Apprenticeships are good for business and are the strongest vocational learning brand.

1. The Apprenticeships programme is : The main state-funded offer in our demand-led system, responsive to employer demand rather than target driven High profile politically, with a specific reference in the Coalition Agreement and widespread awareness across business and education sectors An all age programme: 16-18 places are key to DfE offer of education and training for young people and contribute to raising the participation age and the NEET strategy source: NESS 2009 Apprenticeships are good for business and are the strongest vocational learning brand. The Apprenticeships brand is key to its ongoing success and recognition levels are very high: 91% of employers have heard of government-funded apprenticeships although many aren’t aware of the different levels on offer.

2. Apprenticeship numbers have grown over the last 8 years, but that growth masks a changing profile • State funding for 25+ year olds was introduced in 2007/08 – now 18% of all starts are 25+ • Policy priority is to grow at Level 3, but recent growth is greater at Level 2 • Recent strong growth in service sectors, masks a smaller decline in construction, engineering and ‘traditional’ Total spend in 2009-10 £1,293m* Total spend in 2002-03 £743m* *Includes other work-based learning for 16-18 year olds. Source: LSC Annual Report and Accounts Bus Admin/Law Retail Health/Pub. Services/Care Engineering/ Manufacturing Construction Data Source: Statistical First Release, FE Data Service

3. 2010 Skills Strategy based on principles of freedom, fairness and responsibility We placed Apprenticeships at the heart of the strategy, but also committed to: Vocational qualifications that reflect the changing needs of employers Reducing reliance of some sectors on migration A Growth and Innovation Fund Co-funding Level 2 training in SMEs Protecting state funded training for with basic skills and for young adults’ up to Level 3 Simplifying the funding system and freeing providers from bureaucracy Backed by investment (in 2011-12 FY) of £3.9 billion in FE skills for post-19 learners. This includes £3.7 billion for over 3 million adult training places funded through the Skills Funding Agency Key delivery roles: The Skills Funding Agency funds and regulates adult further education and skills training The National Apprenticeships Service develops relationships with business to increase apprenticeships The Apprenticeship Ambassadors Network brings together senior business leaders who promote the benefits of apprenticeships to businesses of all sizes UKCES, an employer-led organisation, to raise employer ambition and investment in skills In a demand-led system growth depends on the right information and “offer” for learners and businesses

4. Priorities for 16-18 education are changing: Professor Wolf’s recommendations call for us to rebalance the interests of learner, employer and training provider We need to balance the priority of delivering increased volumes with maintaining our commitment to supporting progression and increasing proportions of Advanced and Higher Level Apprenticeships We are working with DWP to increasing the numbers of NEETs and unemployed young people entering Apprenticeships, without diluting the Apprenticeships brand We want to invest our funding in the optimum levels and sectors to best drive growth, whilst also leaving the system the flexibility to respond to local and individual demand The Apprenticeship programme increasingly needs to accommodate different policy goals across Government

5. Next Steps • The 2011 Budget (23 March) announced a £180m package of funding for 50,000 additional adult Apprenticeships(19+) over the SR period. 40,000 places will provide capacity to support young unemployed people, in particular through progression from the DWP Work Experience programme; the remaining 10,000 will allow for an increase in Higher Apprenticeships, focused on SMEs.