APP0157

Written evidence submitted by General Motors UK

Question 1: The target of three million apprentices by 2020, how the Government proposes to achieve this and how this may affect the 'skills gap'?

1. We should recognise that while there is a target of three million apprentices by 2020 we should not hit this at the detriment of quality. In order to close the skills gap we should ensure the current and new apprenticeships are of high quality, providing training and education to a minimum standard of Level 2. This will help develop highly productive workforces for the future to ensure UK companies can grow and compete on the world stage. Companies should be able to take out of their levy pot all the money they need to cover the cost of apprenticeships particularly in Engineering as this is our main skills gap. If this were not to happen employers may not wish to hire Engineering apprentices as this will be an extra monetary burden to the business on top of the levy. Apprenticeships and the levy pot should also be recognised as not being bound to a certain age group, the skills gap has been identified in industries and subjects where we lack knowledge and skills. In order to close this quickly companies need to train employees of all ages otherwise we will end up with a trickle effect where the gap is not closed for many years until the old workforce has retired. 

Question 2: The proposal for an apprenticeships levy and how this may be implemented?

2. The apprenticeship levy offers companies a good opportunity to establish a high quality apprenticeship with a solid framework. Although this levy applies to all companies with a payroll of over £3million this should be rolled out to companies with the smallest number of employees/apprentices first. This will give the system controlling the digital vouchers time to embed and work with a fewer number of employers and apprentices first before being rolled out to the larger companies where volumes and stress on the system will be greater. There is still uncertainty over how long a company will be able to ‘hold’ their levy before it is distributed to SME’s. In order for companies to establish a sustainable apprenticeship programme which flourishes long after this parliament they should have sole access to their levy for a minimum of 2 years.
    

Question 3: The institutional architecture of current provision and how this may be affected by the proposed Institute for Apprenticeships?


Question 4: Take-up of apprenticeships amongst 16–19 year olds and steps that can be taken to make more young people aware of available opportunities?

3. The challenge is to make apprenticeships as well regarded as going to University and studying for a degree. With the levy allowing companies to find appropriate candidates for their apprenticeships this will drive up advertising and marketing on apprenticeships and make young people more aware of the opportunities available outside of the natural route to University. Websites such as Rate My Apprenticeship offer young people a fantastic platform to find out about a wide range of apprenticeships on offer from 100’s of different employers. Although there is a National Apprenticeship week (NAW) to celebrate apprenticeships this would be better held in early January if not before Christmas when students are starting to look at Universities and go to careers fairs to subsequently go through the UCAS process. By the time NAW happens it is often too late for students to change their mind. Apprenticeships should be positioned as a natural route from GCSE or A level. Advanced apprenticeships offer qualifications of equal standard to degrees while also earning a salary, this should be used more as a favourable reason to choose an apprenticeship over a degree.

Question 5: The process of applying for apprenticeships?

4. It would benefit all people applying for apprenticeships (and help government to track applications and vacancies) if all vacancies were initially applied for via the NAS portal. We could also use this as a ‘clearing’ system for applicants who weren’t successful at one employer but might be suitable for another.
    

Question 6: Routes for progression to higher qualifications for current apprentices?

5. Depending on whether a student joins an apprenticeship after completing their GCSE’s or A levels should be the deciding factor on what level course they start on as part of their apprenticeship. Colleges which work closely with companies have good natural routes to progression e.g. from a Level 3 Business and Administration course, to a HNC in Business then a HND in Business. This provides apprentices with continuous learning development which they can then apply when they are in work.

6. After 3 years of an apprenticeship an apprentice has a good understanding of the business they work in and areas of interest. At this stage they hone in on a particular function which they want to carry on developing in. It should be now that they decide whether higher qualifications are right for them and necessary for their career path.
   
    

Question 7: The quality of, and minimum standards for, apprenticeships, and how standards can be enforced?

7. The levy needs to encourage those skills which our country lacks, apprenticeships in areas such as engineering should be encouraged with additional funding available for such expensive courses.  Sustainable apprenticeship programmes should be encourage to ensure England builds workforces which can compete with that of Europe and the rest of the world.

8. The Government could suggest courses, modules of importance and recommend training providers to ensure high quality training and relevant content is learnt.  Analysis from the sector skills gaps should also be used to quantify this analysis.

9. There should be no ceiling on the quality of the apprenticeship, more a floor. Ensuring that education is provided to at least a Level 2 standard will help to set that floor. If employers decide to train to a lower level then vouchers are not exchanged/accepted by the training provider.

March 2016