5:20 to 5:35pm
Verbal report
Minutes:
The Economic Growth Manager and the HR Manager attended to update Members on Government apprenticeship reforms and the progress made towards addressing the changes.
The report noted that the UK invested in less training and fell behind in productivity compared to other countries. Apprentices’ career prospects had improved due to the recognition of their contribution to improve productivity which in turn had made apprentices more employable. To increase the number of apprenticeships available, the Government set out new apprenticeship standards in July, 2015 which included the setting of targets, provision of legal protection and introduction of an apprenticeship levy. The target percentage of apprenticeships per workforce was set at 2.3% of the total workforce; Chesterfield Borough Council (CBC) currently employed 1.1% of its workforce as apprentices.
Further apprenticeship reforms were announced in August 2016 when the Government published its proposals for apprenticeship funding to be introduced from May 2017. For smaller businesses, i.e. those which employ fewer than 50 employees, funding had been made available to support their intake of apprentices. The apprenticeship levy would be introduced from April 2017, employers in all sectors that had a pay bill of over £3 million each year were required to pay the levy. CBC would be subject to the apprentice levy which equated to 0.5% of the payroll bill. Further announcements would be made in October 2016 outlining the final levels of funding and government support including English and Maths training; and in December 2016 additional information about employer guidance would be released.
The report looked at how to sustain the required intake of apprentices and how to make the best use of the apprenticeship levy. The Economic Growth Manager outlined the internal response to the government’s targets which included mapping learning and development in the Employee Performance Development reviews, succession planning and actively recruiting where appropriate. There was a proposal to centralise the training budget and start working with local training providers to scope provision and explore delivery models, allowing CBC to provide support for local businesses.
As CBC would be required to pay the apprenticeship levy, there would be an impact on financial resources and growth which would affect colleges and other training providers as well. CBC would be able to access funding from the government through the digital apprenticeship service which could be used to pay for training and assessment for apprentices. The Economic Growth Manager highlighted the importance of working together with local businesses, training providers, schools and the Department for Work and Pensions to help recruit apprentices and identify suitable training provision.
Members expressed a concern that some employers were using apprenticeships as a way to avoid paying the minimum wage and asked if apprenticeships were registered and if each apprentice had a mentor. The Economic Growth Manager replied that there had to be a training contract and scheme that the apprentice and employer signed up to. Apprenticeships could be misused in some areas; however the Government was putting measures in place to protect apprenticeships. The HR Manager added that a new initiative called Trailblazers had been established. A Trailblazer was an employer led group which could develop their own standards and bring in different types of apprenticeships from diverse areas. Looking at CBC employees’ learning and development and matching existing employees to higher apprenticeships would be explored as the target of recruiting 22 new apprentices a year was seen as unrealistic.
Members asked about the range of pay levels available to apprentices. The HR Manager replied that the pay levels for apprentices were dependent on age. Current CBC employees who undertake an apprenticeship would continue to receive their normal wage. At the end of the process there would be an assessment and apprentices would receive a qualification.
Members felt that the apprenticeship reform provided great opportunities, particularly for developing current CBC employees and providing them with the chance to grow with the hope of retaining valuable members of staff. Members thanked the Economic Growth Manager and the HR Manager for attending to provide the report.
RESOLVED –
1) That the report be noted and the plans made to address the apprenticeship reforms be supported.
2) That a further report be brought to the Enterprise and Wellbeing Scrutiny Committee at a date to be confirmed on plans to use apprenticeships to develop our own employees.