This report explores the key enablers and barriers for SMEs in taking on more young apprentices in skilled trade roles, including green jobs. It presents new panel data on the attitudes of trades firms, incorporating insights from interviews with skilled trade workers. Additionally, it discusses policy solutions to support these businesses in effectively increasing their apprentice intake.
KEY POINTS
- A skilled trades workforce is essential for driving the country’s future growth and prosperity.
- For example, the government’s plan to develop 1.5 million homes over the next five years will require electricians, engineers, plumbing and heating engineers, mechanics, manufacturers, and other skilled tradespeople.
- But apprenticeships among younger people have been declining for several years, with SMEs experiencing the sharpest drop – but interest in apprenticeships is rising, and demand still outstrips supply.
- Despite being willing, SME trades firms face several challenges in providing apprenticeships, in particular due to limited engagement with training providers. Most trades firms we spoke to reported having no consistent connection with their local training providers.
- Other barriers included: a negative generational attitudes and a lack of trust, especially among older workers and the cost and administrative burden associated with taking on apprentices.
RECOMMENDATIONS
- Establish an intermediary system that strengthens the relationships between SME trades firms and training providers, forming a cohesive apprenticeship network that offers guidance and support for employers, including administrative and pastoral services. To action this we recommend the following steps.
- The Department for Education increase the coverage of brokerage pathfinders to provide wider support.
- Skills England takes responsibility and oversight of the new intermediary system and set the strategic direction.
- Local authorities (initially) manage the delivery of the intermediary system, before transitioning this responsibility to Careers Hubs.
- Increase the apprenticeship incentive payment for under 19s to £3,000. This should be funded using apprenticeship levy underspend, rather than having it returned to the Treasury.
- Launch a national campaign to promote awareness and positive perceptions of young apprentices. This campaign should be led by the Department for Education and Skills England.
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