Edge report from Labour Conference

For some of us arriving at the Labour Party Conference this year, we held a little apprehension about the Government’s commitment to FE and apprenticeships, and their role in addressing some of the greatest challenges we face as a nation.

Of particular focus for us at Edge was the Growth and Skills Levy, and the potential impact of allowing businesses to spend their levy on non-apprenticeship skills training, on already-dwindling apprenticeship opportunities for young people. How this fitted into the Government’s Opportunity Mission – including a ‘Youth Guarantee’ of access to an apprenticeship – was, to be frank, somewhat mystifying. And this pro-business move came against a worrying backdrop:

1. 872,000 16 to 24-year-olds are not in any form of education, employment or training (NEET);
2. A below-target apprenticeship completion rate;
3. Nearly one-third (32%) of young people think employers are unsupportive of hiring young people (Youth Voice Census 2024).

It is our view that the levy (and other policy levers) should incentivise what we need to incentivise businesses to offer, and the hard truth is that they face very genuine barriers to taking young people on.

This is why, over the last two decades, Edge has been dedicated to promoting high-quality vocational and technical education pathways; the development of skills that prepare young people for life and work in schools and colleges, and the importance of partnerships between employers and educators (through teacher externships into industry and project-based learning, for example).

The apprenticeship system is not working as well as it could

The Growth and Skills Levy also presents an opportunity to address the fact that the apprenticeship system is not working as well as it could for certain employers, industries and young people. As our recent report, ‘Flex Without Compromise’, detailed, it is possible to design the levy in such a way that is pro-business and pro-young people. Suffice to say, the Prime Minister’s announcement at Labour Party Conference that the Government will “rebalance funding in our training system back to young people” starting with Foundation Apprenticeships, went some way to alleviate that apprehension. For one, it is a notable signal of interest in the power of apprenticeships at the highest levels of the Party, and an indicator of what the party sees at the fundamental purpose of apprenticeships. But it also demonstrates a party that is listening to organisations and individuals outside of business, outside of the Westminster bubble.

As the Department looks to design this programme, it will be reminded of the shortcomings of the previous traineeships programme in England, which failed to attract a sufficient number of both employers and young participants, ultimately leading to their suppression in 2022.

But there are some examples of highly successful pre-apprenticeship programmes the Government and officials can look to. In Aberdeenshire in Scotland, the local authority’s Foundation Apprenticeships programme not only has high completion rates (80%) and excellent student destinations, but they have also significantly improved students’ attainment in other subjects across the curriculum, even helping to close the disadvantage gap, and developed learners’ essential skills.

There are a number of features of the Aberdeenshire model that have made Foundation Apprenticeships so successful. They are a universal offer and, crucially for participation, can be taken alongside other Level 3 (equivalent) qualifications, meaning young people who wish to ‘try out’ a vocation can be safe in the knowledge they are keeping their options open.

There is also significant collaboration between schools, colleges, universities and employers to deliver them, backed by clear direction from national strategy. They hold tariff points and have significant university buy-in (e.g. Aberdeen University’s Medical School is now recognising a Pass in Foundation Apprenticeship Health & Social Care as the equivalent to a grade A in a science Higher e.g. Maths, Biology, Physics).

At the same time, we must be realistic that extending the scope of training eligible for levy funding to Foundation Apprenticeships will not be enough alone to spark the supply of apprenticeships we need to meet the growing demand from school-leavers.

Apprenticeship Duration Flexibility announcement

The concurrent announcement of some flexibility around the duration of the apprenticeship will surely be welcomed by some, namely those industries where a 12-month offer is difficult, like the creative sectors. Nonetheless, what this looks like in practice must be carefully considered; it is integral that apprenticeships, the principles that underpin them, and their quality are not eroded or undermined.

In tandem, it would not require huge expense from the Government to lift some of the barriers that young people face in accessing apprenticeship opportunities equally. Our report highlights the need for a more streamlined application process, reforms to Functional Skills Qualifications and a framework for high-quality mentoring.

Looking to the Budget

Leaving Conference, and looking to the Budget, we now have a clearer sense of direction from the Government on its plans for the Growth and Skills Levy, the value it places on the potential of apprenticeships to meet its wider missions and a renewed focus on young people.

Realising that potential now depends on driving up apprenticeships supply in England, and that means these announcements must be accompanied by deeper reforms. At Edge, we know that with genuine collaboration between policymakers, businesses, educators and young people, we can create an apprenticeships and skills system that works far better for everyone, and we are pleased this balance is being restored.

By Holly Papworth is Head of Policy at the Edge Foundation