Some construction industry employers have suggested that apprentices should contribute to the cost of their own training, amid growing funding pressures.
The views are included in a report by industry bodies, the Construction Industry Council (CIC) and the Construction Leadership Council (CLC), which says the large employer levy used to fund apprenticeships should be reviewed to address inadequate levels of funding.
The report also calls for “large-scale simplification and streamlining” of the funding rules and regulations covering apprenticeships.
The recommendations are based on the debates with the participation of companies, academics and professional and regulatory bodies at an event held by the University School of Wealth Management (UCEM), which co-authored the report with the CIC and the CLC.
The apprenticeship levy, introduced in 2017, has “driven significant investment in apprentices”, the report says, with funds enabling better technical and vocational training and non-levy payers able to access 95 per cent of the funds needed to train their apprentices.
However, it adds that many employers are now using a full or “significant” proportion of their allocation, and others have “overspent”, and complexities around transferring levy funds to other businesses mean the money is “not being used or retained in the sector”.
The report highlights problems with apprentices leaving their program before a final assessment, which can result in employers and training providers being “unfairly penalised”, with “no recourse to recover apprentice funding”.
The report says “some employers question whether apprentices themselves should invest in or part-fund their training, or at least be responsible for a level of funding if they leave their apprenticeship early”.
The report says these withdrawals “often occur” in the period between the completion of a rating and the completion of the final assessment.
Although employers in this scenario will have paid the full amount for the training and assessment, the government retains 20% of this sum from the training provider, leading to “significant financial losses” of up to £5,400.
More generally, the report says the amount of funding allocated for individual apprenticeships is an “even more pressing matter” than the mechanics of the fee, with rising costs “threatening the viability” of some programmes.
There has been no increase to the £27,000 upper funding limit for apprentices since it was set in 2017.
“There needs to be a better match between the actual costs of providing high-quality learning and the funding allocated by government,” the report says.
The report also says that regulation of degree apprenticeships is “now disproportionate in terms of risk and places an excessive burden on training providers”.
It also calls for apprenticeships to be “more responsive and relevant” and for stakeholders to develop better-informed career guidance that reflects the wide variety of programs on offer.
In the report’s foreword, UCEM director Ashley Wheaton says that “funding levels for the provision and assessment of apprenticeships have remained flat” since apprenticeship reform a decade ago and the introduction of the apprenticeship levy in 2017.
He added that “little or no consideration has been given to hyperinflationary price increases, which are particularly affecting the built environment sector” following the Covid pandemic and the recent cost of living crisis.
“The result is that training and assessment costs much more now than when the level of funding for apprenticeships was established,” he said.
CLC co-chair Mark Reynolds described the report as “extremely insightful and useful”.
“Apprenticeships are vital to our future success, and we all need to support them to grow and improve our much-needed capability, capacity and productivity as we move to a modern, efficient and green economy,” he added.
“I look forward to engaging with ministers and government officials to discuss the report, but in the meantime, I urge all stakeholders to help improve routes into and through industry or support taking on an apprentice to provide them with a rewarding and exciting career.”
