Alarm as number of apprenticeships declines in region

APPRENTICESHIPS HAVE fallen by an estimated 30 per cent in and around West Yorkshire over the past year, according to a report by the county’s combined authority.

The research by the West Yorkshire Combined Authority highlights the fall in the number of businesses offering apprenticeships since the introduction of reforms to the system in the UK.

The changes include a mandatory “apprenticeship levy” for organisations with a payroll of £3m and over, intended to be used by those firms to create apprenticeship opportunities either for new staff or to upskill existing employees in line.

According to an Open University study published in April this year, only £108m had been drawn down from the £1.39bn paid in by levy-paying organisations to invest in apprenticeships one year on from the introduction of the levy.

In proposals submitted to government ahead of the Autumn Budget on October 29, the West Yorkshire Combined Authority has called for this unspent levy money to be retained within the Leeds City Region, which includes West Yorkshire as well as Harrogate, Craven, Barnsley and Selby.

By doing this, the authority says support can be put in place to help both small and larger firms create apprenticeships to address their skills needs and become more productive.

The Government has recently announced a relaxation of the apprenticeship levy rules to give levy-paying businesses greater flexibility in the way they use their levy payments, including directing up to 25 per cent towards smaller companies. Susan Hinchcliffe, inset, who chairs the combined authority, said: “As a region which has traditionally seen higher levels of participation in apprenticeships than other parts of the country, the dramatic fall in the number of apprenticeships offered in Leeds City Region has serious implications for our workforce and future productivity.

“Any measures that make it easier for businesses large and small to take on apprentices must therefore be welcomed. However we need greater flexibility and resources in the system now, not in two years’ time. The clear message we’ve been hearing from businesses – only 20 per cent of which now offer apprenticeships – is that they need more help to adjust to the new apprenticeships system.”