Public Accounts Committee Apprenticeships inquiry. Response from the Association of Teachers and Lecturers 3 September 2016

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1 Public Accounts Committee Apprenticeships inquiry Response from the Association of Teachers and Lecturers 3 September About the Association of Teachers and Lecturers (ATL) 2. Summary 1.1 ATL, the education union, is an independent, registered trade union and professional association, representing approximately 160,000 teachers, head teachers, lecturers and support staff in maintained and independent nurseries, schools, sixth form, tertiary and further education colleges in the United Kingdom. AMiE is the trade union and professional association for leaders and managers in colleges and schools, and is a distinct section of ATL. We recognise the link between education policy and members' conditions of service. ATL exists to help members, as their careers develop, through first rate research, advice, information and legal advice. Our evidence-based policy making enables us to campaign and negotiate locally and nationally. ATL is affiliated to the Trades Union Congress (TUC), European Trade Union Committee for Education (ETUCE) and Education International (EI). ATL is not affiliated to any political party and seeks to work constructively with all the main political parties ATL is pleased to respond to the Pubic Accounts Committee inquiry into apprenticeships. Whilst the government remains focused on achieving 3 million apprenticeship starts by 2020, ATL is concerned that an emphasis on a numerical target will be to the detriment of quality. Issues remain around whether the government will consider the achievement of 3 million apprenticeship starts by 2020 a success, despite the fact that this will not necessarily improve productivity, or result in social mobility ATL is concerned that: i. The objectives of apprenticeship reforms have not been adequately defined. ATL does not believe that creating an ambitious numerical target will fix skills gaps, solve the productivity problem or increase economic growth. Leaving the market to ensure that apprenticeship reforms fix skills gap has not worked in the past and is therefore unlikely to be successful in the future; ii. The new standards (known as trailblazers ) have resulted in a proliferation of programmes in narrow occupational areas, which are likely to result in restrictive apprenticeships of low quality; iii. Trailblazer groups (employer-led groups designing new apprenticeship standards) have been dominated by large employers. The exclusion of small and medium enterprises, and the further education college workforce from this process is to the detriment of good quality apprenticeships. As there is no ATL submission to Public Accounts Committee inquiry into apprenticeships 1

2 requirement to include a d qualification in the trailblazer apprenticeship standards, no recognisable hallmark of quality exists; iv. The role and structure of the Institute for Apprenticeships, which is to take responsibility for quality, remains unclear. ATL is concerned that the Institute s remit will become too wide as a result of the Skills Plan, that the new part-time Shadow Chief Executive will be unable to dedicate sufficient time to the Institute, and that delays have resulted in it being unlikely that the structures will be in place before the introduction of the apprenticeship levy in April 2017; v. Apprenticeship reforms should ensure that the needs and aspirations of individuals, as well as employers, are met; vi. Apprenticeships are not currently available in the quantity and quality required to support social mobility, particularly for young people. There is a significant diversity in the regional and sectoral availability of apprenticeships. ATL is unconvinced that the apprenticeship levy will increase the quantity and quality of apprenticeships; vii. Whilst there is significant demand for apprenticeships from young people, they face a number of barriers to accessing good quality programmes. This includes the fact that employers prefer to recruit older, existing employees; viii. The government should guarantee the quality of apprenticeships by adopting the features of good quality programmes identified by ATL, and ensure that the further education workforce is represented on the Board of the Institute for Apprenticeships. 3. Lack of clear objectives for apprenticeship reform 3.1 The objectives of apprenticeship reform have not been defined by government. The reforms are the result of the recommendations made in the Richards Review of Apprenticeships, conducted to consider how apprenticeships can meet the needs of the changing economy. 1 The government subsequently stated that apprenticeships should be more responsive to the needs of more employers and designed by employers to meet their needs, the needs of their sector and the economy more widely ATL does not believe that these objectives can be met by simply setting a numerical target. Indeed, in December 2015, Ofsted stated that apprenticeship reforms must focus on raising the quality rather than increasing numbers. 3 However, the government appears to be single-minded in achieving 3 million apprenticeships. There are no additional measures with regards to contribution to productivity and economic growth, against which the success of apprenticeship reform will be determined. 3.3 If apprenticeship reform was intended to meet the needs of employers and the wider economy this implies that fixing skills gaps was an objective. However, there is a lack of clarity around the definition of the term skills gap ; as many definitions of this term exist as there are people defining it. The proliferation of apprenticeships in the customer 1 D. Richard, The Richard Review of Apprenticeships, November The Future of Apprenticeships in England: Implementation Plan, HM Government, October Ofsted Annual Report, 2014/15, education and skills, December ATL submission to Public Accounts Committee inquiry into apprenticeships 2

3 service, retail, administration and care sectors indicate that skills gaps in these areas are being met. 3.4 There is much discussion of STEM skills gaps. For example, a CBI/Pearson survey reported that businesses are experiencing widespread difficulties in recruiting staff with the necessary science, technology, engineering and maths (STEM) skills, with half (52%) of firms experiencing (or expecting within three years) a shortfall of adequately qualified staff. 4 Research exists however, to show that the gap results, not from the lack of supply of entrants with STEM skills to the labour market, but because of an incentives deficit. For example, those skilled in STEM choosing to work in finance because the rewards or prospects seem better. 5 It is clear therefore that, setting an ambitious overall numerical target for apprenticeships and then assuming that the market will ensure that the specific sectors and individual employers needs are met, will not work to fix skills gaps. 3.5 Employers state that the introduction of the levy from April 2017, designed by the government to increase the supply of apprenticeships, is unlikely to fix skills gaps. The Confederation of British Industry has said that skills gaps persist in countries, such as Ireland, France and Greece, where levies operate, as this system encourages employers to invest solely in levy funded programmes at the expense of other, often more appropriate and relevant, forms of training The proliferation of apprenticeship standards ( trailblazers ) risks quality 4.1 The number of apprenticeships surged to over 2 million in 2015, an increase of 70% on the previous five years. However, this increase was mainly due to the large volume of starts in the customer service, retail, administration and care sectors. Ofsted recently stated that many of these apprenticeships are of poor quality, with 49% of provision judged inadequate or requiring improvement. 7 Furthermore, apprentices in the food production, retail and care sectors were completing apprenticeships by having low-level skills accredited. Ofsted also stated that high quality apprenticeships are typically found in industries with long-established reliance on apprentices to develop their future workforce. 4.2 Currently, there are 146 apprenticeships approved for delivery under the new employerdesigned standards (known as trailblazers ), with a large number still in development. The President of Pearson UK recently warned of the great risk of variability in standards between apprenticeships. 8 The proliferation of programmes in narrow occupations is likely to result in restrictive apprenticeships, as defined by Professors Alison Fuller and Lorna Unwin from University College London. 9 In restrictive apprenticeships, participants access to learning is narrow, in terms of tasks, knowledge and location, and apprentices have limited and restricted access to the range of skills and knowledge of their workplace. With exemplary (known as expansive ) apprenticeships, the aim is to 4 CBI/Pearson Education and Skills Survey 2015: Inspiring Growth, August The Skills Gap: Is it a myth?, Social Market Foundation and University of Warwick, The Path Ahead, CBI/Accenture Employment Trends Survey, Ofsted Annual Report, 2014/15, education and skills, December Variability in apprenticeship standards could 'undermine' credibility, warns Pearson president, Times Educational Supplement, September L. Unwin and A. Fuller, Creating and Supporting Expansive Apprenticeships: A Guide for Employers, Training Providers and Colleges of Further Education, National Apprenticeship Service, ATL submission to Public Accounts Committee inquiry into apprenticeships 3

4 achieve rounded experts who participate multiple communities of practice inside and outside the workplace. 5. Putting employers in the driving seat of apprenticeship standard design risks quality 5.1 Safeguarding the quality of apprenticeships is imperative because, without good quality training and education apprentices, cannot make a contribution to increased productivity. There are a number of issues surrounding the employer-designed trailblazer apprenticeships, most significantly, a lack of recognised qualifications, such as BTechs and NVQs, which are not a requirement of employer-designed programmes. 5.2 Trailblazer groups designing new apprenticeship standards have been dominated by large employers, rather than SMEs, which do not have the capacity or resources to be involved in this voluntary scheme. Currently, the majority of employers with which further education colleges deliver apprenticeships are local SMEs. With the dominance of large employers in apprenticeship reform, there is a risk that standards developed will not be appropriate for all employers in each sector, particularly SMEs. These reforms are therefore unlikely to support economic growth as small businesses account for 99% of private sector businesses and 60% of all private sector employment in the UK. 5.3 Trailblazer groups of employers have not been required to include contributions from those with expertise of delivering apprenticeship programmes. The further education workforce has developed working relationships with local employers to deliver apprenticeships over decades. It is surprising that the knowledge, skills and experience of those working with apprentices in further education colleges has been excluded from discussions around apprenticeship reform, both in trailblazer groups and through a lack of engagement with the government s Review of Post-16 Education and Training. 6. It is unclear how the Institute of Apprenticeships will have the capacity to adequately monitor the quality of apprenticeships 6.1 The new Institute for Apprenticeships will have a statutory duty to ensure high quality standards and assessment plans, which will lead to high quality apprenticeships. 10 The Skills Plan, published in July 2016, stated that the role of this organisation would be expanded, so that it will become the Institute for Apprenticeships and Technical Education. ATL therefore has concerns that the remit of this Institute will be too wide to properly ensure that it meets its duty in this regards. 6.2 In addition, the very recently appointed Shadow Chief Executive of the Institute of Apprenticeships is to carry out this role in a part-time capacity, in conjunction with his existing responsibilities as head of the Skills Funding Agency and Education Funding Agency. ATL does not believe that one part-time individual will have the capacity to safeguard the quality of apprenticeships on an ongoing basis, particularly during a period of wholesale apprenticeship reform. 6.3 Difficulties have been experienced in establishing the Institute of Apprenticeships, for example with the first Shadow Chief Executive leaving the post after just two months. The structure of the Institute has not been published, and there is no information as to how it will go about its work and fulfil its statutory duties. ATL remains sceptical that 10 Institute for Apprenticeships: Enterprise Bill factsheet, February ATL submission to Public Accounts Committee inquiry into apprenticeships 4

5 these issues will be satisfactorily resolved over the coming six months before the apprenticeship levy is introduced in April Further education colleges have decades of experience of designing and delivering high quality apprenticeships that benefit employers and apprentices alike. Colleges also have considerable expertise around assessment and knowledge of the local labour market, including established relationships with the employers best suited to delivering good quality apprenticeships. An opportunity now exists for the Institute for Apprenticeships to have representation of those with the knowledge, skills and experience of designing and delivering apprenticeships in further education colleges, through workforce participation on the Board. Whilst the government insists that the Institute of Apprenticeships is employer led, only through a social partnership approach will the high quality of apprenticeships be guaranteed. 7. Apprenticeship reforms must consider the needs and aspirations of the individual as well employers 7.1 Whilst the government has prioritised employers skills needs through apprenticeship reform, ATL believed that learners needs and aspirations should be central to system design and delivery. Good quality apprenticeships should support social mobility and help young people into good quality jobs with opportunities for progression. 7.2 The limited availability of good quality apprenticeships restricts the potential for social mobility. In May, research commissioned by IPPR found that whilst there were 1.8 million applications for apprenticeships, just 166,000 apprenticeship vacancies were advertised last year There is concern that the levy will fail the government s intention to encourage employers to increase the number of apprenticeship opportunities available. There has been no modelling of the levy, and there is no guarantee that it will be used by employers to take on apprenticeships, or whether it will be regarded a tax. Many employer representatives have voiced concerns over the apprenticeship levy and called for a delay to its implementation. 12 Indeed, in a Confederation of British Industries survey, 72% manufacturing and 45% services (retail & hospitality, transport & distribution, and other services) employers stated that the apprenticeship levy is the wrong approach to solving skills gaps as it is costly and bureaucratic There is also considerable regional variation in the availability of apprenticeships. London for example, has nearly 15% of England s population, but only 8% of apprenticeships (compared with 13% of the population and 16% of the apprenticeships in the North West). Furthermore, the apprenticeships available in London are concentrated in the arts, media and publishing sectors. Apprenticeships in engineering and manufacturing are concentrated in the North West and West Midlands. In addition, there are fewer apprenticeships available in many rural and coastal areas. 7.5 Those apprenticeships that are available locally may not reflect the skills, talents, interests and aspirations of those seeking opportunities in the area. However, the low 11 Learner drivers: Local authorities and apprenticeships, IPPR, June Government must listen to the concerns on Apprenticeship levy, Institute of Directors press release, August The Path Ahead, CBI/Accenture Employment Trends Survey, ATL submission to Public Accounts Committee inquiry into apprenticeships 5

6 level of the national minimum wage for apprentices does not enable applicants to move to different parts of the country to take up opportunities. 7.6 Women and people from ethnic minority backgrounds are under-represented in apprenticeships. 14 The barriers to apprenticeships are also greater for young people. There currently 843,000 people aged who are not in employment, education or training. There is little indication however, that young people are being supported into apprenticeships as the latest research shows that only 6% of year olds are on apprenticeship programmes. 15 Young people are even less likely than older people to be sufficiently financially independent to leave home and relocate to different parts of the country where suitable apprenticeships may be available. Furthermore, recent analysis by FE Week of apprenticeship funding exposed that, from May 2017, rates could be cut by up to 50 per cent for the most deprived 16 to 18-year-olds The proliferation of apprenticeships in sectors such as construction, hairdressing, business administration and health and social care also disadvantage young people s social mobility. Besides having highly casualised workforces, these sectors are nontraditional in terms of apprenticeship delivery, and therefore have a tendency towards more restrictive progarmmes. The omission of a requirement for recognised qualifications in the new trailblazer apprenticeship standards will also further restrict mobility. Such apprenticeships are unlikely to be portable between employers, occupations, sectors and countries. 7.8 Despite the limitations of opportunities, and media stories to the contrary, there is high demand for apprenticeships from young people. Of all the registrations on the government s Apprenticeships website, 46% are aged years, and 60% of applications to apprenticeships are made by young people under the age of 18 years. Despite this, only 27% of level 2 apprenticeship starts are aged under 19 years. This indicates that young people are aware of apprenticeships and are also actively pursuing opportunities in this area, albeit unsuccessfully. This is supported by the fact that the majority of those starting on apprenticeships are older. Indeed, 48% of apprenticeship vacancies are filled by existing staff. It would therefore appear that the problem of young people not taking up apprenticeships is due to employers finding it easier and cheaper to recruit older existing employees. 8. Recommendations 8.1 In order to safeguard the quality of apprenticeships, the government should ensure that they adopt the features identified by ATL below: Pay a fair rate The current minimum wage rate for an apprentice is 3.30 per hour. This applies to apprentices aged 16 to 18 and those aged 19 or over who are in their first year. Some apprenticeships are however, paid substantially more than the minimum, and include additional benefits, for example travel cards. Apprenticeship programmes should be financially viable for apprentices, taking into consideration costs such as travel and subsistence, and appropriate clothes for work. 14 B. Newton and J. Williams, Under representation by gender and race in Apprenticeships, Institute for Employment Studies, Ofsted Annual Report 2013/14, further education and skills, December Funding rates cut by up to 50% for the most deprived apprentices, FE Week, 19 August ATL submission to Public Accounts Committee inquiry into apprenticeships 6

7 Are jobs with a productive purpose and progression Apprentices should have parity of terms and conditions with all other employees. Good quality apprenticeships will have progression opportunities to genuine, secure and long-term employment at the end of the training. Include high quality learning and qualified vocational educators in the areas of teaching, training and assessing An apprentice should have a dual status as a learner, as well as an employee, and feel valued within and by the education system. Apprentices must be given sufficient paid time off the job to study in college or in a dedicated workplace training centre. Training must be relevant to the job and recognisable in the sector. Good quality apprenticeship programmes should include a technical knowledge qualification (such as a BTEC) and a competencies qualification (such as an NVQ), which will ensure progression and mobility between employers, occupations and sectors on completion. In the best possible apprenticeships, general education (comprising citizenship topics) supports personal and professional development, as well as occupational readiness. Clearly develop the apprentice s skills On the job training should be fundamental to the apprenticeship. There should be a clear system for supervision, support and mentoring, by appropriately trained work colleagues. Apprenticeships should develop skills relevant to, and an expertise in the occupational field, rather than focusing on meeting employers immediate skills needs. Professional registration should be achieved as part of the apprenticeship programme where it exists. Include a training plan A training plan should set out the apprenticeship standards, each element of the programme and the rights and responsibilities of the apprentice, employer and training provider. The training plan should be agreed and signed off by each stakeholder (including the apprentice s parent or carer if under the age of 18 years). Involve trade unions at all stages Trade unions should have a constructive role in the development and delivery of the apprenticeship programme. Unions will negotiate around aspects of the apprenticeship, support apprentices and work with the employer to ensure the quality and success of the programmes. The union rep should play an integral role in supporting, developing and advocating for apprentices. Union representatives, especially union learning reps, are ideally placed to act as mentors to apprentices. Are accessible to, and achievable by all A good apprenticeship programme will include strategies to ensure that apprenticeships are accessible to the widest possible demographic and diverse spread of people. Particular attention will be given to enabling people from disadvantaged groups to take up any opportunities offered and support given to complete them successfully, thereby achieving the full benefit of apprenticeship. 8.2 The further education workforce should be represented on the Board of the Institute of Apprenticeships, to ensure that this organisation s procedures for safeguarding quality considers the wealth of experience, knowledge and skills within the sector. ATL submission to Public Accounts Committee inquiry into apprenticeships 7