We need to focus on good apprenticeships

Expanding provision should not be at the expense of quality.

Young people in the UK are being squeezed on two fronts. They face a difficult labour market, with youth unemployment now over a million and continuing to rise. And, for those who don’t go to University, the education system does not always perform well. In her review of vocational education, Alison Wolf argued that many - but by no means all - vocational qualifications offered ‘little or no labour market value’.

In response, politicians have rediscovered apprenticeships. There are good reasons for this. Ministers like to announce impressive numbers of new apprentices starting work. They feel like they’re addressing a current problem (youth unemployment) while solving a long-standing one (education for those who don’t go to University). And apprenticeships have a reassuring retro sound – reminiscent of the past glories of manufacturing or the strength of the German economy. They are the most recognisable and respected brand left in vocational education. But how exactly will apprenticeships address youth unemployment and the shortage of meaningful vocational qualifications?

Nobody questions that, in theory, apprenticeships are a good thing. But they are diverse and some apprenticeships are better than others. While apprenticeships are an important part of efforts to address the UK’s economic problems, the pay off will be in the long-term only. And, unless they are handled cautiously, political efforts to expand the system may reduce the quality.

In the UK, we tend to be sniffy about vocational education. The strength of our Universities, and declining employment in manufacturing, means we have favoured other parts of the system. While the UK provides clear and well structured pathways into work for those who do well at school, routes are less clear for those who don’t. Past attempts at reform have often been fudged. As the Wolf report argued, many vocational qualifications in the UK are essentially ways to postpone young people’s entry into the labour market.

Apprenticeships are good when they provide a route into employment and meaningful training for those who do not want to go to University. They offer vocational training, alongside genuine mentoring and career progression, which can help young people enter the labour market and succeed throughout their careers.

This does not mean they can, or should, be seen as a solution to youth unemployment. The ‘gold standard’ apprenticeships at Rolls Royce or BT tend to be oversubscribed many times over – Michael Gove has argued that some are harder to get into than Oxbridge. This is good as it suggests they are valuable qualifications. But it also makes them unlikely to help the young people least likely to enter the labour market. Those leaving school with poor prospects are as unlikely to get into the top apprenticeships as they are into the top universities.

But there are apprenticeships on offer at many levels. The most advanced apprenticeships – Higher Level Apprenticeships – are the equivalent of a foundation degree. Intermediate Apprenticeships are the equivalent of a few GCSE’s. Some apprenticeship programmes successfully link meaningful work and valuable training, others don’t.

Some have raised concerns that as the number of new apprenticeships expands, fewer of them will be of a high quality. In February, David Cameron proudly announced that the numbers of young people starting apprenticeship in 2011 was 63 per cent higher than in 2010. Yet recent stories of poor quality apprenticeships in low skilled employment, with cursory opportunities for training, threaten to devalue the brand. The recent controversy around Morrison’s was one example.

Alongside such anecdotal evidence, there has been a measurable change in the type of apprenticeships which are underway. As the number of new starts has increased, the average length has decreased: according to the National Audit Office, 19 per cent of apprenticeships started in 2010/11 lasted less than six months, up from 12 per cent in 2008/9. In response, the government has announced that new apprenticeships will have to last 12 months or more. But other issues, such as quality of training, remain problems.

Vocational education matters – and this is why keeping up quality is so important. And few doubt that apprenticeships, when done well, are good. Apprenticeships are often a good pathway for young people into work, ensuring that they can develop meaningful skills alongside the work experience which is crucial in today’s labour market. But in a rush to increase quantity there is a risk that quality may be affected. Given the lack of options for young people in the labour market, that would be a bad thing.

David Cameron meets a Waitrose apprentice. Credit: Getty

Neil is the Senior Economist at The Work Foundation

 

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We still have time to change our minds on Brexit

The British people will soon find they have been misled. 

On the radio on 29 March 2017, another "independence day" for rejoicing Brexiteers, former SNP leader Alex Salmond and former Ukip leader Nigel Farage battled hard over the ramifications of Brexit. Here are two people who could be responsible for the break-up of the United Kingdom. Farage said it was a day we were getting our country back.

Yet let alone getting our country back, we could be losing our country. And what is so frustrating is that not only have we always had our country by being part of the European Union, but we have had the best of both worlds.

It is Philip Hammond who said: “We cannot cherry pick, we cannot have our cake and eat it too”. The irony is that we have had our cake and eaten it, too.

We are not in Schengen, we are not in the euro and we make the laws that affect our daily lives in Westminster – not in Europe – be it our taxes, be it our planning laws, be it business rates, be it tax credits, be it benefits or welfare, be it healthcare. We measure our roads in miles because we choose to and we pour our beer in pints because we choose to. We have not been part of any move towards further integration and an EU super-state, let alone the EU army.

Since the formation of the EU, Britain has had the highest cumulative GDP growth of any country in the EU – 62 per cent, compared with Germany at 35 per cent. We have done well out of being part of the EU. What we have embarked on in the form of Brexit is utter folly.

The triggering of Article 50 now is a self-imposed deadline by the Prime Minister for purely political reasons. She wants to fix the two-year process to end by March 2019 well in time to go into the election in 2020, with the negotiations completed.

There is nothing more or less to this timing. People need to wake up to this. Why else would she trigger Article 50 before the French and German elections, when we know Europe’s attention will be elsewhere?

We are going to waste six months of those two years, all because Prime Minister Theresa May hopes the negotiations are complete before her term comes to an end. I can guarantee that the British people will soon become aware of this plot. The Emperor has no clothes.

Reading through the letter that has been delivered to the EU and listening to the Prime Minister’s statement in Parliament today amounted to reading and listening to pure platitudes and, quite frankly, hot air. It recalls the meaningless phrase, "Brexit means Brexit".

What the letter and the statement very clearly outlined is how complex the negotiations are going to be over the next two years. In fact, they admit that it is unlikely that they are going to be able to conclude negotiations within the two-year period set aside.

That is not the only way in which the British people have been misled. The Conservative party manifesto clearly stated that staying in the single market was a priority. Now the Prime Minister has very clearly stated in her Lancaster House speech, and in Parliament on 29 March that we are not going to be staying in the single market.

Had the British people been told this by the Leave campaign, I can guarantee many people would not have voted to leave.

Had British businesses been consulted, British businesses unanimously – small, medium and large – would have said they appreciate and benefit from the single market, the free movement of goods and services, the movement of people, the three million people from the EU that work in the UK, who we need. We have an unemployment rate of under 5 per cent – what would we do without these 3m people?

Furthermore, this country is one of the leaders in the world in financial services, which benefits from being able to operate freely in the European Union and our businesses benefit from that as a result. We benefit from exporting, tariff-free, to every EU country. That is now in jeopardy as well.

The Prime Minister’s letter to the EU talks with bravado about our demands for a fair negotiation, when we in Britain are in the very weakest position to negotiate. We are just one country up against 27 countries, the European Commission and the European Council and the European Parliament. India, the US and the rest of the world do not want us to leave the European Union.

The Prime Minister’s letter of notice already talks of transitional deals beyond the two years. No country, no business and no economy likes uncertainty for such a prolonged period. This letter not just prolongs but accentuates the uncertainty that the UK is going to face in the coming years.

Britain is one of the three largest recipients of inward investment in the world and our economy depends on inward investment. Since the referendum, the pound has fallen 20 per cent. That is a clear signal from the world, saying, "We do not like this uncertainty and we do not like Brexit."

Though the Prime Minister said there is it no turning back, if we come to our senses we will not leave the EU. Article 50 is revocable. At any time from today we can decide we want to stay on.

That is for the benefit of the British economy, for keeping the United Kingdom "United", and for Europe as a whole – let alone the global economy.

Lord Bilimoria is the founder and chairman of Cobra Beer, Chancellor of the University of Birmingham and the founding Chairman of the UK-India Business Council.