Source · Select Committees · Education Committee
Recommendation 39
39
Accepted in Part
Paragraph: 156
Commission independent review to boost young people's apprenticeship starts through levy reform
Conclusion
The Department must set out how it will address the long-term decline in apprenticeship starts among young people, and ensure apprenticeships are the gold-standard ‘earn and learn’ option for school and college leavers. The Department must commission an independent review to examine possible mechanisms to achieve this, for example, considering ways in which levy reform could effectively incentivise an increase in apprenticeship starts among younger and lower-skilled learners.
Government Response Summary
The government outlined its plan to address the decline in young people's apprenticeship starts through existing and new initiatives, but rejected the call for an independent review into levy reform, stating it currently has no plans to reform the apprenticeship levy.
Paragraph Reference:
156
Government Response
Accepted in Part
HM Government
Accepted in Part
The Government shares the Committee’s view on the value of apprenticeships as a high-quality career pathway for young people. In the 2021/22 academic year, 53% of apprenticeship starts were by those under 25. We want to support more young people to start and achieve apprenticeships which offer good earnings potential and career progression. The Government is raising awareness of apprenticeships and making it easier for young people to find and secure the right option for them. We continue to promote apprenticeships in schools and colleges through our Apprenticeship Support and Knowledge (ASK) programme, which was supported by £3.2 million of funding last academic year. During the 2021/22 academic year, the ASK programme engaged with over 2,500 schools and FE colleges, reaching over 685,000 students, and over 58,000 parents. Our Career Starter Apprenticeships campaign is highlighting Level 2 and Level 3 apprenticeships which offer great opportunities to those leaving full-time education and looking to embark on a career in a specific sector. In addition, our Apprenticeship Ambassador Network, a voluntary network made up of employers and current or former apprentices, continues to inspire and motivate the apprentices of tomorrow. As the Committee highlights, the changes to allow individuals to search and apply for apprenticeships on UCAS will support parity of esteem between vocational and academic routes and support young people to consider a fuller range of options. We are working with UCAS and from this autumn, they will expand their service so that young people can see more personalised options, including apprenticeships. From 2024, students will be able to apply for apprenticeships alongside degrees. Although Government has no plans at present to reform the apprenticeship levy, we keep all policies under review, and we continue to take action to encourage more apprenticeship opportunities for young people. We have recently removed the limit on the number of apprentices that small and medium-sized employers can take on, as we know they are more likely to employ younger apprentices and apprentices from disadvantaged areas. We already provide financial assistance to support young people to access apprenticeships through the £1,000 payments to employers when they take on 16- to 18-year-olds and through the care leavers bursary which is increasing from £1,000 to £3,000 from August. In addtion, we continue to make it easier for employers to take on apprentices by improving our systems and removing unnecessary rules and bureaucracy.