In a new report, published yesterday (20 May), the CIPD and Youth Futures Foundation have shown that while most employers think apprenticeships should be used to help young people into their careers, most apprenticeships are now being used to train existing staff.
Despite 60% saying apprenticeships should go to young people, more than half (54%) admitted they had converted their existing training activity into apprenticeship programmes to claim back their allowance from the apprenticeship levy.
The Levy, introduced in 2017, requires companies with a wage bill of more than £3m to contribute 0.5% of that amount to a fund earmarked for apprenticeships.
If they do not then use that fund for training, the money is collected by the government as tax.
The overall number of apprenticeships has plummeted since the Levy was introduced, with 41% fewer apprenticeship starts for under-19s, and 36% fewer among 19-24 year-olds happening in the 2022/23 academic year compared to 2015/16.
The CIPD’s report has suggested an ‘Apprenticeship Guarantee’ for young people, where at least 50% of the Levy’s funds are ring-fenced for young peoples’ apprenticeships, and the remainder dedicated to other forms of accredited training.
Peter Cheese, CIPD chief executive, said: “The evidence in this report shows clearly that young people most need and benefit from apprenticeships, and that the erosion of this pathway has had a negative impact on social mobility for the most disadvantaged.
“The introduction of an Apprenticeship Guarantee would help reclaim apprenticeships primarily for young people and reverse the decline in opportunities for them.
“At the same time, a more flexible skills levy would enable organisations to invest much more effectively in wider workforce development. For example, to adapt to and optimise the use of AI and other technology, support green transition, as well tackle skills gaps and shortages more broadly.
“Increasingly, employers are looking to modular forms of training and the use of ‘micro-credentials’ to develop employees, approaches which can be more flexible, cheaper and more effective ways of developing existing staff than relying on apprenticeships.”
Brendan Perring, general manager at the IPIA, told Printweek that printers were certainly conscious of the need to bring in the next generation of print professionals.
“I get calls at least on a weekly basis from members asking how they can get started with apprenticeships,” he said.
“At current rates, there are simply not enough people coming into the bottom of the industry to support it as our demographic ages.”
The trouble is, Perring added, that there is a huge amount of “red tape” associated with getting government support for apprenticeships; and very few providers still exist that offer vocational print education.
“There are very few formal routes for people who want to pursue a technical career in print, and most larger businesses that regularly take on apprentices have developed an internal training mechanism.”
The CIPD’s ring-fenced approach would make sense, Perring added, as it would help tackle the skills gap at two sides: both at the bottom level, for younger staff, and for more experienced staff looking for a change, or progression within the company.
“It’s logical to have that split, where you’re encouraging young people into the sector, while giving room to that other 50% of people who show talent and want to progress,” he said.
“There has to be a mechanism within your organisation where you can access that pool of people who may be currently doing a manual or unskilled task, but they have shown they have potential, they work hard, and could be developed into other areas of the business.”
