AELP backs key apprenticeship reforms

AELP has welcomed a series of reforms to the apprenticeship system which will result in some key improvements, while raising concerns about cutting level 7 apprenticeship funding as part of the package.

At Labour Party Conference today, the Prime Minister recognised the need for apprenticeships to play a huge role in filling the country’s skills gaps. This will involve the government introducing flexibilities to an apprenticeship format including revisiting the 12-month minimum and reviewing the maths and English requirements.

The package of reforms will also see Foundation Apprenticeships included in the Growth and Skills Levy, which will be available in specific sectors and allow providers to recognise prior learning gained to support timely progression. This will bridge a gap for employers and open up tens of thousands of opportunities for young people.

This will be funded by savings through imposing restrictions on apprenticeship funding which will result the majority of level 7 programmes no longer receiving taxpayer funding via the levy.

AELP supports a number of these reforms to apprenticeships. However, the organisation argues that the defunding of level 7 standards results from self-imposed choices facing government on apprenticeship spending caused by the £800m shortfall between funds raised through the Apprenticeship Levy – soon to become the Growth and Skills Levy – and the actual programme budget.

The apprenticeship budget for Financial Year 2024/2025 sits at £2.7bn, with £4bn currently raised from the Apprenticeship Levy – which is set to be rebadged as the Growth and Skills Levy. With money set aside for Scotland, Wales and Northern Ireland, this leaves around £800m raised by business for skills not being spent on training. On average, over the last two years, 98% of the apprenticeship programme budget has been spent – and the Labour Party’s plans to reform the Apprenticeship Levy will add further pressure to the overall budget. AELP continues to argue that an all-age, all-levels apprenticeship system could be maintained without the need for rationing if this shortfall is plugged.

AELP set out its priorities ahead of the Autumn Budget in its submission to the Treasury earlier this month.

Ben Rowland, Chief Executive of AELP, said:

"We are pleased that the Prime Minister used his speech today to ensure apprenticeships are front and centre of government policy to fill our skills gaps. Today’s announcement sees the government take on board a range of key AELP asks ahead of the Autumn Budget - including introducing flexibilities to apprenticeships such as reducing the 12-month minimum, and reviewing maths and English requirements, the latter of which AELP has campaigned long and hard for. We are also pleased to hear that the new Growth and Skills Levy will allow Foundation Apprenticeships, another concept that AELP proposed, and we look forward to continuing to work with officials in its effective design and subsequent implementation.

Funding all of this through the removal of government subsidy on the majority of level 7 apprenticeships is disappointing though. While it may not be surprising given underfunding throughout the apprenticeship system, this could have been avoided if the £800m gap between the amount taken in by the Apprenticeship Levy, and the actual programme budget was plugged – or even by looking at an alternative funding model.”

The Association of Employment and Learning Providers (AELP) is a national membership body, proudly representing organisations operating in the skills sector. AELP members deliver a range of training and vocational learning – including the majority of apprenticeships as well as Skills Bootcamps, 16-19 Study Programme, Adult Education Budget and more.

For further information or interviews please contact Matt Strong, Communications Manager, AELP, on 07920 161685 or [email protected]