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.
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