Adult apprenticeship review urged
01 February 2012 09:57
The National Audit Office (NAO) has today urged the Government to set its sights higher to get better value from the millions of pounds it is spending on adult apprenticeships. This despite the current return of around £18 for every £1 of public spending.
The spending watchdog said apprenticeships had expanded by 140% over a four-year period from 2006/7, with over 25-year-olds accounting for two thirds of the increase.
Retail was one of the areas that showed the highest growth, alongside social care, customer services, retail, management and business administration, with just 2% each in engineering and computing.
Nine out of 10 apprentices were satisfied with their training, but a fifth of apprenticeships only lasted six months in 2010/11 and only a third were at an advanced level, compared with 60% in France.
The programme was well co-ordinated and better managed than the previous Train to Gain scheme, said the NAO, but it added that the Business Department could significantly improve value for money by targeting resources on areas where the greatest economic returns can be achieved.
Amyas Morse, head of the NAO said: "The apprenticeships programme has been providing a good return for public spending. Nevertheless, the Department should set its sights higher in order to get better value from the 0.5 billion pounds and rising now spent on adult apprenticeships each year.
"It needs to target resources more effectively, confirm the training provided is in addition to what would have been provided without public support and make sure that the funding system is informed by robust information on the cost of delivery."
Margaret Hodge, who chairs the Public Accounts Committee, commented: "The apprenticeship programme has grown rapidly since 2006 and is benefiting both employers and apprentices, but there needs to be much greater focus on getting value for money from the 0.5 billion pounds spent each year.
"There are troubling signs that the apprenticeship market is not working as intended. Many employers are not paying their share towards training costs, the payments made to providers do not always reflect the costs of delivering training, and apprenticeships are concentrated in a small number of areas."
Skills Minister John Hayes said: "Unprecedented investment, backed by tough new measures to ensure that quality matches quantity, has helped make apprenticeships the gold standard vocational qualification.
"So I am delighted that the NAO has recognised the progress we have made and that they identify the extraordinary economic benefits of apprenticeships. Few, if any, other Government programmes produce anything like the return of £18 for every £1 spent, let alone the still greater return that our economists estimate."
A separate report by vocational organisation City & Guilds showed that businesses would receive a £4.3 billion boost if a million extra apprenticeship places were created by 2013.
A study ahead of Apprenticeship Week, which starts on Monday, showed that the economy would also benefit from increased tax and national insurance contributions.
Chief executive Chris Jones said: "Our report findings clearly show that it is vital that we meet the Government's ambition of achieving an additional one million apprenticeship starts by 2013.
"Apprenticeships work for both businesses and individuals - providing companies with a skilled workforce to help them grow and giving people of all ages hands-on experience, guidance and qualifications, to help them develop real skills in their chosen career.
"Not only will these apprenticeships inject a much-needed financial boost into our struggling economy, but they will also help tackle the current unemployment levels and ensure that businesses have the skills they need for their future growth."
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