Now more than ever, we need a strong, viable apprenticeship offer to upskill London’s workforce.
However, the current apprenticeship system is failing people, especially young Londoners.
According to latest ONS figures, there has been a recent increase of people unemployed for up to six months, which is largely driven by people aged 16-24 years. There is real opportunity here to bridge this employment gap by reforming the apprenticeship system and creating viable, lasting apprenticeships that will benefit our capital’s economic future.
In London, while the number of higher-level (level 4+) apprenticeships started by Londoners has increased significantly since 2016/17 (+242%), the number of intermediate level (level 2) apprenticeships has more than halved (-66%).
Across the capital, the age profile of people starting apprenticeships is also changing, particularly for those who are under 19. Between 2018/19 and 2020/21, the number of apprenticeships started by learners aged under 19 fell from 6,580 to 3,880.
Apprenticeships provide valuable pathways for getting new skills, new qualifications and higher salaries as employees progress in their careers, as well as the immediate opportunity to learn on the job. They are an invaluable tool in both responding to the challenge of unemployment facing many young people today and addressing skills gaps which hold back vital sectors such as social care. They can also play a part in boosting workforce diversity by bringing a wider range of people into organisations at an early stage and supporting their growth within an industry.
At the London Councils Apprenticeship Summit held last week, borough leaders and chief executives convened to shine a light on the challenges surrounding the decrease in uptake of apprenticeships, to share best practice on actions to create more of these opportunities for Londoners, and to explore the business case for recruiting more young and diverse apprentices.
It was fantastic to share the platform with two London borough apprentices, Angel Shah and Amos Makunga, who spoke about how they are benefitting from their apprenticeships with Westminster and Southwark LBCs respectively by gaining confidence and new skills.
We reflected that local leaders are in a position to shift the dial to boost the number of young Londoners starting apprenticeships with London boroughs and our supply chains. Not only that, there is a strong business case for us to do so. Given our ageing workforce, persistent skills gaps and statutory responsibilities for children and young people, councils have so many reasons to reap the benefits of hiring apprentices. Through greater collaboration, we hope to overcome the obstacles in our path and see the many rewards that come with investing in our young people.
We know that this decrease in apprenticeship opportunities is in part due to the flaws in the Apprenticeship Levy, which was introduced to give employers a greater role in addressing skills shortages and to create more apprenticeships. However, in reality, many employers – including London’s boroughs and local authorities across the country – cannot make the most of the funds available to them.
Between April 2021 and March 2022, a total of £43.5m was available to London boroughs through the Apprenticeship Levy. Yet London boroughs spent just under half of apprenticeship levy available to them as a result of its inflexibility. At present, the levy can be used to fund training costs for apprentices, but the employer must bear the costs of the apprentice’s wages, as well as having to dedicate resources to administration, recruitment and management.
London Councils is calling for greater flexibility in how the Apprenticeship Levy can be spent. This would mean thousands of pounds of funding could be invested where individual apprentices need help and support most, rather than being returned to Government.
In London, we have recognised that now is the time for us to act to increase take up of apprenticeships among young and diverse people. Too many Londoners are missing out on vital opportunities to gain skills and experience – skills that are essential in maintaining London’s vibrancy, making the most of our talent, and delivering inclusive economic growth.
Mayor Rokhsana Fiaz is London Councils’ Executive Member for Employment and Skills
