Business

The Value Of Apprenticeships

Issue 70

The last year and a half of lockdowns have had a noticeable effect on the number of people taking up apprenticeships across the region. But the government is offering fresh support for businesses looking to bring in new young talent, and the North East LEP's Michelle Rainbow says it's a great time to take advantage.

When it comes to apprenticeships, Michelle Rainbow has a goal. That’s hardly a surprise. Michelle is the Skills Director of the North East Local Enterprise Partnership. It’s her job to remind every North East resident, young or old, that new skills are a gateway to a beautiful future. But it’s not just about getting people into these roles. It’s about making sure everyone understands how transformative they can be. “We want ‘parity of esteem’ between these qualifications”, she said. “A good apprenticeship is just as good as any qualification. Being there in the business, learning how it works, and getting paid. It’s a huge benefit. “I don’t think the North East has ever really struggled to see the value of apprenticeships. “They’ve been respected through the decades, in traditional industries such as shipbuilding. They’re a great way for young people to get a foot on the ladder. “Now, people are able to find apprenticeships that weren’t there three or four years ago, in exciting careers in digital and manufacturing. They can find a route that suits them, and at all levels from Level 2 to degree level or Masters.” As far as Michelle is concerned, the pot is now even sweeter. In early June, the government announced an Apprenticeship Incentive Scheme, allowing businesses to claim £3,000 for each new apprentice hired as a new employee between April 1 and September 30. “£3,000 is not to be sniffed at”, said Michelle. “What’s more, training while you earn is particularly appealing to young people, particularly those who have decided that university is not for them. We’re pleased that the government sees this as a priority.” It’s been a tough year and a half for young people. The uncertainty of COVID-19 and its associated lockdowns has led to disruption with exams. And the conversations about “what to do next” have certainly become more complicated. That’s borne out in recent stats. According to the Employment and Skills Funding Agency Data Cube, there were 6,300 total apprenticeship starts in the North East LEP area between August 2020 and January 2021. That’s 1,960 down on the corresponding period in 2019/20. But the uncertainty isn’t just limited to the pandemic. The recent reforms to the apprenticeship system have led to a certain amount of confusion, which Michelle is keen to address. “Whether that started when the apprenticeship reforms came in, the EU exit, or the pandemic, there was a change in certainty for businesses”, Michelle said. “There are lots of good reasons for that. A lot of businesses have put staff on furlough, and may not have wanted to commit or make plans. “Over the last two months, we’ve seen a good upturn in the North East economy. That’s great, but we need a renewed focus on apprenticeships. And I’m hoping that the message is getting out there to young people that there are lots of opportunities.” So how have the North East LEP helped encourage that focus? “What we’ve tried to do is simplify some of that information”, said Michelle. “We have an Apprenticeship Toolkit on the North East Growth Hub website with advice and guidance, and our team really understands how the funding works. “My advice would be for businesses to ask us, and let us help you work your way through it rather than miss out.” Plus, of course, there are more options open than before. The North East has seen a rise in the takeup of Degree Apprenticeships, through which students can work toward a bachelor’s or master’s degree as part of their apprenticeship. Between April and May this year, the government also ran a consultation on “flexi-job apprenticeships” which would allow employers to “front load” training, and enable apprentices to work across a range of projects and employers. “I’m pleased they’re asking the question”, said Michelle. “It may be that you get a scenario where a person gets a taste for a lot of things, or different departments, and that might be better for some businesses and apprentices. “But in all cases, we want young people to get the support from schools and career leaders to really understand each apprenticeship, and what experience it will bring. We want to make sure that everyone gets the careers guidance that’s suitable for them. And we want the North East to lead the way

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