Reform is Urgently Needed to Reverse the Decline in Apprenticeship Starts
In principle, the Apprenticeship Levy should be a good thing. It could be the fuel that powers the construction industry towards a digitally enabled workforce and transformed productivity levels. It could help us encourage more bright young people into the industry from a wider range of backgrounds.
The reality is that it just isn’t working. Across all sectors the number of apprenticeship starts is lower than when the levy was introduced in April 2017. Employers also report that the levy has directed funds away from other training that may have been a better fit for their business.
To put this in perspective, in March 2019 there were 694 apprenticeship starts in construction, planning and the built environment, compared with 1,247 in 2018. This level of performance isn’t one that can be ignored. We’re two years in now and we can’t even comfort ourselves with the notion that things will get better once we are all used to the system.
What Problems Do We Need to Fix?
There are several ‘apprenticeship levy shaped roadblocks’ (to quote a Federation of Master Builders report).
First, the process of accessing levy funds is seen by many as too complex. The range of approved training courses is also too narrow and isn’t geared to support an industry in transformation towards new methods and digital technologies.
Making the full funding support available to all ages would also help us to reskill our existing workforce and support those seeking to make the transition from other industries.
We have an ageing construction workforce that is predominantly based around traditional methods and skills. Apprenticeships are potentially one of the most effective tools we have to encourage young people from diverse backgrounds into the sector and to change the skills profile. We have to find a way to make it work for everyone.
Delivering the Vision
Declining apprenticeship starts aren’t just an issue for construction employers. As a nation we have ambitious plans for house building and infrastructure. We don’t yet have the workforce to deliver this vision.
FMB chief executive Brian Berry also highlighted that: ‘The government is uniquely placed to drive the apprenticeship agenda, and if ministers want to achieve their target of three million apprenticeship starts by the end of next year, they must review apprenticeship policy, including the apprenticeship levy.’
Currently the DfE seems complacent, happy to quote year-on-year increases in total apprenticeship numbers without acknowledging the reality is that we still haven’t got back to where we were pre-levy. Maybe a cross-departmental focus might help highlight the urgent need for reform to support key industries like construction.
