Jessica O'ConnorThe CIPD has welcomed additional government funding for apprenticeships but warned that wider structural issues must be addressed to increase opportunities for young people and support employer demand.
Responding to the announcement, Lizzie Crowley, skills adviser for the CIPD, said apprenticeship starts have been declining for years, limiting pathways for young people and restricting employers’ ability to build the skills they need.
She said measures to create 50,000 apprenticeships and give mayors a greater role in linking young people with local employers are steps in the right direction, and that fully funding apprenticeship starts for under-25s in smaller businesses will be helpful at a time of rising employment costs.
However, Crowley noted that removing the 5% employer contribution to training is unlikely to be enough on its own to increase uptake among SMEs.
She said: “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.”
Crowley also said a clearer long-term approach is needed to align skills, employment regulation, innovation and business support.
She added: “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.”
She concluded: “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.”
