Creating opportunities for young people

With a strong legacy of apprenticeships in Lancashire local employers are watching carefully the recent announcements from government and proposals to change the current Apprenticeship Levy to a Skills and
Growth Levy.

While the implications of the proposed changes are not yet clear, the government is keen to boost opportunities for young people.

Proposed changes include the opportunity for employers to spend their levy on more flexible types of training, including new foundation apprenticeships for those not ready to start a Level 2 or 3 standard, and shorter apprenticeships that last less than the current 12 month minimum.

The government is also proposing to cut Level 7 qualifications, with an expectation that employers will fund more of these themselves and direct their levy towards early career development, as opposed to upskilling experienced members of staff.

The new body ‘Skills England’, which will be responsible for identifying skills priorities for the levy, is seeking to work with local areas to draw through local priorities, with the interim chair, Richard Pennycook, keen to transform, in partnership with employers, the pool of talent available.

At the recent annual Lancashire Skills Pledge celebration, businesses were keen to stress the benefits of investing in early careers – saying that by working together, we can create a better pool of talent.

In Lancashire, each year, there are between 10,500 and 11,000 apprenticeship starts, this includes new recruits, and existing employees who are upskilling through apprenticeships.

Nationally and in Lancashire, we have seen a decline in Level 2 opportunities, with only one in five starts now at Level 2, with growth in
higher and degree equivalent apprenticeships, with the latter now accounting for over a third of apprenticeship starts in Lancashire – the
number has doubled since 2017/18 with nearly 3,900 starts in 2023/24.

We have also seen a reduction in the number of 16 and 18-year-olds leaving education moving into apprenticeships.

The proposed reforms have the potential to redress the balance and support employers to focus on early careers to boost their home-grown talent pipeline.

Alongside the government’s proposed Youth Guarantee, referenced in the recent ‘Get Britain Working’ white paper, the Skills and Growth
Levy has the potential to reverse the decline in apprenticeships for younger people and give greater opportunity to grow our talent base.

The Lancashire Skills and Employment Hub, in partnership with the Lancashire Work Based Learning Forum and The Lancashire Colleges, is working with the Department for Education on the Early Connect pilot.

It provides significant opportunities for employers to raise the visibility of their business, apprenticeship opportunities and attract college and sixth form leavers.

The population of 16-to18-year-olds has been increasing over the last six years but Lancashire apprenticeship starts, for this age group, remains at approximately 3,000 a year.

The latest information for 2023/24 shows a fall of four per cent from the prior year. 

Although apprenticeships can be undertaken at any time, the pilot has identified that young people have a greater awareness of apprenticeship pathways for their chosen careers and are actively looking for opportunities from October to April that offer a summer start.

Working with schools and sixth forms we are ensuring opportunities are promoted and that students get the support and guidance to make the best application – that is a talent pool of more than 18,000 young people!

This pilot builds on work with partners, including the Lancashire Careers Hub and the Lancashire Work Based Learning Forum, to raise the profile
of apprenticeships from the age of 13.

To encourage engagement, Lancashire County Council has extended its Young Apprenticeship Grant programme and is currently offering £3,000 incentives, via the Skills Hub, for small to medium sized employers – those with fewer than 250 employees – keen to recruit younger apprentices.

Advice and guidance is available to discuss business needs and to identify suitable standards and find out about local providers.

There is also an opportunity to access funds for apprenticeships training via the Lancashire Levy Transfer Network, where larger Lancashire employers are transferring unspent levy to local employers to reduce costs.

So, how do you get involved? If you are already recruiting apprentices, ensure that your apprenticeship vacancies are being advertised via the digital apprenticeship service – assuring your vacancies will feature
on the ‘Find an Apprenticeship’ search engine and automatically pull through to UCAS and other job boards.

If you are new to apprenticeships, or haven’t recruited for a period of time, register for the Lancashire Skills Pledge and the ‘Take on an
Apprentice’ pledge.

You will receive a call to help you understand funding and costs, navigate the system, provide impartial advice on standards, providers and help you to target the right audience: https://www.lancashireskillshub.co.uk/lancashire-skills-pledge/