Government failing to fix skills shortage as apprentices level falls by over a quarter

The level of new apprenticeships has fallen almost 30 per cent from the 2016/17 to 2017/18 academic year.

The paltry take up figures will contribute to a growing concern amongst businesses that the government’s new levy system, introduced in April 2017, is failing to provide training for areas of industrial growth.

Instead, the levy has added to employment red tape and functions as a business tax as companies struggle to reclaim value from contributions.

The number of new workers starting an apprenticeship has gone up for the first time since the start of the introduction of the apprenticeships levy - but this is likely due to a larger group of post-16 leavers starting an apprenticeship in September 207. 

After an EEF survey showed the greatest worry for manufacturers in 2018 is a skills shortage, data from the Education and Skills Funding Agency, taken from Britain’s collated payroll, shows the Government is falling woefully short of the mark on skilling up young people to meet industrial needs.

Verity Davidge, Head of Education and Skills Policy at EEF, the manufacturers’ organisation, said: “Today’s figures should act as a wakeup call to Government which has failed to act on industry’s growing concerns around the Apprenticeship Levy. The fact that the drop isn’t as huge as the previous quarter is by no means a cause for celebration as the numbers are a snapshot of the time when most apprenticeships begin. The only ray of hope we can find is the increase in the number of higher apprenticeships.

“This worrying trend is not just hampering employers’ ability to get the skills their business needs, it is taking away invaluable opportunities for the next generation to undertake training and secure a future job.  It is clear the Apprenticeship Levy and wider reforms aren’t working and need a radical rethink. Government must listen to business concerns and ensure the Levy delivers the demand-led system that was promised to employers.”

Last week, Sir John Timpson, chair of the high-street cobblers Timpson, struck out at the levy, telling the Telegraph: “The levy is nothing but a tax -  the only way to get money back is a tortuous process of changing your training programme to fit government guidelines.”

Restrictive criteria from the Department of Work and Pensions also means many unemployed youths stand to lose money by starting a traineeship, the gateway to an apprenticeship position, as they can no longer claim Jobseeker’s Allowance.

The first quarter of the 2017/18 academic year had 114,400 apprentices starting, a decrease of 26.5 per cent from 155,600 reported for the first quarter of 2016/17.

The total of new apprentices over the age of 19 fell by 30.4 per cent, from 97,400 to 67,800.