Recommendation 36

HM Government Acknowledged

We agree with the Committee that apprenticeships are a vital stepping-stone for young people, and that disadvantaged pupils should have equal access to them. Apprenticeships are jobs with training, and so the apprenticeship opportunities available in different regions depend on the workforce decisions of employers. We continue to monitor the number of apprenticeships starts by those in deprived communities, and keep under review the support we provide to ensure that apprenticeship opportunities are available for people of all ages and backgrounds. We recognise the important role that SMEs play in creating apprenticeship opportunities in disadvantaged areas and for younger apprentices. Apprenticeship starts in employers who do not pay the apprenticeship levy, who are typically smaller employers, accounted for 34% of total starts in 2019/20, but these employers supported 57% of total starts by 16-to-18-year-olds. As we have set out in the Skills for Jobs White Paper, we are supporting SMEs to offer more apprenticeship opportunities. In 2021-22, we are making £2.5 billion available to support apprenticeships, including for employers who do not pay the levy, who will continue to be able to reserve funding for 95% of apprenticeship training and assessment costs. SMEs can now reserve funding for up to 10 new apprenticeship starts in 2021-22 financial year, increased from three. We have also made it easier for levy payers to transfer their levy funds to support more apprenticeships in SMEs. From August (2021) we have introduced a new online service, whereby levy payers can pledge funds that they want to make available for transfer, enabling them to make greater use of their funds. We are continuing to promote apprenticeships in schools across England through our Apprenticeship Support & Knowledge (ASK) outreach programme which provides students with information on, and support with, searching and applying for apprenticeships. To ensure that disadvantaged pupils have equal access, the ASK Development Schools project is providing specific support to 40 schools. These schools have disadvantaged students in years 10 and 11 who have the potential to progress into a traineeship or an apprenticeship but who are facing significant personal barriers such as learning difficulties, disabilities, or emotional, behavioural development issues. We do not agree with the Committee that changes are needed to the apprenticeship levy. The apprenticeship levy is important in supporting employers of all sizes to invest in high-quality apprenticeship training. It is right that employers continue to fulfil their skills needs by determining which apprenticeships they offer and when. We have created an employer-led system, improved quality, and increased investment to ensure that apprenticeships better meet the skills needs of employers and learners today. We have already committed to improving the working of the levy and will be making improvements in response to employers' feedback – parts of these improvements are around making it easier for levy-payers to transfer unspent funds and making training more flexible to meet the needs of different sectors. Apprenticeships remain available at all levels; we continue to welcome the development of high-quality occupational standards at Level 2, where there is employer demand for those. It should be possible for someone with limited experience to start an apprenticeship at either Level 2, which is equivalent to GCSE level, or at Level 3, which is equivalent to A Level. There are over 340 standards available at Levels 2 and 3. We want to see a rich apprenticeship landscape that provides a range of opportunities at all levels and delivers occupational competence across the economy. We are making apprenticeships more flexible so that more individuals, and employers in more sectors, can benefit from them. Employers have told us they want more front-loaded training which will support young apprentices, who are likely to have limited experience, develop the skills they need before putting them into practice in the workplace. We have published manuals to promote flexible training options in the construction and health and social care sectors. We are also supporting progression routes for young people from traineeships, skills bootcamps and T Levels into accelerated apprenticeships which will allow apprentices to complete more quickly by recognising their prior learning. We are also investing £7 million to help employers set up new flexi-job apprenticeships supporting more opportunities for young people in sectors such as construction and creative. Apprentices will be able to work across a range of projects with different employers to gain the skills and experience they need to complete their apprenticeships. We already provide additional funding to employers and training providers to support them to take on younger apprentices. We offer £1,000 payments for employers who take on 16–18-year-old apprentic