APP0117
Written evidence submitted by the Greater Manchester Combined Authority
2.1. The GMCA is a partnership comprising the ten Greater Manchester local authorities:
2.2 In Greater Manchester we need to be ambitious about the future of our work and skills system if we are to seize the opportunities that Devolution provides, capitalise on national changes and minimise the risk from reduced levels of Government investment. We also need to be realistic about the challenges we face and our baseline position. The opportunities and challenges are not uniform across GM and we recognise that there is a lot of good work at local authority level upon which we can build.
2.3 Apprenticeships form one of Greater Manchester’s 10 work and skills priorities seeking to increase the number, quality and level of Apprenticeships in core and growth sectors in GM via better CEIAG, employer workforce development and co-ordination of public sector activity in response to the Apprenticeship Levy. Apprenticeships also offer opportunities for re-skilling and up-skilling the existing workforce to support in-work progression and increase productivity. A GM Apprenticeship Strategy is under development to ensure all key partners are working towards the same outcomes.
2.4 The Greater Manchester Apprenticeship Hub brings together key partners and stakeholders involved in the apprenticeships agenda across GM. As part of this activity, an Apprenticeship Strategy for Greater Manchester is being developed and is leading on policy development as well as modelling and analysis linked to recent/ forthcoming national policies on this agenda. The Hub and GMCA therefore welcome the opportunity to contribute towards the Sub-Committee’s apprenticeships inquiry.
3.1. The target of three million apprentices by 2020 and the 'skills gap'
3.1.1 Greater Manchester is the largest city-based economy outside London. Our ambition is for Greater Manchester to become a financially self-sustaining city-region, sitting at the heart of the Northern Powerhouse with the size, the assets, the skilled population and the political and economic influence to rival any global city. Apprenticeship growth is a vital facet of achieving this ambition, both in improving human capital for business growth and as a mechanism for inclusion; as such, GM needs to develop effective ways to grow Apprenticeships across the city region. However, we also recognise that economic growth within many of Greater Manchester’s key sectors will come from increased productivity rather than more jobs. Accordingly, quality, progression and higher/degree level apprenticeships will be key not only to boosting productivity but to reducing the skills mismatch whereby a third of adults are either over- or under-qualified for their job role[1].
3.1.2 It is anticipated that approximately 1.7% to 2.4% of Greater Manchester’s employer base will be required to pay the Apprenticeship Levy; around 1500 to 2000 organisations. Initial estimates suggest this will equate to between £40m - £60m per annum paid in, together with the 10% top-up as announced in the recent Budget.
3.1.3 These organisations, and the changes in Apprenticeships, present a huge opportunity to provide high quality opportunities for GM’s residents whilst also developing their own workforce. However, in many cases they are not currently involved in Apprenticeships and need support to maximise their investment in Apprenticeships and benefit from the Levy and digital apprenticeship vouchers.
3.1.4 Greater Manchester has a significant in-work productivity challenge and we know that employers sometimes struggle to find the higher level skills they need to grow. In conjunction with this, there is mixed awareness and take up of Apprenticeships in the private sector. The Levy will provide opportunity and impetus to grow the Apprenticeship opportunities whilst meeting the skills and productivity gap within the private sector.
3.1.5 Although GMCA and the LEP will have little control over the way large organisations spend their digital vouchers (beyond specifying linked KPI’s in public sector procurement activity), there are opportunities to influence through the development of existing networks (such as GM Chamber of Commerce, Federation of Small Business and the NW Business Leaders) to create a GM support framework meeting employer needs.
3.1.6 Examples of where Apprenticeships can play a huge role can be seen in scrutiny of sectors’ future skills needs of sectors in GM. One such example taken from GMCA research is in Business, financial & professional services (BFPS), which is a dominant sector in GM and is forecast to grow quickly. It accounts for 22.1% of employment, adding jobs at a faster rate than in the rest of UK between 2010 and 2013/14; it also accounts for 29.1% of GVA. This represents one of the great economic opportunities for the city region and is critical the skills system can support this expansion, yet the BFPS sector contains some of the largest productivity lags with the UK of any economic sector. The sector is ‘graduate hungry’ and requires a high calibre of level 3 and 4 qualified residents to meet business requirements, yet only 49.9% of employees working in professional services in the North West have a level 4+ qualification (GM data unavailable) compared with 60.6% in the UK. Apprenticeships have a crucial role to play in shrinking this skills gap and we are starting to see examples within Greater Manchester of cultural shifts, with some financial organisations moving away from being graduate dependent for their talent pipeline towards driving degree level apprenticeships.
3.1.7 This example highlights the risk of mismatch between what the skills system delivers and the economic need. Most course starts in further education and training, as well as apprenticeships, are at level 2, while the need is at levels 3, 4 and upwards (often graduates). To meet the challenge, the skills system needs to be focussed on progression and on increasing skills provision to the upper ends of the skills spectrum. It is often the ‘associate’ level roles that are often the hardest to fill with applicants with the right skills (though wages may also play a part in recruitment difficulties). This type of change can and should be met by the Apprenticeship reforms.
3.1.8 We feel that achieving a numerical target is, therefore, no guarantee of closing the skills gap. Modelling undertaken around this target indicates that, in order to deliver Greater Manchester’s portion of the 3 million, we need more than 180,000 apprenticeship starts over the same period. This represents an increase on current activity of approximately 20% each year. This is a challenging target but potentially achievable. However, although this presents a huge opportunity there are risks within the system which jeopardise delivery of both elements of the dual ambition to increase quality apprenticeship take-up and to raise skills levels.
3.1.9 Firstly, additional investment is likely to be required, particularly to support organisations which employ apprentices aged 16-18 years and learners with complex/additional support needs. In the absence of such support, this target and associated policies (primarily the 2.3% public sector target as proposed within the Enterprise Bill), could result in short-term reactivity from employers who want to reclaim their levy payments rather than undertaking long-term sustainable, planned workforce development activity with apprenticeships front and centre. This risks a focus on high volume/low cost apprenticeships in order to meet numerical targets, rather than the higher level skills developed through Advanced/Higher/Degree apprenticeships which will add value and boost productivity. Inextricably linked to this is the fact that, for some employers, there will be a significant shortfall between the guaranteed apprenticeship funding which will be generated via the topped-up levy, and the cost of employing and training the number of apprentices they currently employ or aspire to employ.
3.1.10 Secondly, whilst the SFA has now announced that funding has now been identified to meet 16-18 apprenticeship and traineeship growth up to March 2016, feedback from colleagues within the local authority and provider networks has indicated that the recent fears about a lack of funding for 16-18 apprenticeship and traineeship growth in the current academic year may pose a serious and ongoing threat to achieving the 3 million target. We have heard that some high performing providers are unwilling to recruit additional apprentices due to the risk that growth would not be funded.
3.1.11 To ensure we meet our Apprenticeship targets, we also need to ensure that pathways to Apprenticeships (including Traineeships, study programmes and employment programmes) are mapped, supported and delivered whether through nationally funded routes or other employer led / sector specific alternatives.
3.1.12 Indications in the Government response to the Levy consultation suggested that they were considering whether the Levy pot could be used to support / fund Traineeships or other pre-apprenticeship programmes. Within GM we need to ensure that funding and support for pathways into Apprenticeships is available to provide residents, particularly young people, with sector specific apprentice-ready skills and experience.
3.1.13 We currently have a window of opportunity in which to engage employers in the apprenticeships agenda and to ensure that they are seeing the benefits of employing apprentices, prior to a potentially confusing transitional period when content and funding, including the level of employer investment required, will change. If employers are unable to source responsive, high quality apprenticeship training now due to providers’ uncertainty about whether or not growth will be funded, they may not be willing to re-engage at a later date.
3.2. The proposal for an apprenticeships levy and how this may be implemented
3.2.1 Levy payments in Greater Manchester will be an estimate £40-60m paid by 1500-2000 organisations. GM should aim to deliver more Apprenticeship training in GM than the value of Levy payments made. There is no other public funding for Level 3 and above workplace training (except via learner loans) therefore Apprenticeships are a good way to drive in work productivity (where there is an acknowledged concern) as well as a progression route for young people.
3.2.2 All large companies will want to get back the money they pay to the Levy – given there will be a limit on the amount they can spend on each apprentice there is a danger they will ‘badge’ existing staff as Apprentices. This is not a problem as long as it involves upskilling their existing workforce rather than accrediting existing skills.
3.2.3 A particular concern is non-GM headquartered organisations (such as banks & supermarkets) where the GM workforce will be generating the levy payment but the vouchers will go to the Head Office. GM needs to ensure it captures the value of this training activity back into the city region. If quality training opportunities and organisations do not exist in GM, companies will be forced to spend their vouchers outside GM.
3.2.4 High quality workforce development advice about the benefits of Apprenticeships via organisations like the Growth Hub needs to be available to GM companies to ensure they use their vouchers appropriately.
3.2.5 Within Greater Manchester’s public sector, Local Authorities will pay £8m and the Health sector approximately £12m to the Levy. For the public sector, consultation has recently concluded on the proposed additional target that 2.3% of the workforce must be apprentices; as yet there is no indication of how the complex public sector workforce, which contains a large number of part time staff, will be dealt with. The majority of local authorities have budgeted for the Levy payment, but in many instances this will not cover the costs of apprentice training (given there is a cap on spend per apprentice) to meet the 2.3% target resulting in potential further additional costs. The GM public sector needs to act together to maximise the opportunity of the Levy to drive a flexible and upskilled GM workforce.
3.2.6 GM public sector organisations may not be able to offer jobs to all their apprentices at the end of their Apprenticeships (given the 2.3% target and ongoing changes in the public sector). GM public sector organisations may therefore have to consider ways to guarantee Apprentices from any GM public sector organisation interviews for any relevant jobs post-Apprenticeship
3.2.7 GM public sector also has a key role in driving Apprenticeship activity in the private sector via the way it includes Apprenticeships and wider skills considerations in its procurement activity, alongside acting as an exemplar employer to ensure it uses the Apprenticeship Levy to drive workforce upskilling and progression.
3.2.8 There are however some concerns around some fundamental unknown details relating to the introduction of the levy. Some of these may be assuaged when additional information is released in April and June but in the meantime, with only 12 months until levy payments commence and the digital voucher system is launched, our concerns include (but are not limited to) the following:
3.2.9 We believe that it is essential that there is flexibility and discretion to act collectively across place-based public sector clusters in areas such as Greater Manchester, in order to enable a more ambitious approach in developing different models and maximising the opportunities presented by the levy, thereby adding value for both apprentices and employers. This would allow the public sector to become an exemplar of Apprenticeship employment, although more dialogue is required with central Government to explore if/how this could work in practice.
3.3. The institutional architecture of current provision and how this may be affected by the proposed Institute for Apprenticeships
3.3.1 Greater Manchester welcomes the proposals and set up of an Institute for Apprenticeships supporting the development of new standards, managing the process for approvals and maintaining the overview of quality. However, 2 key points must be under consideration:
3.3.2 Current provision across the city region is weighted heavily towards independent learning providers, with the majority of FE Colleges playing a much smaller role. The outcomes of the Area Based review alongside the Governments challenge to FE colleges to significantly increase the proportion of Apprenticeships they deliver must be carefully managed to ensure an overall increase in numbers rather than displacement of activity from ILPs to FE colleges.
3.4. Encouraging take-up among 16-18 year olds
3.4.1 Greater Manchester’s progression rate for young people going into apprenticeships is above the national average but more needs to be done, particularly in relation to ensuring consistently high quality CEIAG (particularly pre-16) educating parents about the benefits that an apprenticeship offers in order to counter out-dated views and misconceptions around apprenticeships. The availability of up-to-date labour market information is critical in order to show young people, parents and advisors where opportunities for employment and progression are and will be in the future. Better use must also be made of digital resources and technologies in order to help young people access the information they need.
3.4.2 In line with enhancing CEIAG and stimulating demand for Traineeships / Apprenticeships, we must ensure that individuals have the attainment levels that enable them to enter this type of learning. For example, Apprenticeship providers and employers generally show a preference for residents that have achieved at least Grade C in English and maths at GCSE level. Given the high percentage of 16 year olds who leave school without these grades more needs to be done to improve these grades not only at 16, but also for those older learners at 19+ who have not gained attainment of these grades through FE studies. In order to ensure that learners can progress into and within employment, we must focus efforts on the progression routes that are available to individuals – GM Apprenticeship Hub research is exploring best practice and the most successful routes in Apprenticeships where direct progression from school or college is not an option. Outcomes of this research will inform requirements across GM for different cohorts of young people. Pathways should be mapped, supported and delivered whether this is through funded Traineeship routes or other employer led / sector specific alternatives.
3.4.3 It is critical that employer engagement acts as a key element of ensuring that Apprenticeship and CEIAG provision meets the needs of GM’s current and future labour market. Apprenticeships have been seen to demonstrate an increase in productivity and can support workforce development and succession planning, as well as social mobility. Therefore, ensuring GM employer involvement in shaping a quality Apprenticeship offer and inspiring young people into this route is vital; Greater Manchester is part of the national roll out of the Careers & Enterprise Company’s Enterprise Adviser Network. Employer engagement is at the centre of this model of activity and will continue to be a key element of national investment and policy direction on this agenda. It is also equally important to ensure that providers have the capacity to engage with employers on a local level and Greater Manchester would look to explore this in more detail through the development of local Outcome Frameworks.
3.4.4 In order for those resources and services to have a solid foundation upon which to build, there is a serious and urgent need to effect cultural change within schools and to raise the profile and currency of apprenticeships in a way which meets the spirit and not just the letter of schools’ obligations. In addition to the front-line advice and guidance, of particular success within Greater Manchester has been involvement in the Better Choices, Better Outcomes programme, which is bringing about cultural change amongst school leaders and embedding the drive for high quality CEIAG, including apprenticeships, as a cornerstone of whole-school development and improvement.
3.4.5 To date, over 200 schools have benefited from a range of CEIAG projects supported by Greater Manchester’s City Deal (project descriptions attached at Annex 1):
3.5. The process of applying for apprenticeships
3.5.1 The current process for applying for Apprenticeships can be complex and confusing for young people managed individually by each provider and college. Although the NAS website provides a single point for application, the onus is on the individual organisations to pick up applications, respond to the young people and provide feedback. Capacity issues mean that this is not always fully undertaken and young people can be left unsure of the stage of their application.
3.5.2 In Greater Manchester, UCAS Progress through our ‘Search and Apply’ system is available in many schools, enabling young people to apply for apprenticeships at the same time as considering other further/higher education options. This simplified, embedded approach of aligning the applications process supports the cultural shift required to place apprenticeships on an equal footing with those other options, as part of the wider package of CEIAG activity across GM.
3.5.3 For employers, too, the process of arranging apprenticeships and redeeming their digital ‘vouchers’ through the Digital Apprenticeship Service must be employer-friendly and fit for purpose.
3.6. Routes for progression to higher qualifications for current apprentices
3.6.1 As noted above, within Greater Manchester we recognise that many of our priority sectors will rely on skills-driven productivity gains for growth. With this in mind the GMCA, via the Hub, has supported a programme of activity through City Deal to develop providers’ ability to deliver Advanced and Higher Apprenticeships. Key lessons coming from an evaluation of that programme of activity include:
3.6.2 There have been over 200 Advanced and Higher apprenticeships delivered through the GM City Deal project (at Dec 2015):
3.6.3 This must be borne in mind alongside lessons learned nationally about the development of new Apprenticeship standards. We welcome the new standards as having a real focus on the quality of provision and upskilling rather than just accreditation of existing skills, as this will be drive productivity and growth. The provider infrastructure will need support and development in order to deliver the new standards, which also offers an opportunity to explore innovative ways of developing the college/provider workforce.
3.6.4 In order to stimulate take-up of higher level apprenticeships, in we have looked at ways of using the devolved Greater Manchester Apprenticeship Grant for Employers (GM AGE) as an incentive for employers, with an additional £1,000 payment on top of the basic grant for eligible employers who take on higher level apprentices. In the first year of operation this incentive had a negligible impact, with only 1% of grants relating to higher apprentices. However, that may be due to employers not meeting other eligibility criteria such as the upper age limit (24 years) or the rule which precludes employers who have employed an apprentice in the preceding 12 months from receiving a grant. In order to address this, from 1 January 2016 the 12 month exclusion is being waived for eligible employers who are progressing an apprentice from Advanced to Higher level, although due to the data lag it is too soon to say whether this change will have a significant impact.
3.7. The quality of, and minimum standards for, apprenticeships, and how standards can be enforced
3.7.1 Quality in Apprenticeships is essential (more so than start numbers) to ensure the integrity of the Apprenticeship programme is maintained. They need to be seen as a viable and positive choice for people to develop their skills and start / re-model their careers.
3.7.2 Whilst OFSTED will continue to have a role to inspect providers’ delivery, they won’t measure against local priorities or inspect employer delivery. This suggests a role for local LEP designed quality measures through for example an employer Quality Mark, but infrastructures would need to be developed to monitor this.
3.7.3 Greater Manchester is currently exploring the opportunities for a GM Quality Mark based on a series of local measures to support the improvement of quality and gain further employer buy in to our ambition of all apprenticeships providing high quality learning, development and career progression.
3.7.4 In order to support quality GM has outlined within their devolution submissions the need for joint accountability between Government and GM.
3.8. Lessons from other countries’ approaches to apprenticeships
3.8.1 There are many varying international models for Apprenticeship programmes, and many reviews have taken place. Work needs to be undertaken nationally to ensure that the best practice is identified and built in to England’s programme and apprenticeship architecture around:
Annex 1:
City Deal CEIAG Projects
Project: Better Choices
Delivery organisation(s): CEL Leadership and Change
This project, which is now into its third year, aims to bring about cultural change within schools around the CEIAG agenda, focusing on strategic leadership and working with managers, leaders and front-line school staff to help achieve parity for apprenticeships as a progression route. As well as carrying out research and sharing good practice, the project delivers leadership development and training activities for school staff and governors to assist with longer term CEIAG planning, as well as developing resources and events for parents.
Project: Career Point
Website: http://www.careerpoint-gm.co.uk/
Delivery organisation(s): The Work Company
This is a virtual environment for GM-wide careers and labour market information and apprenticeships, delivered by Careers Solutions Professional Support Services. It has a section for use by members of staff in school or college working with young people which includes labour market information, CPD resources and professional discussion; an area for young people which includes information on the labour market, apprenticeships and careers; and a section for parents and carers wanting to support young people in planning their careers. Training is also available for staff in schools and colleges to help them achieve a baseline understanding of progression opportunities for young people.
Project: Engineering Futures
Website: http://engineeringfutures.org/
Delivery organisation(s): The Skills Company on behalf of Engineering Futures Partnership
Engineering Futures is currently working with 47 schools to develop Engineering & Manufacturing Partnership Clusters that bring together young people, parents, schools and employers in order to stimulate demand for and take up of apprenticeships, particularly advanced apprenticeships, within the engineering & advanced manufacturing sector. The offer includes sector-specific IAG, interactive events, inspirational speakers and ambassadors from the sector, and site visits/tours, and employers are being encouraged to challenge providers to ensure that provision meets their needs and supports succession planning across the sector. Following positive feedback from the first phase of activity this activity is being further developed and expanded to ensure coverage across all ten local authority areas within Greater Manchester, with additional Partnership and Career Clusters being established.
Project: GM Apprenticeship Ambassadors
Website: http://www.gmlpn.co.uk/apprenticeship-ambassadors.php
Delivery organisation(s): Manchester City Council/Greater Manchester Learning Provider Network
Who better to raise awareness of Apprenticeships than apprentices themselves?
The Apprenticeship Ambassador Programme is an information service for young people in Greater Manchester, utilising real apprentices’ first-hand knowledge to present the Apprenticeship route as a viable and successful route into a career. The Programme is also a development opportunity for apprentices to gain confidence, presentation skills, and to learn to promote the values and benefits of their organisation.
What is an Apprenticeship Ambassador?
As an Apprenticeship Ambassador, an apprentice will visit schools and colleges to share their Apprenticeship experiences with students. They will receive bespoke training to fulfil their role in inspiring the future workforce and will act as a strong Ambassador for both Apprenticeships and their own organisation. Over 250 young people have been identified and trained as Apprenticeship Ambassadors since the project began in 2013. Ambassadors have attended events at over 100 schools and colleges across Greater Manchester.
If you are an employer or training provider who would like to nominate an apprentice to become an ambassador please contact Matt Leigh on 0161 655 1508 or matthew.l@gmlpn,co.uk
If you are a school who is interested in booking an ambassador please contact Coral McFarlane on 0161 654 1508 or coral.m@gmlpn.co.uk
Project: GM Apprenticeship IAG Project
Delivery organisation(s): Positive Steps
This project provides dedicated and specialist information, advice and guidance to young people (aged 13-24 years), parents/carers and teachers on promoting and raising awareness of Apprenticeship pathways, particularly Advanced and Higher level Apprenticeships in key growth sectors. The project works in partnership with Career Point to incorporate labour market information into its offer, which includes a variety of options for schools and colleges including; Classroom- based Workshops, Assembly Presentations and Awareness Sessions for teachers and parents. The offer also includes the Key103 bus, a mobile unit which tours GM’s ten local authority areas and provides an IAG resource at events and school visits. It is a two year project run by a partnership which brings together all local targeted IAG providers, the Greater Manchester Learning Provider Network, and Key103.
Project: Inspiring IAG
Website: http://www.inspiringiag.co.uk/
Delivery organisation(s): Positive Steps representing the Inspiring IAG Management Group
Inspiring IAG is a careers education, information, advice and guidance (CEIAG) quality award, nationally validated by The Quality in Careers Standard (QiCS). It provides a good practice framework for organisations that work with young people, which includes schools, colleges, and other learning providers. The award recognises schools and colleges which have a CEIAG offer in place which is above and beyond national minimum expectations and in line with the agreed Skills and Employment Partnership Board priorities for improving CEIAG for all young people across Greater Manchester. It is designed to help schools by conducting an audit of existing activity and measuring its effectiveness against a number of specified outcomes, including ensuring that young people and their parents/carers are aware of Apprenticeships, Higher Apprenticeships and Traineeships as a post-16 and post-18 pathway.
The project is designed to:
Project: Search and Apply
Delivery organisation(s): Career Connect, Positive Steps and Greater Manchester Learning Provider Network
Career Connect, in partnership with Positive Steps and the Greater Manchester Learning Provider Network (GMLPN), are delivering Search & Apply, a system which will enable young people, primarily in Year 11, to search for all post-16 learning and training opportunities, including Apprenticeships, and to submit applications and expressions of interest to colleges, sixth forms and training providers in Greater Manchester via the UCAS Progress system.
This strong partnership, funded by the City Deal, is delivering a programme of activity in Greater Manchester which is:
Over 300 colleges, sixth form colleges, Apprenticeship providers and school sixth forms are now engaged in the Greater Manchester Search and Apply project. The project is designed to extend the use of the UCAS Progress system to support Greater Manchester’s strategic priorities for improving young people’s information, advice and guidance (IAG) and increasing the number of young people taking an Apprenticeship. As a result of the work undertaken to date 74 schools and over 9,000 young people are actively accessing the system.
Project: Greater Manchester Skilled & Ready
Website: https://www.skilledandready.co.uk/
Delivery organisation(s): Skilled & Ready
Employability skills are being developed but are not always recognised. Skilled and Ready (GM) is an embedded employability programme that aims to address this by helping students recognise and apply the skills businesses need. It offers a bespoke model for young people in Greater Manchester which helps them to identify, articulate and contextualise the employability skills they have for the purposes of applications and interviews, as well as developing a Skills Passport which pulls together evidence of their skills and work experience. The project also involves promotional work with employers so that they understand what it means when a young person has the Skilled and Ready award.
Projects which have now concluded:
Project: You Tell Us
Website: http://www.digitaldnamanchester.com/
Delivery organisation(s): The Manchester College
The Manchester College received funding to engage schools in a competition around careers in the digital sector. Around 100 pupils from nine schools took part and the competition was won by pupils from the Manchester Academy, whose ‘Digital DNA’ campaign was launched in 2015, encouraging young people and employers to get involved in apprenticeships as a route into careers within the digital sector.
March 2016
[1] Analysis of the UK labour market - estimates of skills mismatch using measures of over and under education: 2015, Office for National Statistics (17 March 2015)