Funding for more apprenticeships is welcome, but a clearer skills strategy is needed to boost opportunities for young people and employers

In response to today’s government announcement on apprenticeship funding, Lizzie Crowley, skills adviser for the CIPD, the professional body for HR and people development comments:

“Apprenticeship starts have been falling for years, limiting opportunities for young people and preventing organisations — especially smaller firms — from building the skills they need to boost performance. 

“Creating 50,000 apprenticeships and giving mayors a stronger role in connecting young people with employers is a positive step. And in a year of rising employment costs, fully funding apprenticeship starts for under-25s in smaller businesses will be welcome. 

“However, removing the 5% employer contribution alone won’t drive take-up. Cost is rarely the main barrier for smaller employers; the greater challenge is releasing staff for off-the-job training and having the management capacity to support apprentices effectively day to day. Without tackling those practical constraints, take-up is likely to remain limited. 

“To genuinely expand high-quality opportunities for young people, wage grants or other direct support to employers would be a more effective lever than small changes to training contributions alone. 

“There is a real need for a workforce strategy for England to ensure there is joined up policy making across skills, business support, innovation and employment regulation. There is little point in trying to boost opportunities for young people through new apprenticeship programmes if poorly designed employment legislation discourages businesses from investing in skills or creating new jobs.  

“Equally, if apprenticeships are to stand on equal footing with university routes, we need a clear and coherent skills strategy, not piecemeal reform. As a first step, the Government should strengthen the Youth Guarantee by considering an Apprenticeship Guarantee for 16–24-year-olds, ensuring access to level 2 or 3 programmes for those with the required qualifications. CIPD research shows strong employer support for this. 

“In addition to skills policy, the government must also ensure that changes to employment law don't discourage businesses from taking on young workers by consulting meaningfully and compromising where necessary on the Employment Rights Bill.”