Weekly Newsletter 05.12.2024

From Optimism to Clarity: What’s Next for Apprenticeships?

Last week’s Federation of Awarding Bodies (FAB) conference left me feeling cautiously optimistic—something I didn’t expect going in. Charlotte Bosworth (Innovate Awarding), David Gallagher (NCFE), David Hughes (AoC), Ben Rowland (AELP), and Rob Nitsch (FAB) all spoke of encouraging conversations with new ministers following Labour’s election win. It’s clear there’s potential for real progress, but like many in the sector, I’m still left with big questions about how these policies will actually play out for those of us delivering them on the ground.

Some key updates from the week:

1. Apprenticeship Facts & Figures:

   • Starts are up 0.7%, achievements up 9.8%, but participation is down 2.1%.

   • Under 19s make up 23.2% of starts.

2. Get Britain Working White Paper:

   • £240m in reforms with a focus on joining up skills, health, and employment.

   • “Youth Guarantee Trailblazers” led by metro mayors will launch in 2025.

   • An ambitious goal: 2m more people in work by reaching 80% employment.

We know Skills England is on its way, along with foundation and shorter-duration apprenticeships, and a rebranded Skills and Growth Levy. But we don’t yet know how Skills England will operate, what shorter apprenticeships will actually involve, or how much funding will shift away from existing apprenticeship programs.

Like many of you, I’m eager for more detail. While I share the optimism I heard at the conference, those of us responsible for delivering these changes need clarity—and soon—so we can make the most of the opportunities ahead.

DEFENCE INDUSTRY NEWS

BAE Systems to Create 2,400 Early Career Roles in 2025

BAE Systems plans a significant investment in 2025, committing £1 billion to education and skills development, thereby reinforcing its position as a leader in the UK defence industry. This initiative involves recruiting over 2,400 new early-career roles (a record intake), including nearly 1,300 apprentices and over 1,100 graduates and undergraduates. These opportunities span various fields, such as engineering, cybersecurity, software development, and project management, supporting high-tech defence projects like the Global Combat Air Program.

The company's £230 million investment for 2025 will bolster apprenticeships, graduate training, and employee upskilling while expanding education outreach initiatives. A new skills academy in Glasgow complements existing ones in Barrow and Samlesbury, aiding in workforce development. This strategy underscores BAE Systems' commitment to enhancing the UK’s industrial skills base and cultivating a diverse workforce, with 30% of new apprentices being female and significant representation from ethnic minority backgrounds among graduates.

Charles Woodburn, Chief Executive of BAE Systems, emphasises the critical importance of investing in the workforce's skill and ingenuity, inviting new applicants to join exciting, high-tech career paths. John Healey, UK Secretary of State for Defence, acknowledges BAE's pivotal role in national security and economic growth, encouraging others to view defence as an engine for job creation and stability. This strategic investment aims to strengthen the UK's defence sector, fostering national security and economic development."

SKILLS DEVELOPMENT STRATEGY

Apprenticeship UCAS System Needed to Solve Skills Crisis

A UCAS-style system, proposed for apprenticeships, is vital to addressing the UK's skills crisis, particularly in construction, where the workforce is rapidly declining. The current approach lacks cohesion and accessibility, deterring potential apprentices and employers. A streamlined platform akin to UCAS, dubbed the Vocational Courses Admission Service (VCAS), could centralise applications and bolster apprenticeship credibility, facilitating easier navigation and ensuring comprehensive training plans.

Moreover, a shift in how apprenticeship funding operates is essential. With £3.3 billion in unutilised levy funds from 2019 to 2022, redirecting these towards government loans could cover travel, equipment, and uniform costs for apprentices. This financial restructuring would allow both businesses and apprentices to leverage the levy, mirroring student finance systems. Consequently, this would make apprenticeships more appealing to young people, addressing the noticeable lack of interest in construction careers.

Skills England has the potential to drive this necessary reform. Bold execution and a transformative VCAS system could revive the apprenticeship landscape, ensuring it is a credible and attractive alternative to university education. These strategic changes would not only bridge the skills gap but also encourage a new generation to engage in rewarding construction careers, thereby securing the future of the industry.

APPRENTICESHIP NEWS

Employers' Role in Supporting Apprentice Mental Health and Training

Apprentices face mental health challenges due to confusion about off-the-job (OTJ) training during work hours, a key obstacle in achieving government targets, according to recent research. The study by OneFile, surveying 1,000 training providers, 90 employers, and 195 apprentices, highlights OTJ training discrepancies as a barrier to the 67% achievement rate target by 2025, with the current rate at 54% for 2022/23. The lack of time allocated for OTJ training increases stress and anxiety levels among apprentices, with many feeling pressured by the demands of both job and college requirements.

Employers and experts agree that improving communication and allocating more time for OTJ training would enhance completion rates. The previous requirement for apprentices to dedicate 20% of working hours to OTJ training was updated to a six-hour weekly minimum in 2022. Confusion remains over what constitutes OTJ, which must focus on developing new skills during paid hours but separate from daily roles.

Suggestions for addressing these challenges include implementing a Department for Education toolkit to aid small businesses in meeting OTJ requirements and improving support systems for apprentices. Recognising and prioritising the importance of OTJ training could positively impact apprentice engagement, retention, and employer commitment, paving the way for a more efficient and supportive apprenticeship framework.

EDUCATION POLICY ANALYSIS

T Level Placement Reforms Enhancing Student Opportunities and Engagement

The Department for Education (DfE) has eased rules on T Level industry placements to boost student participation. Announced by Skills Minister Jacqui Smith, the changes allow up to 20% of placements to be remote (50% for digital T Levels) and introduce simulated placements on campuses for high-risk industries. Placements can also now extend beyond a student’s specific subject area, offering more flexibility.

Previously requiring 315 hours in a physical setting, the reforms address low enrolment and retention rates since T Levels launched in 2020, with only 16,000 students starting in September 2023. New guidelines, effective immediately and fully detailed in January 2025, aim to simplify employer involvement, broaden opportunities, and attract more students to these technical qualifications.

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