Apprenticeship levels up on last year but still hampered by 2017 levy

More people started apprenticeships in the first quarter of the 2018-19 academic year than in the year before, but are still below equivalent figures reported in 2016-17 and 2015-16.

There were 132,000 starts between August and October last year, up 15.4 per cent year-on-year from 114,300, according to Department for Education (DfE) figures published this morning.

But the figure is still well below levels reported before the introduction of the apprenticeship levy, a tax which theoretically funds apprenticeship training for companies.

In 2016-17, 155,600 people embarked on apprenticeships, 17.8 per cent higher than this year’s figure, while 153,100 started them in the same period in 2015-16.

The apprenticeship levy charges all employers with an annual pay bill of more than £3m at a rate of 0.5 per cent of their total pay bill. The proceeds then go towards paying for more people to start apprenticeships at those companies.

The apprenticeship levy has faced criticism from businesses for the difficulty in accessing the funds, as well as problems with access to apprenticeships which are still in development.

Kirstie Donnelly, managing director at skills development company City & Guilds Group, said: “While it’s encouraging to see an uplift in apprenticeship starts in quarter one of the 2018-2019 academic year, compared to the same period in 2017-2018, we are unsurprised to see that these latest figures from the DfE show a continued trend in low apprenticeship take-up since the introduction of the levy – which needs to be remedied.

“Apprenticeships have huge potential to help employers fill critical skills gaps and strengthen the wider economy. With the current climate of socio economic uncertainty affecting UK businesses, it’s never been more urgent to improve the skills of our workforce and invest in training and retaining the talent that we already have.”

“Changes are needed now to reinvigorate the system, and we cannot wait another year for the pressing needs and concerns of employers to be addressed: we are calling on the government to take action now.”

Chancellor Philip Hammond announced an employer consultation on the matter in his Autumn budget, but this is not expected until 2020.

Skills minister Anne Milton said she was “thrilled” to see the latest statistics.

“Since we overhauled the apprenticeship system in 2017 more and more employers including leading firms like Royal Mail, Ernst and Young and Channel 4 are recognising the huge benefits apprentices are bringing to their workplaces,” she said.

“Apprenticeships offer people, of all ages and backgrounds, a high quality route to skilled employment with the option to train at every level. You get paid while you train and can start a great career in a huge range of professions like accountancy, nursing, teaching and law."