Draft budget funding disappointment for Wales’ apprenticeships providers

The organisation representing work-based learning providers across Wales is disappointed that the Welsh Government’s draft budget excluded apprenticeships when more money was pledged to other areas of education and training.

The National Training Federation for Wales (NTFW) has repeated its call for increased investment in apprenticeships and has pledged to work with the Welsh Government to achieve shared goals, as budget discussions continue.

Earlier this year, the Welsh Government slashed the apprenticeship budget by 14%.

Welcoming the commitment to preserving the existing apprenticeship budget, Lisa Mytton, NTFW strategic director, said:

“This is a clear acknowledgment of the crucial role apprenticeships play in fostering a skilled and inclusive workforce.

“We commend the Cabinet Secretary for Finance, Mark Drakeford, for describing the draft budget as a ‘plan for growth’ and ‘a budget that protects the vulnerable’. These principles are at the heart of what apprenticeships achieve, empowering individuals and fostering resilience in communities across Wales.

“Additional funding is essential to meet the four key priorities outlined by the First Minister and to fully realise the transformative potential of apprenticeships in contributing to growth and protecting the vulnerable.

“Any additional funding would go some way to restoring capacity recently lost through inflation and previous budget cuts.

“By investing further in apprenticeships, we can work together to enhance economic growth through a skilled workforce, promote social mobility and inclusion, address industry-specific skill shortages and support communities in recovering from economic challenges.

“Whilst we understand why Welsh Government wants the available apprenticeship budget to prioritise the Young People’s Guarantee, doing that with this budget would lead to further damaging consequences to the health and social care sector.

“The NTFW remains committed to collaborating with the Welsh Government and other stakeholders to ensure that apprenticeships continue to deliver meaningful benefits for individuals, businesses and communities.

“We look forward to further dialogue and partnership as we work towards shared goals.”

The Welsh Government appears to have ignored the findings of a recent independent report which probed the impact of the Welsh Government’s apprenticeship budget cut.

The Centre for Economics and Business Research (Cebr) report, commissioned jointly by the NTFW and CollegesWales, predicts a reduction of nearly 6,000 apprenticeship starts in Wales this year, with an associated £50.3 million short-term loss to the economy, measured in Gross Value Added.

It also highlights that the health and social care sector, along with individuals from disadvantaged areas, will bear the brunt of these cuts.

Data released by Medr, Wales’ Commission for Tertiary Education and Research, for February to April this year shows the number of learners beginning a Foundation Apprenticeship in Health and Social Care dropped by 445 (34%) compared to the same period last year. Those starting an Apprenticeship fell by 160 (27%).