Apprenticeship Plans are ‘Mixed Bag’ for Business

The Government announced major reforms to apprenticeships in England today, prompting mixed reactions from business and skills leaders across Norfolk and Suffolk. The changes include a 13% increase in the national apprenticeship budget, the introduction of Foundation Apprenticeships in key sectors, and a shift in funding for higher-level qualifications. Regional stakeholders, including the Norfolk & Suffolk Local Skills Improvement Plan (LSIP), have welcomed aspects of the announcement but caution that more must be done to simplify the system and meet local workforce needs.

Norfolk & Suffolk Local Skills Improvement Plan (LSIP) Skills Director, Dean Pierpoint said, “Businesses will welcome the funding boost announced by Government.  Locally, we are bucking the national trend, with growth being seen across both Norfolk and Suffolk in apprenticeship starts.  In Q2 of this year, Norfolk saw a 3.72% increase and Suffolk a 1.75% increase, this is against the national figure of 0.98%. 

“It’s encouraging to see that our region’s business community is committed to using apprenticeships for upskilling new entrants.  The government’s announcement, that it will increase the budget for apprenticeships by 13%, presents more opportunity for businesses to engage further with the local skills system.   However, the work of the LSIP demonstrates that there is still much work to be done with businesses to unpick the skills system. 

“We need to make the complexities of apprenticeships clearer for employers by de-mystifying the process, thus allowing business to make the most of this funding.  Fortunately, our region benefits from both Apprenticeship Norfolk and Suffolk Apprenticeships, which can support individuals and businesses to make the most of the latest changes.”

Alex Veitch, Director of Policy at the British Chambers of Commerce said, “The BCC has long called for flexibility in the Growth and Skills Levy for employers to invest in pre-apprenticeship training to provide more pathways into technical and vocational careers.  

“At a time when there are nearly 1 million NEET young people in the UK, employers will welcome the new Foundation Apprenticeships, with a financial incentive, in key skills shortage areas such as construction. 

“However, defunding the majority of Level 7 apprenticeship opportunities is deeply disappointing. We recognise the funding challenges ministers are facing, but skills gaps at higher levels need to be addressed if the Government is to deliver its industrial strategy and growth missions. 

“Employers stand ready to work with Skills England to make sure other types of training under the Growth and Skills Levy meet local needs.”