land professionals employment insight · a lack of understanding regarding the changes to the...
TRANSCRIPT
Content Page
1. Overview 3
2. Volume of apprenticeship starts 4
3. Impact of the Levy 5
4. New starts by sector 6
5. New starts by gender and region 7
6. Gender pay gap 8
7. New starts by sector: 9 - 10
1. Subject
2. Standards
3. Framework
8. Training hours by sector 11
9. New construction standards 12
10. Apprenticeship Levey 13
There were approximately 21,000 construction apprenticeship
starts in 2016/17, 4,000 down on the previous year.
The construction industry employs around 2.3 million people, with increased output
expected for 2018. The industry is forecasted to need an additional 31,600 new recruits
to meet current targets. The hiring trend is set to continue with over 126,000 new
recruits needed over the next 4 years.
For an industry already crippled with skill shortages, it’s no wonder attracting talent is
one of the main priorities for both HR and Operations. Apprenticeships during 2015/16
seemed a promising solution to help bridge the skill gap with record numbers of new
starts totalling just over 25,000, however, the latest figures for 2016/17 have seen a
drop of 4,000.
A lack of understanding regarding the changes to the Apprenticeship Levy are being
attributed to the decline, however, other sectors such as Health, Public Services and
Care have experienced a significant increase over the same time period. The increase
is most likely due to the awareness campaigns and pro-active recruitment drives by
care and health organisations.
In 2015 the Government announced a commitment to create 3 million new
apprenticeships by 2020. The Welfare Reform and Work Act 2016 placed an obligation
on the Government to report annually on its progress towards meeting this target. The
Enterprise Act 2016 provided the Secretary of State with the power to set targets for
apprenticeships in public bodies in England to contribute towards meeting the national
targets.
This report outlines the key points from their report released January 2018.
Note: New Apprenticeship are referred to as a ‘start’, and the completion of an apprenticeship is referred to as an ‘achievement’.
APPRENTICESHIP IN CONSTRUCTION
OVERVIEW
Apprenticeship numbers are downIn 2016/17 there were 491,300 apprenticeship starts in England, 18,100 less than the
previous year. This is mainly due to the large reduction (30%) in the number of starts in
the final quarter of 2016/17. There were 114,400 apprenticeship starts in England in the
three months from August to October 2017, which was 49,800 fewer than a year earlier.
The Department for Education said the changes to how apprenticeships were funded
were "likely to have impacted on starts" but the levy-payers it had spoken to were
planning to increase the number of apprentices they employed in the future.
The new levy applies to all UK employers with a wage bill over £3m - but Scotland,
Wales and Northern Ireland manage their own apprenticeship schemes and how they
are funded.
Participation & Achievements 912,200 people were participating in an apprenticeship in 2016/17, 12,800 more than
previous year.
BUILDING CAREER POTENTIAL
Construction 21,000 Apprenticeship Starts
Volume of apprenticeship starts
2015 2016 2017
300,000
200,000
100,000
0
Apprenticeship Achievements
2016/17
UK491,300 Apprenticeship Starts
Apprenticeship achievements are upIn 2016-17, 277,800 people completed an apprenticeship in England –
the highest number since comparable records began in 2002.
Employers 'don't understand the new levy'The government estimated the new levy would affect only about 2% of employers in
the UK but a survey of more than 1,000 UK employers released by the HR industry
body, the Chartered Institute for Personnel and Development (CIPD), suggested
about a third currently pay it.
According to the CIPD survey, 22% of employers don't know whether they have to
pay the levy or not.
Over half of employers surveyed (56%) thought they would be encouraged to "re-
badge" existing training schemes as apprenticeships, in order to claim the money
back.
The new levy has drawn criticism from the likes of the Institute of Directors, who said
many businesses did not understand how the new system works and that one in 10
of their members wrote the levy off as a tax.
Anne Milton, Apprenticeships and Skills Minister, said: "There have been significant
changes for employers and training providers since April 2017, and it's right that they
take the time to plan ahead to make sure they get the skilled workforce they need."
BUILDING CAREER POTENTIAL
Percentage of organisations that don’t know if they’re paying the levy.
Private Public Non-forProfit
SMEs Large Organisations
Source: Chartered Institute of Personnel & Development Survey
0
10
20
30
30% Drop in apprenticeship starts
from the previous, due to levy changes
and lack of understanding from
companies.
Impact of the Levy
The health sector is the most popular among apprenticesHealth, business, engineering, retail and construction were the most popular sectors
for new apprentices in England last year.
Most starts were in two of those sectors, which accounted for 277,330 between
them:
• health, public services and care
• business, administration and law
Within Intermediate, the first level of apprenticeship, roles might include an IT
coordinator,
a mental health support worker or a bricklaying apprentice.
The most common subject area for apprenticeship starts prior to 2016/17 had been
Business, Administration and Law, but for the first time in 2016/17 there were more
starts in Health, Public Services and Care. Starts in the former have fallen by almost
30,000 since 2011/12, while starts in the latter have increased by almost 30,000.
The other area that has seen a significant change in starts between 2011/12 and
2016/17 was Retail and Commercial Enterprise where starts decreased by over
30,000 to 75,000 starts in 2016/17
BUILDING CAREER POTENTIAL
The Health Sector’s apprenticeship
campaign has made a real impact and
helped tackle skill shortages
within the industry
150,000100,00050,0000
Health, public services and care
Business and law
Engineering and manufacturing
Retail and commercial
Construction and planning
Top five sectors for apprenticeship starts
By Sector 2016/17 86% of starts in 2016/17 were in the following subject areas, with over half in the top
two areas:
• Health, Public Services and Care: 138,000 starts, up 7,000 from 2015/16
• Business Administration and Law: 138,000 starts, down 4,000 from 2015/16.
• Retail and Commercial Enterprise: 75,000 starts, down 10,000 from 2015/16
New starts by sector
More women start apprenticeships than menIn 2016-17, 54% of apprenticeship starts in England were by women
(262,820), compared with 46% by men (228,520). The number of
women starting apprenticeships in England has been higher than
men every year since 2010-11. Primary apprenticeship sectors such
as Health were there are generally more women than men working
within the industry, probably reflects the higher proportion of women.
Starts for both men and women fell in 2016/17 from 2015/16,
although the fall was greater for men (12,000) than it was for women (6,000).
BUILDING CAREER POTENTIAL
2015 2016 2017
60
50
40
30
20
10
0
Proportion of apprenticeship starts by gender
Female Male
By age 46,600 (41%) of the apprenticeships started in the first quarter of 2017/18 were started by people
under the age of 19. The remaining starts were split fairly evenly between those aged 19-24 (30%
of starts) and those aged 25 and over (29%).
In the same period of 2016/17, the age profile followed a similar pattern. 37% of starts between
August and October 2016 were by those under 19 with the remaining starts being divided fairly
evenly between 19 -24 year olds (29%) and those over 25 (33%).
The first quarter of the academic year
tends to have a higher percentage of
apprenticeship starters under 19 than
subsequent quarters. This accounts for
young school leavers moving onto an
apprenticeship directly from school in the previous academic year.
Age 16
6%
Age 17
8%
Age 18
11%
Age 19-24
28%Age 25-34
21%
New starts by gender and age
Age 35-44
13%
Age 45-59
12%
Age 60%
1%
Male apprentices are earning moreIn 2016, male apprentices surveyed by the Department for Business earned on
average £7.10 per hour, while women received just £6.85.
But taking the median hourly pay (the middle value when everyone's wages are
arranged from highest to lowest) into account, female apprentices earned 17p per
hour more.
According to the Young Women's Trust, a charity that campaigns for disadvantaged
young women, female apprentices are under-represented in Stem (science,
technology, engineering and mathematics) sectors. Male apprentices are
concentrated in IT, construction and engineering - sectors that tend to be better paid.
In 2015-16, more than 72,000 male apprentices started programmes in engineering
in England, compared with 6,260 women, according to the DfE. By contrast, more
than 100,000, or 40% of all female apprentices, started programmes in the health
and social care sector.
The Young Women's Trust says action must be taken to improve access for women
in Stem sectors, such as introducing mentoring schemes or women-only work
experience placements.
BUILDING CAREER POTENTIAL
Female Male
Comparing hourly pay for male and female
7
6
5
4
3
2
1
0
Mean Median
The gender pay gap
BUILDING CAREER POTENTIAL
Health, Public Services & Care
Business, Administration & Law
Retail & Commercial Enterprise
Engineering & Manufacturing
Construction, Planning & Built Environment
Information & Communications Technology
Leisure, Travel & Tourism
Education & Training
Agriculture, Horticulture, & Animal Care
Arts, Media & Publishing
Science & Mathematics
150100500
2016/17 Apprenticeship starts by sector subject, in thousands
New starts by sector subject
BUILDING CAREER POTENTIAL
Apprenticeship starts by standards in thousands Apprenticeship starts by framework in thousands
10 most popular standards 10 most popular frameworks
16/17 16/17
Retailer 2.2 Health & Social Care 87
Installation Electrician/Maintenance Electrician 1.9 Management 47
Team Leader/Supervisor 1.9 Business Administration 46
Customer Service Practitioner 1.5 Children’s Care Learning & Development 27
Infrastructure Technician 1.4 Hospitality & Catering 25
Hospitality Team Member 0.8 Customer Service 20
Operations/Departmental Manager 0.8 Construction Skills 20
Dual Fuel Smart Meter Installer 0.6 Industrial Applications 17
Chartered Manager Degree Apprenticeship 0.6 Engineering 15
Engineering Technician 0.6 Care Leadership & Management 12
Source DfE/SPA FE data library
New starts by sector standards and framework
In 2016/17 the vast majority (95%) of apprenticeship starts
were on frameworks, although the number of framework
starts fell by almost 40,000 between 2015/16 and 2016/17.
There were 23,700 starts on apprenticeship standards in
2016/17, almost 20,000 more than in 2015/16.
The most popular framework in 2016/17 was Health and
Social Care, where starts have increased by 16,000 from
2011/12. The highest number of starts in an apprenticeship
standard was in the Retailer apprenticeship. .
BUILDING CAREER POTENTIAL
Construction
Engineering
Health Care
Education
0 2 4 6 8 10 12 14 16
Business & Law
Retail
Agriculture
ICTArts & Media
Leisure
Average weekly hours
formal training
% Change in starts, 2011-12 to 2016-17
60%
40%
20%
-
20%
-
40%
60%
Training and starts at Level 2 & 3 by sector
Training starts and hours by sector
Bubble size indicates number of Level 2 and 3 starts
by sector during 2016-17. Source: Department for
Education
In trying to get a handle on quality, we can look to the Ofsted results
for those who train apprentices. By this measure, as The Times reported last month, there is cause for concern with over half of
providers being labelled as “requires improvement” or “inadequate.”
Yet another way would be to look at the actual amount of training
provided. When the levy system came into force last spring, it came
with a series of new funding rules, including a welcome new
requirement that apprentices spend 20 per cent of their time on off-
the-job training (equivalent to eight hours a week for a full-time
apprentice).
The Government’s own survey of Level 2 and 3 apprentices,
however, shows that as of last year (before the new 20% rule came
into place) a large proportion of apprentices were receiving well
under that amount.
For example, the average weekly hours spent on formal training in
retail was 6, in health and social care 5, and in business 4.5. Given
that these sectors accounted for roughly two-thirds of all Level 2 and
3 apprenticeship starts last year, it’s imperative that Government
monitor that the quality – and quantity – of apprenticeship training is
in accordance with its new rules.
BUILDING CAREER POTENTIAL
Advanced Carpentry and Joinery Construction
Building services design engineer (degree) Construction
Building Services Design Technician Construction
Building Services Engineering Craftsperson Construction
Building Services Engineering Ductwork Craftsperson Construction
Building Services Engineering Ductwork Installer Construction
Building Services Engineering Installer Construction
Building Services Engineering Service and Maintenance Engineer Construction
Building Services Engineering Ventilation Hygiene Technician Construction
Carpentry and Joinery Construction
Chartered surveyor (degree) Construction
Civil engineer (Degree) Construction
Civil engineering technician Construction
Commercial Thermal Insulation Operative Construction
Digital Engineering Technician Construction
Dual fuel smart meter installer Construction
Electrical Electronic Product Service and Installation Engineer Construction
Facilities Management Supervisor Construction
Fire emergency and security systems technician Construction
Gas engineering Construction
Geospatial Survey Technician Construction
Highway electrical maintenance and installation operative Construction
Highways electrician / service operative Construction
Housing / property management assistant Construction
Housing/property management Construction
Industrial Thermal Insulation Technician Construction
Installation electrician / maintenance electrician Construction
Junior energy manager Construction
Lifting Technician Construction
Plumbing and Domestic Heating Technician Construction
Property maintenance operative Construction
Railway engineering design technician Construction
Senior housing / property management Construction
Steel Fixer Construction
Surveying technician Construction
Tunnelling operative Construction
New construction standards
New ‘standards’ approved by Skills Funding Agency
The funding system was revised in May 2017, and the Apprenticeship Levy was
introduced to all UK Employers with a pay bill of over £3 million per year. The levy is
set at 0.5% of the value of the employer’s pay bill, minus an apprenticeship levy
allowance of £15,000 per financial year. The funds generated by the levy have to be
spent on apprenticeship training costs. The Government tops up the funds paid by the
employer by 10%.
Government assessment of the reduction in apprenticeship starts
The Government provided the following assessment of the reduction in apprenticeship
starts:
Our reforms, the largest changes to apprenticeships government has ever made, are supporting an increase in the quality of apprenticeships and allowing apprentices to develop their talents and progress their careers. It is only natural that employers, and the apprenticeship market, take time to reflect on what the changes mean and how to maximise the opportunities they represent.
In light of these changes, it is premature to draw definitive conclusions regarding the potential reasons for any fall in starts, on the basis of the limited data available. The Government’s reforms are ultimately intended to invest in the potential of people of all ages and backgrounds.
We are consulting widely with employers, providers and apprentices and are continually reviewing the impact of these reforms.
Apprenticeship Levy
Focus on Candidate Journey
Potensis dedicate a large amount of time
and resource to pastoral care and
supporting the apprentices through their
training with regular monthly 1-2-1s.
Where we can, we mentor and coach the
apprentices in addition to any college
based training to improve completion
success rates.
Stephen Hooper
Strategic Accounts Director
T 07917 639 118
Potensis ATA is an approved Apprenticeship Training Agency (ATA) with the
Department of Education and Skills Funding Agency.
We help to recruit, screen, employ and support apprentices throughout their
apprenticeship period.
If you’d like to learn more about how we help construction organisations optimise
apprenticeships, please email contact Stephen Hooper for more details.