"Appy birthday
Friday was the first birthday of the apprenticeship levy, with a
veritable fiesta of events to mark the occasion. However, the
government’s target of three million starts by 2020 looks seriously at
risk, despite claims that all is going “as planned”.
Challenges include demonstrating the benefits to prospective applicants
and their families, meeting employer needs, and delays getting new
apprenticeships approved. One major employer, IBM, described the process
as “incredibly difficult” with “bizarre decisions” and “not a good
experience at all”. That same employer also said they have “shifted away
from graduates ... which is possibly an unintended consequence".
There are also issues in demonstrating the returns to firms of taking on
apprentices – simulations published by the Education Policy Institute
to estimate the costs and benefits suggest that most firms would only
break even if apprentice pay is close to minimum wage, and that
higher-level apprenticeships taken up at a later age could offer lower
returns for both apprentices and their employers.
From a standing start, many universities are starting to offer degree
apprenticeships, which Gerry Berragan of the Institute for
Apprenticeships said he was supportive of. He also said management
degrees are a "perfectly respectable" way to use levy funds and address
productivity challenges.
Time will tell if the government, the post-18 review, and OfS can create
a coherent, system-wide offer that includes different routes and
levels. With unspent levy funds and stubborn skills gaps, it’s likely
that more enterprising HEIs will continue to seize this opportunity."
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