Shaping The Future of Apprenticeships

Last July, Alison Morris, Head of Policy at the Skills Federation, hosted a discussion on how the Government could make the apprenticeship system work better for learners and industry. With a number of government announcements proposing changes to the current system, Alison revisits the key issues with Skills Federation members Ann Watson, CEO of Enginuity and Justine Fosh, CEO of Cogent Skills, to see what’s changed – and what the future holds for apprenticeships.

Alison Morris: It has been an eventful few weeks with a raft of government proposals designed to boost the apprenticeship system. Latest government figures show that though there is a small growth (1.3%) in apprentices, it is higher level apprenticeships that are bolstering growth whilst lower level apprenticeships have fallen. What are the main trends you are observing in apprenticeships in your sector?

Ann Watson: We are unfortunately expecting recruitment of apprentices to fall particularly amongst SMEs as a result of the announcements in the budget. An Enginuity survey found that 50% of SMEs said recruitment of apprentices would decrease on 2024 levels. Additionally, we’ve seen an uptick in apprentices seeking new roles due to redundancies and business closures.

Some sectors in engineering and manufacturing, particularly those dominated by SMEs, struggle to recruit apprentices due to inadequate provision at Level 2. Funding levels are not sufficient to attract providers to offer the apprenticeship programmes and as a result employers cannot recruit.

Justine Fosh: At Cogent, we closely track apprenticeship starts across 15 standards. The 2023/24 academic year saw the highest number of starts (around 1,400), including the first Level 3 Polymer Processing Technicians and the Level 7 Pharmacology Scientist standard. 

However, businesses are concerned about rising national insurance costs which is making them rethink their apprenticeship recruitment for 2025 starts. The potential loss of funding for Level 7 apprenticeships is also disappointing as these programmes are having a positive impact across our sector, particularly within Life Sciences. 

Alison Morris: What is your view on the Government’s announcements on reducing the minimum duration of apprenticeships?

Ann Watson: In some cases, a shorter duration may be appropriate, but we must ensure it does not become the default. We must ensure that all apprenticeships have similarly rigorous competence requirements and assessment, so that a shorter apprenticeship is not a less reliable or worthy one – or can be portrayed as such. Engineering and manufacturing apprenticeships must remain rigorous to guarantee competence – after all, “there are no lay-bys in the sky.” If rushed, apprentices may be ill-prepared for assessments and future employment.

Justine Fosh: I agree. We cannot risk devaluing the apprenticeship brand by introducing new products into the market without a robust policy behind it. Competency takes time, particularly in high-hazard industries. 

Our employers have said that shorter apprenticeships could be used as an upskilling tool for digital-based roles, but we need clarity on policy and funding implications.

Alison Morris: What is your view on the changes to English and maths requirements for adult apprentices and end point assessments (EPA)?

Ann Watson: Easing these barriers, particularly at Level 2, is positive. Many struggle with maths when it lacks practical application. For an engineering and manufacturing apprenticeship, maths is an integral part of demonstrating knowledge and competence. Where maths and English are integral to completion of the apprenticeship, then the Government must ensure there is sufficient support and teaching time.  

We do have concerns about the emergence of differing rules for apprentices under and over 19, and notably the fairness of this approach as well as what it may imply about competence and the consistency of outcomes; competence is not age dependent.

Justine Fosh: Cogent has long campaigned for contextualised maths and English within apprenticeships. Many of the roles within our sector require a high level of both English and maths, and we are concerned that this policy could have long-term negative effects on career progression. Training providers should continue encouraging functional skills programmes.

Ann Watson: On EPAs, we need more details, but they must remain robust, properly demonstrating the competence of the apprentice and to protect the reputation of the apprenticeship. Employers trust apprenticeships because they ensure competence, which is critical in safety-sensitive sectors.

Justine Fosh: I totally agree. Competency is key, and our employers value the independence of assessment within the Apprenticeship standards. 

A balance between rigorous on-programme qualifications and independent EPA is crucial. If well-designed, the new policy could be beneficial for all parties. 

Alison Morris: What are your hopes for the upcoming announcements on Foundation and Level 7 apprenticeships?

Ann Watson: The best outcome would be funding for both, in my sector we need skills across all levels. Many large employers have come to terms with the fact that they may need to sacrifice their level 7 funding for the greater good of the sector. 

Justine Fosh: Science employers have adopted Level 7 apprenticeships into their businesses, both as part of upskilling and early talent, which is bringing people into the businesses who may not have had those opportunities before. We hear inspiring stories of individuals coming into life science through L7 routes, which supports social mobility and we are concerned that these opportunities will be lost if funding is cut. 

Alison Morris: Apprenticeship success rates are still low at just over 50%. What are you observing in your sector and is business confidence affecting apprenticeship recruitment?

Ann Watson: SMEs have struggled since the levy’s introduction, and access to provision remains a barrier. The complexity of the system is another challenge. 

Our own research shows business confidence has fallen sharply with only 1 in 10 employers feeling optimistic about 2025. Key concerns include rising employment costs, energy prices and skills shortages.

Apprenticeships are absolutely integral to the success of the advanced engineering and manufacturing sector. We can see the negative impact on employers when they are unable to recruit apprentices into their business, so it is vital that we boost the health of the apprenticeship system to benefit individuals, employers and the wider economy.

Justine Fosh: For many of the standards that we closely monitor, we don’t see the low success rates; in fact, from the 2022/23 academic year, they had an average 71% success rate. The policy change on functional skills may help, but employer commitment to completion is key. 

Science employers feel in limbo as they await the decision on the L7 funding, levy flexibilities and assessment changes. There’s a lot to digest alongside broader economic challenges.  

But overall there are positive stories across the sector, so the future is looking bright for apprenticeships contributing to boosting productivity and growth in our industry.

Alison Morris: We have heard from Jacqui Smith that flexibilities for non-apprenticeship programmes funded through the levy are likely to be targeted and limited – at least in the short term. What are your thoughts on this?

Ann Watson: The Government faces a tough balancing act. Prioritising apprenticeships that bring in new talent whilst also supporting the existing workforce to progress and develop new skills is essential.  It is predicted that 75.5% of the 2043 engineering and manufacturing workforce is already in work – upskilling and reskilling is becoming much more important.

With a sector as complex as engineering and manufacturing it is very difficult to identify non-apprenticeship programmes that would add value across the sector as a whole.

Justine Fosh: Employers want more flexibility, but fiscal constraints mean difficult choices. Greater transparency around the levy would be beneficial. 

Alison Morris: How can sector skills bodies help shape apprenticeship policy? 

Ann Watson: Sector skills bodies are the eyes, ears and often the voice of the sector, particularly for SMEs. A productive and thriving engineering and manufacturing sector is as much our goal as it is government’s. The challenge around closing skills gaps is still here after decades of talking about it – a genuine partnership with government and sector skills bodies could finally shift the dial on this long-standing challenge.

Justine Fosh: The science and technology industry is vast and we have a unique overview of the skills requirements across the sector and can represent these as a coherent voice. Government collaboration with sector skills bodies would enhance efficiency and ensure that policies reflect industry needs. 

Alison Morris: And finally, what should be the Government’s priority to support your sector right now?

Ann Watson: One clear ask is a need for an SME strategy as part of the industrial strategy – SMEs are key to supply chain success. We need government to be working with all stakeholders in the skills eco-system to support growth and ensure that any changes deliver real impact without compromising on quality, rigour and reliability.

Justine Fosh: The Government must prioritise a clear, strategic approach to skills development, particularly in critical sectors like Life Sciences, Green Energy and Defence. We need Skills England to work in close collaboration with government departments to ensure that skills policy aligns with industry expectations and delivers high-quality training that meets both employer and learner needs. 

For the past decade we have had a clear view of what apprenticeships are. But with new products being introduced reducing the minimum time and introducing foundation apprenticeships which won’t be solely based on occupational standards, as well as taking away the full independence of assessment, we need to understand what the new vision for apprenticeships is and how we can protect the brand; something we have all worked tirelessly to build. 

By Alison Morris, Head of Policy Skills Federation; Ann Watson, CEO of Enginuity and Justine Fosh, CEO of Cogent Skills