Reforming the apprenticeship levy should be part of tackling our perennial underinvestment in skills. Apprenticeship numbers are down 34% since the introduction of the apprenticeship levy and other reforms, with young people bearing the brunt. We’ve argued for greater flex for employers to invest in valuable training outside apprenticeships, but only if they invest more in apprenticeships for young people. We therefore welcome the principle of the levy being used for other types of training and redirecting investment as part of the Government’s Youth Guarantee, though we await the detail. The Government needs to be careful that reforms don’t compromise quality. The 12-month minimum duration for apprenticeships is a somewhat crude measure, but the Government should be cautious about removing this: in other countries, apprenticeships last much longer. Similarly, we need more pre-apprenticeship training, but any new foundation apprenticeships need to be more than employability training to be called ‘apprenticeships’. We await the details of the Government’s plans to judge their impact on widening opportunity and improving outcomes.

The focus on young people in the Prime Minister’s announcement is promising. We’ve seen a considerable drop in apprenticeship starts by young people over the last seven years, while latest data show that the numbers locked out education, employment or training has risen to alarming levels. Combined with skills shortages across the economy, this paints a worrying picture of a disjointed and inadequate skills and employment system that holds back economic growth and young people’s life chances. Pre-apprenticeships are currently a missing part of the system. The Government should learn lessons from the previous traineeships programme and ensure that new support is part of a clear and integrated pathway to apprenticeships for young people. L&W has long called for a Youth Guarantee, which will ensure that all young people can access a job, training place or apprenticeship. Pre-apprenticeships can play a valuable role in breaking down barriers to opportunity and enabling young people to bridge the gap to employment.