The Apprenticeships Select Committee Report

March 2013

         

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  )RUHZRUG   An “Apprenticeship”, we all know, is current, popular and well thought of. We have found it so in our short but intensive Select Committee hearings and interviews. The subject, almost invariably, has invoked a smile and a genuine desire to discuss and debate. Society must not lose that enthusiasm and desire to participate, to share and to grow.

The Select Committee has only had four weeks to collect evidence, yet in that time we have spoken to over 38 witnessing bodies and over 40 apprentices. We have extensively used our Members as rapporteurs who have often sought out and managed their own interviews, providing a rich, varied and immensely valuable evidence base.

The report and the recommendations follow what we have heard and been able to verify. The report really does need to be read holistically as the apprentice picture is complex but hugely important for apprentices and employers, as well as a direct driver for skills in a changing economy, for growth and steps that are bold for Kent.

The evidence we have heard has produced eight main areas of interest. The enthusiasm for apprenticeships across society; the need for more work on effective information, advice and guidance; education and learning destination into a job/employment; supply and demand for apprentices; the importance of SMEs and their future role; a continuing step change by KCC from intervention to strategic planning, thinking and commissioning; the future quality of apprenticeships in Kent; and the importance of a bottom rung on the progression ladder through clearer progression pathways for not only apprentices but also for providers and especially employers.

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I am delighted and proud to report that apprenticeships in Kent are in good hands with KCC as one of the strong leaders. The KCC 14-24 Team have shown great leadership and dynamism in a short time. Naturally there is much more to do, but we found that the building blocks are there. We hope the recommendations will be useful with the report context - helping to expand and inform on new ideas and ways forward.

Our thanks goes to all those who gave evidence in such a frank, honest and open manner. It has been so encouraging to hear from those in apprenticeships and those whose careers have been changed and uplifted by the experience. As ever our thanks goes to all those KCC staff who have been so helpful. Finally I would like to thank all the Select Committee for their time and huge commitment.

Our special thanks go to Gaetano Romagnuolo and Simon Shrimpton who in record time have researched, pulled the evidence together and written this report.

Apprentices make up a skilled, experienced workforce that sits centrally as the key powerhouse in economic and social regeneration and growth in our communities. We hope that this report can help that vital cause.

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Page 19   %DFNJURXQG   Young people represent the future for Kent and its economy. It is essential to create an environment and opportunities in which they can develop their skills and fulfil their potential. In these difficult financial times accessing sustainable employment can be challenging; enhancing the employability of young people is vital if we want to contribute to the country’s economic recovery and give our youth the best possible future.

One of the main tasks of an effective education system is to prepare young people for the world of work. However, the traditional focus of English secondary education on academic achievement may not be ideal for students who are better suited to applied, practical learning. Apprenticeships, through nationally recognised vocational education and training coupled with work-based learning, have a key role in developing their employability. But today’s high quality, advanced apprenticeships can also offer real opportunities to those who were traditionally attracted to higher education. And, by improving workers’ skills and developing sustainable employment, apprenticeships can help local businesses to develop and grow.

While apprenticeships are increasingly recognised as offering a valuable way of preparing young people for the world of work, there are still concerns about their image, delivery and effectiveness. This Committee was set up to address these issues in order to ensure that young people are able to contribute to the growth of Kent’s economy, and are given the best prospects for the future.           Page 20    7HUPLQRORJ\   ³

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   $SSUHQWLFHVKLSV7KH%HQHILWVDQG&KDOOHQJHV   Apprenticeships are becoming increasingly central to any discussion about education systems and the provision of high- quality vocational education. They provide an important route through that system and offer a series of benefits for both young people and employers. However, there are a number of acknowledged problems that hinder the perception, take-up and development of apprenticeships in Kent and throughout the Country. 

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 “At O2, we’re with apprentices because we’re

 committed to helping our people grow and

 progress and we see the value they can offer.

 Our apprentices are given hands-on experience

 in a variety of job roles, and we’ve found that

 this is a great way to develop raw talent,

 ensuring they have the knowledge and skills we

 need to progress in the future.”

 - Ann Pickering, HR Director, Telefonica UK 

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The benefits of apprenticeships include:

 Apprentices learn on the job; they build up knowledge and skills, gain qualifications and earn money all at the same time.  A large proportion apprentices go on to management positions within the company that employs them.  You can become an apprentice from age 16.  Apprenticeships help businesses to grow, offering an employer the opportunity to mould an employee to their current or future needs.  Salaries for young apprentices are 100% tax deductible.  There are a number of alternative routes for businesses who might otherwise struggle to employ apprentices directly.

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Good Practice

McDonald’s Skills Programme

McDonald’s created its skills programme to ensure its relevance to apprentices and to align it to key company drivers. Teachers are appropriately qualified in literacy and numeracy. The assignments encourage apprentices to help the company improve its environmental performance and share the improvements with customers. Apprentices are given a choice of assignments such as the following:

 Calculating the costs of energy use and considering how these could be reduced by good housekeeping;

 Recording the amount and type of litter collected near restaurants and presenting the findings in a range of charts and graphs. Considering what the results told them about people’s behaviour and how the business could reduce its impact on the local environment.

 Developing a leaflet on McDonald’s products, detailing the quality of the food and where it was sourced. One apprentice said: ‘I have developed my confidence and my ability to inform customers about food quality and to pass on information to other local businesses and members of staff who have not completed the apprenticeship.’

    

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Good Practice

Apprenticeships in Germany

Youth unemployment in Germany is one of the lowest in the EU. Apprenticeships have a high status; two thirds of young people undertake an apprenticeship. In comparison, in 2011 in England only 6% of young people aged 16 to 18 began an apprenticeship.

German apprenticeships cover over 300 trades, and both employers and the government are involved in the design of programmes and the payment of the apprentice. Nearly all apprenticeships are at Level 3, and most programmes take three years to complete. In England, two thirds of apprenticeships are at Level 2 and most programmes last one to two years.

Information and guidance on choosing an apprenticeship is well established in German schools and careers advice centres. The range of subjects is evenly represented across service sector and industrial or craft occupations. In England, a recent Ofsted survey found careers guidance on apprenticeships to be weak.

Employer engagement is particularly strong in Germany. In 2005, nearly 100% of large firms (with more than 500 employees) offered apprenticeships, compared with 30% in England.

Source: Learning and Skills (2012), Ofsted.

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Good Practice

Apprenticeships in Switzerland

In Switzerland, all apprentices attend publicly-funded vocational schools, limiting the costs for business. Employers can choose to provide additional training in technical subjects or other areas. Switzerland is the only country in Europe where the firm bears no net cost as a result of the apprenticeship.

Young people in Switzerland are also provided with extensive careers guidance, which begins when the young person is about 12. During this process they learn about the local economy and local business. As they get older they attend careers centres, and parents become part of the careers guidance process. Young people may also attend taster sessions in local businesses that offer apprenticeships in which they learn how to apply for jobs.

Some have argued that the Swiss apprenticeship model is in many ways the most successful in Europe. Swiss school leavers have a higher educational standard, and are normally more qualified when they start an apprenticeship. Apprenticeships are a popular career pathway in the country; in 2010 just under two thirds gained the apprenticeship certificate.

Source: The Apprenticeship Journey (2012) Federation of Small Businesses



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Good Practice

Apprenticeships in Austria

In Austria, 40 per cent of young people go into apprenticeships, the majority of whom are under-19. Most apprenticeships last three years and completion rates are high. The demand for apprenticeships is very high; more young people want to be apprentices than there are businesses to support them. This phenomenon is also apparent in England.

A number of measures have been taken by the Austrian Government since 2003 to increase the number of engaged businesses:

• The appointment of apprenticeship advisors (experienced apprenticeship trainer and providers) whose job is to contact firms directly and persuade them to offer more apprenticeships.

• The provision of training facilities for young people not yet ready to take up an apprenticeship, or for apprentices that are falling behind the expectations of their employer. This provision is supplied outside of the employer’s remit.

Alongside financial incentives these measures have begun to reverse the trend and increase employer demand.

Source: The Apprenticeship Journey (2012) Federation of Small Businesses

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Page 70   

   $SSUHQWLFHVKLSVDQG$ZDUHQHVV    Although apprenticeships are becoming an important part of the English education system, they are still surrounded by a variety of issues which limit their potential. The delivery practices of some apprenticeships, with short time-scales and inadequate organisation, encourage a negative perception of all apprenticeships, and endanger the integrity of the apprenticeship “brand”.

The provision of accurate and genuine information, support and guidance is crucial in raising awareness about what apprenticeships can offer, and in promoting them to employers, young people and society at large.

KCC is already doing much to promote the quality and take-up of apprenticeships in the county. Nonetheless, we believe that Kent should lead by example to ensure that apprenticeships become an essential reference point in our education system and a route towards successful careers and prosperity.  

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   $SSUHQWLFHVKLSVDQG%XVLQHVV   Businesses are playing an increasingly central role in the development and delivery of apprenticeships. A number of recent, influential reviews, such as the Richard Review and the Holt reviews, emphasise the importance of employers’ involvement to align apprentices’ learning outcomes more closely with business needs.

We know from employers who offer apprenticeships that they recognise that apprentices are an investment which can improve their skill base and expand their business. Yet the majority of businesses in Kent do not offer apprenticeships; more can be done to ensure that they meet increasing demand from young people.

One of the key challenges to the further expansion of apprenticeships is that the overwhelming majority of businesses in Kent are SMEs; they lack the resources of larger businesses, and therefore can be less willing to make the investment that apprenticeships require.

While many of the recommendations in this report are aimed at supporting Kent employers, we believe that a number of specific initiatives should be implemented to help our smaller businesses to take on apprentices.                 Page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Good Practice

The BT Model

In the BT model, which can be adapted to other sectors, BT quality assures and endorses apprenticeship programmes in areas such as:

 Customer Services  IT  Telecommunications  Human Resources  Security  Project Management  Finance

BT also offers a training venue that providers and apprentices can use for the teaching element of the apprenticeship programmes.

The teaching and bureaucracy are removed from both BT and SMEs. They are instead dealt with by Stoke College and E-Skills. E-Skills, which is the organisation that receives apprenticeship funding from the SFA, is also subject to quality inspections by Ofsted.

SMEs benefit from taking on apprentices, and from other organisations dealing with the teaching and red tape. BT also benefits from the initiative, as the company is assured that the SMEs with which it operates are equipped with the high standard skills and knowledge that it requires.

This model is highly successful and is often cited as an example of good practice. The overall apprenticeship completion rate is 98.7%, compared with the national average of 76.4%, and the retention rate of apprentices stands at 96%.

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   $SSUHQWLFHVKLSVDQG(GXFDWLRQ   One of the key aims of the education system is to prepare young people for the world of work. Perhaps today this is particularly important given the large number of young people out of work. We have already discussed how lack of awareness and ineffective IAG provision to young people can hinder the expansion of apprenticeships.

However, there are other systemic barriers in the sphere of education that need to be addressed. Some of them involve the preparation and work-readiness of young people, such as their development of soft skills and experience of work. Others relate more to mechanisms that hinder the take-up of apprenticeships and progression through the apprenticeship journey.                             

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    $SSUHQWLFHVKLSVDQG.&&   We are convinced that KCC can perform a central role in the growth of apprenticeships in the county. KCC should lead by example, by promoting and expanding the apprenticeship programme within our workforce and by encouraging our partner organisations to do so.

Importantly, we believe that in order to further stimulate the growth of apprenticeships in the marketplace, KCC should move towards a more strategic and enabling role.

It is our vision that a few years from now, an established and reputable apprenticeship brand will offer a high quality alternative to academic education, meeting the needs of a growing Kent economy and leading to prosperous careers for our young people.

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