Denis Hird assesses the government’s new strategy for developing apprenticeships

The issue of apprenticeship training is currently at the forefront of government policy. Apprenticeships are now seen as playing a key role in the future shaping of the UK skills base and economy.

In January, the government published its strategy for the future of apprenticeships in England. This report talks positively about the benefits that vocational training – advanced apprenticeships in particular – can offer employers, employees and the economy.

Following the release of this document was the launch of the first National Apprenticeship Week (25-29 February).

The week was launched as a platform to encourage employers and young people alike to consider the merits of training.

A recent report from the Construction Skills Network claims that between now and 2011, the construction industry will continue to experience the trend of growth it has enjoyed for the last decade, and it will need an average 87 600 new workers each year in order to deliver.

In terms of the electrical contracting market, this is reflected in an anticipated requirement of 17 000 newly qualified electricians each year by the same date.

The message for employers is clear: the UK is heading for a trade skills crisis unless both business and government work hard to increase the number of apprenticeships available.

Skills shortage

Employers in the electrical industry are no stranger to apprenticeships. On the contrary, vocational training has been long established in this field, and no electrician can be fully qualified unless they have completed all the components of an apprenticeship framework.

From the large plcs down to the one-man bands, employers who train deserve recognition for their efforts. Employers who don’t train need to think more carefully.

It is easy to imagine that many feel they have heard enough about training, and why they should invest in their company and the UK workforce. But it is important these messages are consistently delivered, as employers need to be aware not only of what is available to them, but also the pitfalls of failing to train.

One of the main concerns is lack of planning for the future. Succession planning has got to be key to the continued success of any business. Too many businesses fail to consider that they are employing an ageing workforce and that in two, five or 10 years’ time, a percentage of their workforce is going to be packing up work and entering a well deserved retirement.

There might not be a skills shortage today, but I urge employers to consider what state their business could be in in four years’ time. What major projects are planned for 2011 and 2012? How are they going to service these? And, as a priority, what are staffing requirements going to be?

Failure to do so could have catastrophic consequences for these companies and the UK skills base. It takes four years for an electrician to qualify, so plan ahead.

Why apprenticeships?

There will be extra funding for apprenticeships for those aged 25 and over, and flexibility in adult learning budgets.

In truth, apprenticeship training is the only real way of securing a fully qualified and skilled workforce. An apprenticeship, on successful completion, will ensure fully qualified status as an approved and Joint Industry Board-registered electrician. Everyone undertaking the apprenticeship will have completed four years of on-the-job training, an NVQ Level 3 qualification, relevant key skills, a technical certificate and attained an Achievement Measurement Two (AM2) certificate.

Whatever the risk of a severe skills shortage, it is JTL’s firmly held belief that it is not only the UK economy that benefits from apprenticeships but also the individual businesses that train. As the industry’s main apprenticeship training provider, JTL supports the government’s recent drives to increase apprenticeship numbers, but also believes employers should be given extra support in their training endeavours.

Government support

In terms of employers, two of the most interesting points that arise from the government’s report are adult trainees and a wage subsidy programme.

There already exists in England a direct incentive payment scheme under the Learning and Skills Council’s (LSC) ‘Train to Gain’ initiative, whereby employers with fewer than 50 full-time employees are eligible to receive a contribution to wage costs for employees to help them achieve their first full Level 2 qualification and/or approved Skills for Life qualifications. This currently does not extend to apprenticeships.

According to the report, the government believes this approach should be extended to employers with fewer than 50 full-time employees that recruit apprentices. They also wish the scheme to be extended to 16 to 18-year-old apprentices and for the amounts available to employers to be equivalent to the Education Maintenance Allowance paid to young people while in full-time education.

The government does not propose across-the-board eligibility for this payment.

The report says: “The particular risks of employing 16 to 18-year-olds vary across different types of business, as do the benefits for the programme of incentivising growth in this way. It will be targeted where it is likely to bring meaningful growth (for instance, a target group might be cost-sensitive small businesses in a sector that we know to be afflicted by skills shortages), and the criteria will be transparent.”

Smaller firms aren’t the only ones being considered for payment incentive schemes.

“There is scope for moderate growth in apprenticeship numbers by offering similar direct-payment incentives to large companies, so that they can recruit more apprentices than they need to meet their requirements,” says the report.

The other area for consideration in the strategy is an issue dear to many employers’ hearts: adult trainees.

“The government pledges to be responsive to demand. There will be additional funding for apprenticeships for those aged 25 and over, flexibility in adult learning budgets, an apprenticeship ‘credit’ delivered via skills accounts to improve transparency for employers and learners, and funds to cater for unanticipated demand.”

JTL is in no doubt that extending support in these areas would greatly benefit both the industry and the UK in general as it would make recruiting apprentices a much more financially viable option, particularly for smaller businesses that do not have the infrastructure in place to take on extra staff.

However, more concrete plans need to be put in place for the electrical industry, and other skilled trades across the building services engineering sector, before employers can start to celebrate.

JTL, along with other key bodies across the industry, will continue to work towards ensuring employers are given all the support they need to achieve a trained and qualified workforce, and welcomes any moves from the government that support this.