarantee might result in young people spending a great deal of time on programmes that have no employer links because there is not sufficient employer demand for apprentices. It is particularly concerning that the apprenticeship guarantee is being launched at the same time as the country is tipping over into recession and apprentice demand may well drop significantly.
Apprentices in the workplace require appropriate supervision and management, as well as meaningful employment which relates to their off-the-job studies, which cannot always be guaranteed within a specific geographical area.
The Apprentice Matching Service is broadly welcomed, but there is some concern that the government does not use management data from this system to identify firms who do not wish to take on apprentices.

What is Semta doing?

Semta develops the content of Engineering Apprenticeship frameworks across the UK through its employer consultation groups, ensuring that the content of the programmes remains relevant to employer needs.
Semta is planning a significant increase in Adult Apprenticeship activity to meet the Leitch targets. This will involve work with training providers and large employers to ensure the right people currently in the workforce are identified, and that they are properly supported through the components of the apprenticeship. We are expecting significant amount of growth in Adult Apprenticeships over the next few years, although the economic downturn may undermine this. Employers may prefer to recruit young people on a trainee salary, with the training fully funded, to continuing to pay a skilled rate for an adult going through the adult programme which is only part funded.
We lobby against measures which we believe may undermine or compromise the quality of our apprenticeship programmes.
We have developed a range of apprenticeship programmes outside the post 16 Apprenticeship / Advanced Apprenticeship scheme, including the Young Apprenticeship (for 14-16 year olds still at school) and the Higher Apprenticeship (incorporating a Foundation Degree or HND, plus other qualifications at degree-level).

What else needs to be done?

The government must promote apprenticeships as a valid high quality alternative route for high achieving young people.
The government must allow Sector Skills Councils to retain full control of their frameworks, where they can demonstrate sector support to do so.
During the downturn, the government should consider increasing the adult apprenticeship rate to make them fully funded, thereby ensuring employers can afford to keep adults in the workplace and improve their skills, who they might otherwise make redundant.
The government should consider increasing the availability of programme-led funding from 2011 to prepare for the recovery of the sector after recession. Employers and providers feel that this should not happen earlier as they doubt the availability of work-based placements until 2011.
The government should consider providing a subsidy to employers to enable them to retain apprentices on programme at risk from redundancy during the downturn, to cover part or all of the apprentice’s wages for a set period of time.
Careers advisers need to promote apprenticeships to the right young people, those with the interest and aptitude to succeed.
Apprenticeships must not be forced to merge with other 14 to 19 routes or denied funding as long as they have been developed in conjunction with and the support of employers – for example, the Young Apprenticeship is currently at serious risk in the changes to 14-19 education, and the Higher Apprenticeship in Engineering is struggling for financial support in England due to its inclusion of degree-level study.

Evidence and facts

Engineering has a long-standing and well-respected set of apprenticeship frameworks, which are widely regarded as “gold standard” in terms of content and delivery. Other sector frameworks may not be so well developed or long-established.
In England, engineering apprentices accounted for 16.3% of all advanced apprentices in training during 2006-07, and 5.6% of Level 2 Apprentices. [1]
5,841 advanced apprentices in engineering began their courses in 2006-07, and 5,732 Level 2 Engineering apprentices started. [2]
Engineering is unusual in the high proportion of its apprentices who are in training on Advanced Level programmes – 67% compared to 40% of apprentices in training across all sectors.
The overall trend in engineering apprenticeship recruitment is growing steadily, with no significant falls in recent years.
Engineering apprenticeships take on average eighteen months to complete their training, while Advanced Apprenticeships take between three and four years. Apprenticeships at all levels include a Technical Certificate (usually delivered off-the-job in a training provider or college that provides the underpinning theoretical knowledge), a relevant NVQ, Key Skills, and an Employment Rights and Responsibilities programme. The Advanced Apprenticeship at level 3 also contains Performing Engineering Operations NVQ level 2 which is regarded by employers to provide essential health and safety and basic engineering skills necessary before entering the workplace.
Funding for engineering Advanced Apprenticeships can reach £15,400 depending on the programme which the apprentice is studying, but this funding falls significantly if the apprentice is over the age of 19 at the start of the programme. Adult Apprenticeships (i.e. those over the age of 25) now get the same funding rate as 19+year olds. This funding level has been hard fought and has only recently been introduced.
Semta estimates that an average Advanced Apprentice will cost their employer £50,000+ throughout their time on the programme, in training costs, salaries, and supervision. This cost is gradually offset by the apprentice’s increasing productivity.
Engineering is fortunate in its diversity of apprenticeship providers, which include Colleges, Employers, and Group Training Associations.
Training an Advanced Apprentice in engineering is relatively expensive compared to other sectors but this investment is paid back within three years on average. Apprentice employers also benefit from lower turnover, fewer skills gaps, and greater innovation. [3]

More information

House of Lords Select Committee on Economic Affairs 5th Report of Session 2006-07 on “Apprenticeship: a key route to skill – Volume I: Report”. Volume 2 contains all the evidence presented to the Committee. Published 20 July 2007.

Draft Apprenticeships Bill and Semta’s response

Draft Apprenticeships Bill Scrutiny by Select Committee

Apprenticeships, Skills, Children and Learning Bill

Semta frameworks page

Download this Policy View as a pdf here.

Back to Views on Policy Issues

Sources

[1] LSC Report 4 CUMULATIVE AVERAGE IN LEARNING AUG 2006 - JULY 2007

[2] LSC Report 1 CUMULATIVE STARTS BY GENDER AUG 2006 - JULY 2007

[3] The Net Benefit to Employer Investment in Apprenticeship Training, Warwick Institute for Employment Research, Nov 2008

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