1

Apprenticeships are good for business and are the strongest vocational learning brand.

The Apprenticeships programme is :• The main state-funded offer in our

demand-led system, responsive to employer demand rather than target driven

• High profile politically, with a specific reference in the Coalition Agreement and widespread awareness across business and education sectors

• An all age programme: 16-18 places are key to DfE offer of education and training for young people and contribute to raising the participation age and the NEET strategy

source: NESS 2009

The Apprenticeships brand is key to its ongoing success and recognition levels are very high: 91% of employers have heard of government-funded apprenticeships although many aren’t aware of the different levels on offer.

2

Apprenticeship Starts by Age

050,000

100,000150,000200,000

250,000300,000350,000400,000

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

2010

/11

Foreca

st

Adults

16-18

Apprenticeship numbers have grown over the last 8 years, but that growth masks a changing profile

•State funding for 25+ year olds was introduced in 2007/08 – now 18% of all starts are 25+

•Policy priority is to grow at Level 3, but recent growth is greater at Level 2

•Recent strong growth in service sectors, masks a smaller decline in construction, engineering and ‘traditional’

Sector Trends

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Growth by level

Level 2

Level3

0

50,000

100,000

150,000

200,000

250,000

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10

Ap

pre

nti

cesh

ip S

tart

sBus Admin/Law

Retail

Health/Pub. Services/Care

Engineering/Manufacturing

Construction

Data Source: Statistical First Release, FE Data Service

Total spend in 2002-03

£743m*

Total spend in 2009-10

£1,293m*

*Includes other work-based learning for 16-18 year olds. Source: LSC Annual Report and Accounts

3

In a demand-led system growth depends on the right information and “offer” for learners and businesses

• 2010 Skills Strategy based on principles of freedom, fairness and responsibility

• We placed Apprenticeships at the heart of the strategy, but also committed to: – Vocational qualifications that reflect

the changing needs of employers– Reducing reliance of some sectors on

migration– A Growth and Innovation Fund– Co-funding Level 2 training in SMEs– Protecting state funded training for

with basic skills and for young adults’ up to Level 3

– Simplifying the funding system and freeing providers from bureaucracy

• Backed by investment (in 2011-12 FY) of £3.9 billion in FE skills for post-19 learners. This includes £3.7 billion for over 3 million adult training places funded through the Skills Funding Agency

Key delivery roles:

• The Skills Funding Agency funds and regulates adult further education and skills training

• The National Apprenticeships Service develops relationships with business to increase apprenticeships

• The Apprenticeship Ambassadors Network brings together senior business leaders who promote the benefits of apprenticeships to businesses of all sizes

• UKCES, an employer-led organisation, to raise employer ambition and investment in skills

4

The Apprenticeship programme increasingly needs to accommodate different policy goals across Government

• Priorities for 16-18 education are changing: Professor Wolf’s recommendations call for us to rebalance the interests of learner, employer and training provider

• We need to balance the priority of delivering increased volumes with maintaining our commitment to supporting progression and increasing proportions of Advanced and Higher Level Apprenticeships

• We are working with DWP to increasing the numbers of NEETs and unemployed young people entering Apprenticeships, without diluting the Apprenticeships brand

• We want to invest our funding in the optimum levels and sectors to best drive growth, whilst also leaving the system the flexibility to respond to local and individual demand

5

Next Steps

• The 2011 Budget (23 March) announced a £180m package of funding for 50,000 additional adult Apprenticeships (19+) over the SR period. 40,000 places will provide capacity to support young unemployed people, in particular through progression from the DWP Work Experience programme; the remaining 10,000 will allow for an increase in Higher Apprenticeships, focused on SMEs.