COVID-19 and Social Mobility Impact Brief #3: Apprenticeships
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RESEARCH BRIEF MAY 2020
COVID-19 and Social Mobility
Impact Brief #3: Apprenticeships
Katherine Doherty and Carl Cullinane
KEY FINDINGS • Around a third (31%) reported that they were likely to
hire fewer apprentices over the coming year, or none at
• The COVID-19 health crisis is having significant
all.
impacts on apprentices, their employers and learning
providers. Companies are furloughing or making staff • Firms worried about their ability to survive the crisis
redundant, off the job learning has been disrupted, and were more likely to say their apprentices were unlikely
apprentices, already on low pay, have faced additional to resume, and more likely to cut future apprentice-
financial strains. ship recruitment. Half of such businesses reported they
would be recruiting fewer apprenticeships, or none at
• Many young people from disadvantaged backgrounds
all. This picture is likely to have worsened since April.
undertake apprenticeships. They are more likely to be
concentrated in apprenticeships at lower levels, be paid • Apprentices themselves are encountering significant
lower salaries, and work at smaller companies. challenges. 37% of surveyed employers reported that
some of their apprentices were not able to work from
• Going forward, employers are unlikely to be recruit-
home due to a lack of equipment, or because their role
ing apprentices in the numbers we have seen recently,
was not suitable for such work. A further 14% said
meaning there will be fewer apprenticeship vacancies
some apprentices could not access learning from home
available for young people to access and more competi-
due to a lack of internet or devices.
tion for the fewer opportunities.
• Employers are encountering a variety of issues with
• In the first half of 2019/20, apprenticeship starts
their apprentices. A quarter (24%) of employers sur-
were already down by 7% on last year and we expect
veyed reported that a learning provider had closed, with
these to drop significantly further for the rest of the
16% reporting that a learning provider had been unable
year.
to continue provision for other reasons. While 16% said
• As of early April, employers surveyed reported that on apprentices had been redeployed to other ‘keyworker’
average just 39% of apprenticeships were continuing roles in the business, 29% reported that their appren-
as normal, with 36% having been furloughed and 8% tices did not yet have the skills for such redeployment.
made redundant. 17% of apprentices had their off-the-
• With young people now not in school or college to
job learning suspended.
access face to face career guidance or able to attend
• On average, these employers felt that 81% of their networking events or work experience opportunities it
apprentices would return to their course once economic will be harder for disadvantaged young people to access
restrictions were relaxed. 58% were confident all their high quality information and skills needed to secure an
apprentices would return, while 17% reported that apprenticeship.
fewer than half of their apprentices would resume.
INTRODUCTION made redundant, being furloughed to increase again. We know that
or experiencing breaks in learning, careers guidance for young people
The COVID-19 pandemic has
with a minority of apprentices able interested in apprenticeships is
caused complex challenges across
to continue their apprenticeships as already inconsistent1 and young
the apprenticeship landscape. The
normal. For those apprentices who people are now navigating this
unique position of apprenticeships
have been able to continue their complex landscape without face to
– which combine education, training
learning, this has moved online, face support from their schools or
and employment - has made the
raising further issues: Not all will colleges, while closures continue.
sector particularly vulnerable to
have equal access to required This could potentially put this
the current health crisis. Impacts
devices, internet access or a suitable year’s school leavers at more of a
on training providers and access to
home learning space, leaving them disadvantage to those who are older
learning are being compounded by
unable to access training. and have more knowledge of where
the profound impacts on employers
to find and successfully access
and the economy. Some apprentices,
On top of this, apprentice recruitment vacancies. Sutton Trust polling of
particularly those working in the
is being put on hold, with no clear young people in Year 13 has shown
sectors and industries most adversely
idea of when opportunities will start that they feel career and education
affected by COVID-19, are being
1advice has particularly suffered apprentices, to help ensure all young apprentices at large. Employers
during lockdown in comparison people, no matter their background, surveyed reported that, on average,
to the support they have received continue to have the opportunity just 40% of their apprentices
for learning.2 Schools are carrying to both access and succeed on an were continuing as normal, with
a significant burden at this time, apprenticeship. the remainder of apprenticeships
and addressing the basic needs disrupted in some way. 43% of
of their pupils is inevitably taking respondents indicated that none
precedence.
IMPACT ON APPRENTICES of their apprentices had been able
Considering the uncertainty caused to continue as normal, while 28%
However, as the impacts of the by the pandemic, both current reported that all of their apprentices
pandemic on the economy develop, and future apprentices are likely were able to do so. Employers on
the importance of apprenticeships as to need more support than before. average were furloughing 36% of
a model for education and training Many apprentices have been made their apprentices, though in some
is only going to increase. A skilled redundant. Others are facing a cases this was much higher. 30%
workforce will be more important decrease in wages due to being of employers indicated that they
than ever to rebuild the economy and furloughed, whilst also experiencing were furloughing more than three
apprenticeships offer opportunities barriers to their learning provision quarters of their apprentices. On
to those out of work to retrain or with many unable to continue average employers reported that
learn the skills that will be needed training. For future apprentices they 8% of their apprentices were being
when the pandemic subsides. This will be missing out on crucial face made redundant, though only 26%
makes it vital that every effort is put to face information and guidance of employers had needed to make
in now to ensure that all parts of through schools and colleges. Even at least one redundant. Some
the apprenticeship supply chain can if they can navigate the landscape apprentices however had remained
continue into the future – and the independently, they will be faced with in their jobs, but off-site learning
progress made in recent years is not a diminished numbers of vacancies, had been suspended, either due
lost. making them even more competitive to a provider shutting down, or
to access. the apprentice being unable to
In our Better Apprenticeships access remote learning. On average
research, we explained that In early April we surveyed senior HR employers reported that 17% of their
since the age-based funding decision makers across the country apprentices fell into that category.
rules were relaxed in 2006, the to gauge the impact of the pandemic Figure 1 shows the average proportion
apprenticeship programme has on apprentices.5 While the number of apprentices reported in each
been largely adult based, with the of companies employing apprentices category by employers, along with the
majority of apprentices over 19 in the sample was relatively small distribution of reported percentages.
and many aged 25 and above.3 (around 150), the responses paint For example, it shows that on
Many of these apprentices are also a picture that is indicative of the average employers reported 39% of
existing employees rather than challenges faced by employers and their apprentices were continuing
new starters. This is important to
bear in mind in light of the survey
Figure 1. Average proportion of apprentices reported by employers in each status,
evidence below. In the 2018-19 along with distribution
evaluation report, around six in ten
apprentices already worked for their
100%
apprenticeship employer before
starting their apprenticeship.4 The 90%
vast majority (88%) of apprentices
who were 25 and over were already 80%
employed before their apprenticeship, 70%
compared to 50% of apprentices
aged 19-24 and 29% of apprentices 60%
aged 16 – 18. Now COVID-19 is
50%
exacerbating the disadvantages 39%
already facing young people seeking 40% 36%
apprenticeships.
30%
This report is the third in a series 20% 17%
of impact briefs released by the 8%
10%
Sutton Trust in response to the
COVID-19 pandemic, looking at the 0%
implications of the current crisis Continuing as normal Furloughed Off-site learning Made redundant
on apprenticeships, with a focus on suspended
young people from less advantaged 100% (i.e. all) 75%-99% 50%-74% 25%-49%
backgrounds. The brief will look at 1%-24% 0% (i.e. none) Mean
how employers, training providers and
government can lessen the impact
Source: YouGov HR decision makers omnibus for the Sutton Trust, April 9th-16th
of the crisis on current and future
2as normal, there was substantial Figure 2. Proportion of apprenticeship starts 2018/19, by apprenticeship level and
variation: 43% of employers said Index of Multiple Deprivation quintile
none of their apprentices were, with
28% saying all of their apprentices. 30%
27%
26%
From a social mobility perspective, 25%
we know that apprentices from 21%
lower socio-economic backgrounds 20%
are clustered in lower return and 20% 18%
17%
lower level apprenticeships. In
14%
2018-19, 43% of all apprentices 15%
13%
were in the two quintiles with
the highest deprivation, around
10%
167,500 apprentices. 84% of
these apprentices were clustered
in intermediate (66,500) and 5%
advanced apprenticeships (73,700).6
Figure 2 shows the breakdown 0%
of deprivation by apprenticeship Intermediate Advanced Higher Degree
level, with intermediate (level 2)
apprenticeships and degree (level Q1 (most deprived) Q2 Q3 Q4 Q5 (least deprived)
6 and 7) apprenticeships forming
mirror images of each other. The Source: DfE FE data library - Apprenticeship starts by indices of multiple deprivation
former is dominated by those from
more deprived areas, and the latter experience than colleagues who were wherever possible. Although some
by those from less deprived areas. existing employees in a business, they providers will be using distance-
There are twice as many degree level may be considered more disposable learning tools, for others this will not
apprentices from the wealthiest areas by employers having to make be possible for a range of reasons. If
as there are from the poorest. cutbacks. the technical system was not already
in place, apprentices, especially those
Higher level apprenticeships, typically Apprentices concerned that they from lower income backgrounds, may
undertaken by those who are older or are more at risk of redundancies, not have the equipment, access to
more affluent, as explored in greater while balancing a significant internet or a suitable home learning
detail in the degree apprenticeship change in their working practices space. In our survey 37% of these
report that accompanies this brief,7 may also affect their mental health employers reported that some of
are more likely to be with larger and wellbeing. The level of support their apprentices were not able to
employers. they will need both now and once work from home due to a lack of
they begin to re-integrate back into equipment, or because their role was
Conversely, younger apprentices from the workforce should be carefully not suitable for such work. A further
lower socio economic backgrounds considered and implemented. 14% of employers asked said they
are more likely to have been in had apprentices who could not access
sectors which have been vulnerable in Access to training and learning from home due to a lack
the crisis, for example the hospitality assessments of internet or devices with which to
sector. 21% of small employers access learning.
COVID-19 has led to a variety of
surveyed rated themselves as unlikely issues surrounding apprentices’
or unsure they would survive the Even if an apprentice does have the
ability to access training and access, tech and skills needed, the
crisis, compared to 14% of large assessments. The government’s
employers. training provider may not. While
training guidance for apprentices IT contractors or the apprentice’s
reiterates that employers can use employer could potentially help
Newer apprentices may also be at the job retention scheme for their
more risk from the current crisis here, they may be overwhelmed
apprentices and confirms that with demand at a time when they
as they have only just started their apprentices can continue their
apprenticeships and may not have are likely to not have a fully staffed
training whilst furloughed.9 This is team, or it may come at a cost the
developed the skillset needed to a positive move, and employers are
redeploy to other roles. In fact, 29% provider is unable to fund. Initially
clearly taking advantage of this, but some providers were furloughing
of employers reported that their every employer may not be aware that
apprentices did not yet have the staff, which meant that even if all
apprentices can continue or begin these barriers were overcome, there
skills and training to be redeployed their apprenticeship training whilst
into other roles they would have may not have been the teaching staff
furloughed, which may need to be needed to deliver the training. This
liked to fill. Many of those in higher emphasised more.
apprenticeships, by contrast, are was supported by our survey, with a
current employees rather than new quarter (24%) of employers reporting
The Department for Education that a learning provider had closed,
starters.8 As newer apprentices are (DfE) has encouraged training and
likely to have lower levels of skills and with another 16% reporting that the
assessments to be delivered remotely
3learning provider had been unable to
Figure 3. Median hourly pay for apprentices in 2018/19 by apprenticeship level
continue provision for other reasons.
The provider relief scheme being
implemented may now have started £12.00 £11.07
to address this barrier for eligible
providers, as some will be in a better £10.00
financial position to bring staff back
to deliver the government funded £8.00 £7.65
provision.
£5.90
£6.00
In mid-April the Association of
Learning Providers (AELP) found
that 43% of the providers they asked £4.00
were managing to train apprentices
and other learners at between 80 £2.00
and 100% of their pre-pandemic
capacity. For providers to have put £0.00
in place digital learning so quickly, Intermediate (level 2) Advanced (level 3) Higher and degree (level
whilst experiencing the loss of 4+)
funding that may have come with
some apprentices being put on a Source: 2018/19 Pay Survey
break in learning, is a considerable
achievement.10 Financial impacts been made redundant or put on
breaks in learning. It will also not
Many apprentices are likely to face
If apprentices are ready to undertake support the majority of apprentices as
financial difficulties in the coming
their end point assessments it is they will not be doing enough training
months. While apprentices can be
being encouraged that these happen to be in excess of their furlough
furloughed, for many their wages are
remotely, wherever possible. The payment.
already low, so they may struggle to
Chief Executive of the Institute cope on levels any lower than they
for Apprenticeships and Technical The government should widen
already receive. Even before the
Education (IfATE) Jennifer Coupland this minimum wage requirement
current crisis, many apprentices
has backed this, saying there should to include all usual weekly hours,
were struggling financially.14 Since
be a “significant shift” towards online not just those spent training. It is
April 2020 the minimum wage for
assessments, but acknowledging vital that the financial security of
apprentices under 19 and those in
there will be challenges ensuring apprentices already on low wages is
their first year is just £4.15 per hour,
quality, which is a concern not just protected, both by government and
and in the most recent 2018/19 Pay
for the apprentice but the sector employers themselves.
Survey among Level 2 and Level 3
as a whole.11 There have been apprentices in England, the median
estimates that only 40% of current basic pay was just £6.95 an hour.15 IMPACT ON TRAINING
frameworks or standards could be Given the low levels of pay for PROVIDERS AND EMPLOYERS
assessed remotely,12 with worries that apprentices, and the high proportion
variation between external quality Funding for training providers
citing financial difficulty on their
assurance providers could lead to current wages, many are likely to face All providers who deliver
diminishing consistency across the significant financial challenges if this apprenticeship training, whether
system. The IfATE has tried to ease is reduced. they are colleges, independent
these worries by stating that External training providers or universities
Quality Assurance (EQA) providers The government have announced will be facing challenges during this
have now agreed assessment plans that furloughed apprentices must crisis. The government have already
to be rolled out remotely for over 50 be paid at least the appropriate implemented several measures
apprenticeship standards and that minimum wage16 for all the time they to limit the damage and allow
around 300 of the 538 standards spend training.17 For the majority of apprenticeships an opportunity to
approved for delivery have no end apprentices their furlough payment continue.
point assessment due in the coming will be sufficient to cover the training
months. However, AELP also found hours being paid at their appropriate Breaks in learning for up to 12 weeks
that a third of apprentices now minimum wage. Where there is a can now be actioned by the provider
have less than a 1 in 5 chance of shortfall between the time spent or employer, whereas previously it
completing their programmes in the training (which they have to be paid was only the apprentice who could
expected timescale13 which could minimum wage for) and the amount initiate a break in learning. However,
have a direct impact on apprentices of their furlough payment, the any such break in learning raises
gaining pay rises or promotions they employer has to top it up. issues for everyone involved. For
may have been anticipating once apprentices, learning being put on
completing their apprenticeship. While this was welcome news for hold and assessments being delayed
some apprentices, it may have come could lead to some not returning and
too late for some who have already subsequently not completing their
4apprenticeship, as well as delays to is ineligible, reducing further the Problems encountered by
promotions and pay increases. For amount that providers can claim employers
training providers, the government through the scheme. The extent of
guidance confirms that they will ineligibility for this relief is of serious Apprenticeships would not be
continue to be paid for the training concern. possible without employers, and
they have delivered and can evidence, they have a bigger input than
but this payment will be made Providers ineligible for this scheme ever before in the development
retrospectively.18 TProviders will have been encouraged to consider of apprenticeships. Employers
not be paid for learners who are on their eligibility and apply for the throughout the economy are currently
breaks in learning, which could lead financial support already announced battling for survival and we found that
to some coming under significant for businesses21 but only 4% have 10% of apprenticeship employers
financial strain, with the potential of successfully received a Coronavirus surveyed rated their business as
some collapsing altogether. Business Interruption Loan.22 It is unlikely to survive the Covid-19 crisis,
crucial that training providers are with a further 5% unsure. 85% said
The DfE has now confirmed that still standing at the end of this their business was likely to survive,
some apprenticeship training crisis in order to play a key role in slightly higher than employers not
providers may be eligible for support supporting the economic recovery employing apprentices (80%).
under the Cabinet Office’s supplier post-outbreak. However, the longer For employers who do not survive
relief scheme to ensure some service providers do not receive funding the pandemic, their apprentices
continuity.19 This will provide targeted the less likely it is they will be in a are left to find a new employer to
financial relief. However, concerns place provide the training that will complete their apprenticeship. This
were immediately raised that many be desperately needed. At the end of is a hard ask: at such a challenging
providers will miss out on this March AELP found that 83% of their time for the economy it is unlikely
support, specifically those whose training providers were furloughing employers will be in a position to
funding comes through levy contracts employees, with consequent impacts take on apprentices and for those
with employers, rather than direct on delivery.23 In April they warned who are taking on apprentices who
funding through the Education and that a quarter of providers rated their have partially completed their course
Skills Funding Agency (ESFA).20 FE chances of surviving the crisis at elsewhere is likely to be challenging.
Week found 593 current providers less than 50-50.24 This could have
that have received non-levy funding serious and immediate impacts on Employers are having to make tough
this year amounting to £690 million, apprentices. AELP have reported choices to survive and may see
with over a thousand providers an estimated 52,000 apprentices apprentices as an easier option to cut
using levy funding which will not be could lose their apprenticeship back on, especially newer apprentices
supported through the scheme. It was due to providers potentially closing who potentially do not have the
also clarified that any apprenticeship down, with another 60,000 adversely training or experience to redeploy to
funded via an employer transfer affected by mothballing.25 other roles. While 16% of employers
Figure 4. Problems encountered by apprenticeship employers during the COVID-19 health crisis
Apprentices are unable to work from home (e.g due to a
lack of equipment or access or because the role isn't 37%
suitable)
Our apprentices do not yet have the skills and training
to be redeployed into other roles that we would have 29%
liked them to work in
The apprentices learning provider has closed 24%
Apprentices have been redeployed to key worker roles
within the business, so the work is no longer relevant to 16%
their apprenticeship
The apprentices learning provider has been unable to
continue provision for other reasons (i.e. excluding 16%
closing)
Apprentices are unable to access distance learning (e.g
they do not have access to internet or appropriate 14%
devices)
Not applicable - my company has not faced any
challenges with our apprentices since the Coronavirus 17%
(COVID-19) outbreak
0% 5% 10% 15% 20% 25% 30% 35% 40%
Source: YouGov HR decision makers omnibus for the Sutton Trust, April 9th-16th
5said apprentices had been Figure 5. Proportion of apprentices expected to resume studies by employers, by size of
redeployed to other ‘keyworker’ company
roles in the business, 29%
70%
reported that their apprentices 62%
did not yet have the skills for such 60%
redeployment (Figure 4). 52%
50%
Unsurprisingly then, we have
already seen apprentices 40%
experiencing redundancies. The
government said that apprentices 30%
made redundant are to be
20% 14%
supported to find a new employer 13%
10% 11%
within 12 weeks. However, it 10% 7% 8%
5%
appears to be the responsibility 2%
0% 2%
of training providers to ensure 0%
this happens, which is likely 0% (i.e. 1% - 24% 25% - 49% 50% - 74% 75% - 99% 100% (i.e.
to be extremely challenging for none) all)
them to do so successfully in SME Large
the current economic climate,
alongside many providers having to
Source: YouGov HR decision makers omnibus for the Sutton Trust, April 9th-16th
furlough staff or close completely.
The 12 week timeframe should be
kept under review and extended
if necessary, as 12 weeks in the Figure 6. Anticipated number of apprentices hired in the year following the COVID-19
current circumstances is not a long outbreak, compared to the year before
time to find a new role. The ESFA
may step in if a significant number 40% 37%
of apprentices are made redundant
in one instance to offer ‘practical 35%
support’ – but it is unclear what this
30%
support would be.26
25%
Employers are also facing a
multitude of challenges surrounding 20%
maintaining and progressing their
current apprentices. Just 17% of 15% 12%
11% 12%
the HR leaders we asked reported 9%
10% 8%
that they had not faced any
challenges with their apprenticeship 5%
programme since the outbreak, and
since the survey in mid-April it is 0%
likely this may have reduced further. Much more A few more About the A few less Much less None
same
So far, we have seen 60%
of employers stop all new
Source: YouGov HR decision makers omnibus for the Sutton Trust, April 9th-16th
apprenticeship starts,27 and
with so much uncertainty this
is unlikely to improve in the near ensure barriers can be broken down traction and recognition, and we
future. September is the next and young people are equipped to have been hearing more about
peak in the year for apprentice access competitive apprenticeships. positive apprenticeship experiences,
starts so it is vital that that where As part of this, the Sutton Trust is increasing awareness of a valuable
employers can, that they continue launching its first apprenticeship route into the workplace. However,
the recruiting and on boarding of summer school. This will be delivered the pandemic risks this progress.
apprentices. With the decrease in digitally this year to ensure we are During a significant economic
apprenticeship vacancies, they will providing information and guidance downturn, they may seem an easier
become even more competitive and around apprenticeships at a time option for employers to cut, and
difficult to access. We know that less when young people are missing out employers may become less willing
advantaged young people already on face to face outreach. to invest in them in the short-term.
face barriers in accessing higher level The resilience of the apprenticeship
apprenticeships and this is likely to system will undoubtedly be tested in
PROSPECTS FOR RECOVERY the coming months.
worsen.28 It is more essential than
ever that employers are reaching out In recent years, apprenticeships
to disadvantaged young people to have been gaining increased Making the case for the economic
6value of apprenticeships is crucial
Figure 7. Anticipated number of apprentices hired in the year following the COVID-19
at a time like this. As employers outbreak, compared to the year before, by size of company
recover from the economic
consequences of COVID-19, 70%
63%
their initial priorities may not
involve recruiting apprentices. 60% 54%
Currently there are just over
6,000 apprenticeship vacancies 50%
being advertised on the Find An
40%
Apprenticeship website, with 52% at 33%
intermediate level, 44% at advanced 29%
30%
level and only 3% for higher and
degree level apprenticeships. The 20%
sharp drop in employers taking on
new apprentices29 and the already 10%
high dropout rates30 for apprentices
look set to rise even higher. Some 0%
apprentices will have been made More or the same Less or none
redundant, some breaks in learning
may lead to apprentices not SME Large
returning, and some apprentices
may not be able to survive on low Source: YouGov HR decision makers omnibus for the Sutton Trust, April 9th-16th
furloughed wages meaning they may
elapsed, including 58% saying that hiring. While 61% of those likely to
try and seek alternative employment.
all apprentices would continue. 17% survive rated themselves as likely to
reported that fewer than half of their hire the same or more apprentices,
COVID-19 has shone a light on
apprentices would return. On average, for those worried for their future,
certain sectors such as health
the employers reported that 81% this was 44%. There were also
and social care, engineering and
of their apprentices would resume. some differences by the size of the
technology, influencing public opinion
We will have to wait and see if this company (Figure 7), with larger
towards how essential vocational
surprisingly positive outlook plays out companies appearing to show greater
routes are in developing future talent.
as anticipated, but the figures are resilience in anticipating to hire
If employers are to recover and
likely to reflect the high proportion apprentices at the same or higher
thrive going forward, new skills and
of apprentices which are existing rate.
ways of working will be crucial. This
employees. Apprentices employed
provides an important opportunity for
development through apprenticeships.
as new starters are likely to be more DISCUSSION: POLICY
vulnerable.
Flexibility and a new set of skills may IMPACTS
be required to thrive in the post- The apprenticeship sector is in the
The perceived likelihood of survival
pandemic workplace, and businesses midst of a profound challenge, with
for a company obviously influences
could use their levy allowance to the crisis having severe impacts on
perceptions of the future for their
build capacity by upskilling current employers, providers and apprentices
apprentices. While 69% of those
staff or taking on new apprentices, themselves. As is being seen across
who felt likely to survive reported
who are keen to develop new skills. society, the virus is exposing and
than more than three quarters of
In particular, employers should be exacerbating existing inequalities. In
apprentices would resume, this
encouraged to significantly focus the case of apprentices, it is those
was just 44% for those who rated
on supporting young people into from disadvantaged backgrounds who
themselves as unlikely.
apprenticeships, as we know that are most vulnerable. They undertake
they are likely to particularly suffer lower level apprenticeships, are paid
Employers were also asked about
in the coming months and years. less, are more likely to be recent
the prospects for future hiring for
Leaving education or training in the starters, and are most likely to
the next year (Figure 6). Again there
middle of a recession and suffering struggle to access remote learning. As
were some signs of optimism. 31%
unemployment leaves scars that competition for fewer apprenticeship
of companies said they were likely
continue throughout a young person’s vacancies increases, the potential
to hire fewer apprentices over the
career.31 It is vital that we do for apprenticeships to drive social
coming year than before the outbreak,
everything we can to avoid these scars mobility is likely to be seriously
or none at all. However, a significant
for the ‘Covid Cohort’.32 affected.
proportion of companies reported
they were likely to increase their
In our employer survey, HR decision It will be essential to monitor closely
apprentices (20%). 37% said they
makers were cautiously positive about the affect the pandemic is having on
would hire about the same, the most
their current group of apprentices apprentices. It has been promising
common response.
(Figure 5). 65% of respondents to see the IfATE asking apprentices
felt that more than three quarters for comments on the impact
Worries for the viability of the
of their apprentices would resume that Covid-19 is having on their
company again impacted anticipated
their studies once restrictions were learning in their recent satisfaction
7survey.33 But to complement the the economic recovery. unsustainable. It is vital that the levy
apprentice voice, the publishing is refocused on providing genuinely
of key data around apprentice Even before the pandemic, new opportunities for young people,
starts, participation, completion the expansion of higher-level and those who would benefit most
and breaks in learning is essential. apprenticeships that were going to from upskilling, and not becoming
The intial apparent cancellation of older, potentially existing employees a vehicle for subsidising training
regular apprenticeship statistics was questioning whether one of the for senior employees. Employer ‘top
was of concern. The publication of core objectives of providing young ups’, where employers are required to
as much information as practicable people a good quality training route pay a certain percentage of training
will allow transparency as to how the into their chosen career was being costs for certain types of apprentice,
situation is developing, which is vital met. Now more than ever employers for example those who are older,
information for everyone involved in should be focusing their attention are already well-paid, or already
the apprenticeship sector. on young people and new starters have an equivalent qualification,
as we know they will be severely could help both to relieve pressure
That is not to say however that there affected by the impact of COVID-19 on funds, while also incentivising
is nothing that can be done. But on the economy. The government apprenticeship provision in areas
many of the challenges facing the should direct the focus of the limited where it could have greater benefit. A
sector will require all players in the apprenticeship vacancies towards maximum salary ceiling should also
apprenticeship landscape to work young people and promoting social be considered, ending the practice
together. The primary goals should mobility. of levy funds being spent on highly
be to ensure current apprentices remunerated senior staff.
can complete their apprenticeships, With young people now missing out
and young people are still able to on face-to-face information and The potential of apprenticeships
access and acquire high quality guidance, apprenticeship open days to offer social mobility, to increase
apprenticeships in the future. and direct opportunities to interact opportunity and to deliver the skills
with employers, digital programmes needed by the economy remains
Even small changes can have have a huge part to play to ensure undimmed by the virus. With focused
substantial impacts. More should they are informed about their future effort, the apprenticeship programme,
be done to highlight to employers decisions. Outreach work should which has made so much progress in
that furloughed apprentices can not be stopped but transitioned to recent years, cannot just survive, but
continue to carry out training where digital delivery where possible. Now help to offer a way out of this crisis.
possible. This could help to address is not the time to let up on widening
issues across the board. The more access to opportunities, as those
hours of learning an apprentice can opportunities become more valuable
complete whilst furloughed, the more than ever but harder and more
hours they are then entitled to the competitive to access.
appropriate minimum wage, meaning
they do not have to survive on even In the context of an economic
lower wages than normal. It also downturn, the prospects for the
enhances their chances of completing apprenticeship levy, already under
their apprenticeship in the expected strain, look even more difficult.
timeframe or reduces the delay they Levy contributions are likely to go
may face. down as company turnovers drop,
putting an even greater pressure on
Protecting training providers is also the funds available for providing
of paramount importance. Continuing apprenticeships, both for levy
training would ensure training paying employers, but also small
providers are receiving an income and medium employers who don’t
and put them in a better situation pay the levy, but rely on government
to survive the crisis. Where this funding for their apprentices. As our
isn’t possible, providers in danger report on degree apprenticeships
of folding should receive further highlights, there are significant
support. The government has stated concerns about the prioritisation of
that it doesn’t want to see viable spending in the levy. As much was
businesses go to the wall during this spent in 2018/19 for the new cohort
crisis, and the benefits to society of of senior leader apprentices, as was
a functioning apprenticeships system spent on degree apprentices under
mean that the survival of training 25 as a whole. Levy funds in general
providers are even more important.34 are increasingly skewed towards
The Supplier Relief scheme should older apprentices, on higher salaries
ensure all providers are supported and from wealthier areas. (Figure
sufficiently to retain capacity in the 8) This was already a concerning
apprenticeship sector to deliver the direction of travel, but in the context
skills that will be needed to support of economic contraction, this is
8Figure 8. Apprenticeship Levy spend per cohort in 2018/19 by age and apprenticeship framework/standard, level 6 and 7
apprenticeships only (degree level)
Accountancy / Taxation Professional
Senior Leader
Chartered Manager
Digital & Technology Solutions Professional
Registered Nurse
Chartered Surveyor
Civil Engineer
Academic Professional
Police Constable
Teacher
Senior Insurance Professional
Financial Services Professional
Manufacturing Engineer
Advanced Clinical Practitioner
All other standards
£-00 £10,000,000 £20,000,000 £30,000,000 £40,000,000
Under 25 Levy spend per cohort 2018/19 Over 25 Levy spend per cohort 2018/19
Source: Authors' calculations from DfE monthly apprenticeship starts, levy statistics and ESFA funding bands
RECOMMENDATIONS
1) The current support measures for apprenticeship training providers do not go far enough. The COVID supplier
relief scheme for training providers should also cover levy-funded apprenticeships, in order to ensure that providers
survive the crisis and can drive the next generation of apprenticeships.
2) The priority for current apprentices should be to continue training where possible, even when on furlough or if
redeployed within a company. This can create a virtuous circle for the apprentice, provider and employer.
3) The government should require employers to top up the wages of furloughed apprentices up to the appropriate
minimum wage for all usual hours per week, not just those spent training. Additionally, where employers can, they
should top up the 80% of furlough funding to 100% for apprentices on low wages, to secure the finances of all the
lowest paid apprentices.
4) Information, advice and guidance for young people considering apprenticeships should be protected. While young
people are missing out on face-to-face- support and open days, outreach from employers, and support from schools
and colleges should continue and be moved online where possible.
5) In order for apprenticeships to deliver on the levelling up agenda as we come out of the coronavirus crisis, social
mobility and widening opportunity should be an explicit criterion in a review of the apprenticeships levy. The balance
of apprenticeships across age groups, levels, those with equivalent or lower qualifications (ELQ) and existing versus
new starters should be examined.
6) With the likelihood of limited funding in the future, it is even more vital that apprenticeship levy funding is
focused in the right direction, to ensure both effectiveness and sustainability. The government should consider a
maximum salary ceiling for levy-funded apprentices, ensuring that levy funding is not being spent on highly-paid
and well-qualified senior staff. Other measures to reduce the strain on levy funding should also be considered, for
instance, requiring employers to ‘top up’ levy funding for certain categories of apprentice, or otherwise incentivising
apprenticeships most conducive to increasing opportunities for groups who need it most.
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