Apprenticeship Growth Plan 2018 - 2020 Version 0 · Liverpool City Region Apprenticeship Growth Plan 2018 - 2020 Page 7 A plan to drive Apprenticeships This Apprenticeship Growth

Apprenticeship Growth Plan 2018 - 2020

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Liverpool City Region Apprenticeship Growth Plan 2018 - 2020

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FOREWORD Steve Rotheram Cllr Ian Maher Liverpool City Region Metro Mayor Liverpool City Region Portfolio Lead, Skills and

Apprenticeships


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1. EXECUTIVE SUMMARY

Introduction The Liverpool City Region Combined Authority welcomes the Apprenticeship Growth Plan as a key document that will develop collective action, galvanise and promote collaborative activity by Colleges and training providers and ensure a co-ordinated approach to driving forward apprenticeship delivery over the next three years. The Liverpool City Region Apprenticeship Growth Plan signals the continued importance of apprenticeships to the City Region, residents and the employers who drive our local economy. The Plan aims to improve the way the apprenticeship system and reforms work for the City Region and sets out a vision for apprenticeship growth through:

Increasing the volume of apprenticeships opportunities available;

Expanding the diversity of frameworks and standards available to residents and employers;

Improving an apprentice’s ability to progress to higher qualification levels including degrees; and

Developing a higher standard of quality for apprenticeships offered and delivered. The Apprenticeship Growth Plan has been developed in direct response to the Liverpool City Region Area Review of Post-16 Education and Training that reported on 10th January 2017. The Area Based Review recommended an ‘apprenticeships growth plan to drive

forward targets for an expansion of the breadth and volume of apprenticeships’. The

Apprenticeship Growth Plan has been developed in conjunction with employers, stakeholders, local authorities, colleges and independent training providers and offers a truly collaborative approach to ensuring a greater alignment between the demand for and supply of high quality apprenticeships. What we are trying to achieve The Combined Authority recognises that the sector is undergoing a period of significant change and recent apprenticeship reforms have impacted extensively on national and local delivery. It is therefore a difficult time to deliver apprenticeship growth, however, we remain committed to developing the apprenticeship programme and the Growth Plan sets out a clear vision for the City Region, which is to: Increase the volume, breadth and relevance of apprenticeships across the Liverpool

City Region enabling more employers and learners to access and benefit from

apprenticeships.

This Growth Plan is a call to action for stakeholders across the City Region to work together under a shared ambition to grow and develop the apprenticeship programme and create the right environment for apprenticeship success. Our aspiration is to deliver:

20,000 apprenticeships per annum by 2020


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We will ensure the Apprenticeship Growth Plan is a living, breathing document which will be

refreshed regularly to ensure our aspiration and actions reflect local needs and remain the

right ones to enable growth. The Combined Authority will continue to adapt and respond to

new policy developments and will use the Apprenticeship Growth Plan to help monitor

progress in comparison to national and other City Region’s progress, stimulating the market

and implementing enabling actions where necessary to support local successful delivery.

Key Challenges The Combined Authority recognises that it is a difficult time to deliver apprenticeship growth and through consultation in the development of this plan have identified a number of key challenges that without collective and collaborative action could inhibit programme delivery. These include:

The impact of apprenticeship reform;

Apprenticeship awareness and understanding amongst employers;

Falling 16-18 apprenticeship participation alongside demographic changes;

A misalignment between employer demand and the availability of provision;

The technical skills gap across Liverpool City Region compared to national averages;

and

The complexity in navigating and fragmentation of the national and local skills system.

Priorities for Growth

The Apprenticeship Growth Plan sets out the five key priorities for action which will address

local growth challenges, tackle key areas of market failure and build on the strengths and

opportunities that already exist.

Priority 1: Developing better data analysis and availability across the City Region to inform

programme and curriculum planning;

Priority 2: Stimulating employer demand for apprenticeships;

Priority 3: Supporting more individuals to follow apprenticeship skills progression routes;

Priority 4: Extending the breadth and delivery of high-quality apprenticeships;

Priority 5: Creating the right environment for apprenticeships to develop.

Key Actions to Drive Growth

Consultation with employers, Colleges, providers and other key stakeholders has enabled

the development of a range of actions which will enhance the delivery of apprenticeships

across the Liverpool City Region. The key actions to drive apprenticeship programme

performance locally include:


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The Combined Authority will seek alternative sources of funding for the Apprenticeship Hub to provide greater stability and allow the Apprenticeship Hub to take the lead on the implementation of the Apprenticeship Growth Plan;

The Combined Authority will launch an Apprenticeship Pledge to gain commitment from public and private sector employers, Colleges and providers and other stakeholders to apprenticeship growth;

The Liverpool City Region Local Enterprise Partnership will facilitate greater employer engagement in the planning and delivery of apprenticeships;

The Apprenticeship Hub will promote the breadth and diversity of apprenticeships to demonstrate how they can help address a wide range of skills gaps;

The Combined Authority will develop a Liverpool City Region Apprenticeship Portal to simplify and enhance access to apprenticeship vacancies;

The Combined Authority will continue to lobby Government as part of ongoing devolution discussions to retain unallocated levy funding within the Liverpool City Region;

The Combined Authority will develop a capacity building fund via ESF to support Colleges and providers based in the City Region to establish provision of new Standards, test new markets or deliver different sector subject areas to enhance the breath of provision available locally;

The Combined Authority will develop, via ESF, a Quality Improvement Fund, providing a package of support to improve the quality of apprenticeship delivery locally for Colleges and providers with an existing OFSTED Grade 3 for the delivery of Apprenticeships; and

Colleges and training providers will set out their individual plans for growth in outcome agreements to inform the devolution of the Adult Education Budget.


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2. AN AMBITION FOR GROWTH

There are key economic and social challenges that Apprenticeship delivery can support the

Combined Authority to address. Employment rates are less favourable locally than national

levels, attainment levels at 16 are persistently below national averages as is the proportion

of residents without qualifications. Apprenticeships are part of the solution to closing the gap

– they are vital to realising the Liverpool City Region’s ambition for economic growth and

are the key driver to improving the skills of local residents whilst in work and later in life

without the risk of personal debt. Apprenticeships remain a fundamental tool in addressing

skills needs that will improve the productivity of local employers in line with the ‘People’

section of the Industrial Strategy.

The Apprenticeship Growth Plan should be read alongside the Liverpool City Region Skills

Strategy, Skills Investment Statement 2018/19 and wider Single Growth Strategy and forms

part of a suite of documents that aim to improve skills and productivity levels across the City

Region. This plan sets out a clear vision for how Liverpool City Region can drive forward

apprenticeship growth and achieve expansion of the breadth of sectors, ability to progress

to higher qualification levels and volume of apprenticeships available locally.

The Apprenticeship Growth Plan has been developed in direct response to the findings of

the Liverpool City Region Area Based Review of Post-16 Education and Training1, which

recommended an ‘apprenticeship growth plan to drive forward targets for an expansion of

the breadth and volume of apprenticeships’ to ensure that we can maintain and grow our

apprenticeship offer.

The Liverpool City Region Apprenticeship Vision

The Apprenticeship Growth Plan aims to ensure that apprenticeship provision reflects the

changes in Government funding priorities for apprenticeships and expectations for employer

co-investment, future demands and our local contribution to national targets. The

Apprenticeship Growth Plan has been developed in conjunction with employers,

stakeholders, Colleges and independent training providers and offers a truly collaborative

approach to ensuring a better fit between the demand for and supply of high quality

Apprenticeships.

1 https://www.gov.uk/government/publications/liverpool-city-region-further-education-area-review-report

To increase the volume, breadth and relevance of apprenticeships across the

Liverpool City Region enabling more employers and residents to access and

benefit from apprenticeships.


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A plan to drive Apprenticeships

This Apprenticeship Growth Plan is a call to arms for stakeholders across the City Region

to collaborate through a shared ambition to grow and develop apprenticeship delivery

locally. It will focus the activity of all those who have a role to play in the learning and skills

sector and through the achievement of an aspiration to deliver:

The Combined Authority will take the recommendations developed as a result of

consultations with stakeholders to inform how resources are invested to support

apprenticeship growth including European Social Funds and future Skills Capital

investment, ensuring we maximise opportunities to support the supply and demand of

apprenticeships in the City Region. The Combined Authority will demonstrate and lead a

shared commitment with stakeholders to develop the Apprenticeship programme arising

from the actions in the Plan. This will include continuing to champion the skills needs of the

Liverpool City Region as part of ongoing devolution discussions with Government, informing

our lobbying position over unspent levy.

3. THE CONTEXT FOR GROWTH Apprenticeships have undergone an unprecedented period of reform over recent years and

the Combined Authority understands that rapid and concurrent changes in policy have had

a huge bearing on the sector’s ability to deliver all aspects of apprenticeships. Policy

changes have impacted programme design, delivery requirements, employer funding and

time requirements. However, apprenticeships remain important as can be seen from the

positioning of apprenticeships within the wider context of the Government’s Industrial

Strategy and vision for Technical Education.

There has therefore never been a greater need for a localised collective and collaborative

plan for enabling growth in the volume, diversity of frameworks and standards and

progression routes available to employers and learners. The programme of reform and

policy change provides the national background for the Liverpool City Region Apprenticeship

Growth Plan. The Plan’s actions are designed to minimise College and provider risks

associated with large-scale reform, prevent market failure in the short term and to further

facilitate Colleges and providers to take advantage of the new opportunities presented by

the funding and policy reforms. The actions also aim to support more employers to articulate

their skills requirements, improve their understanding of apprenticeships and increase the

number of employers benefitting from apprenticeship high-quality, relevant apprenticeship

delivery.

20,000 apprenticeships per annum by 2020


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The Changing Policy Context Apprenticeships have long been at the heart of Government skills policy. In December 2015

the Government set out their ambition of achieving 3 million apprenticeship starts across

England by 20202. There has, since then, been a succession of national policy publications

including the Post-16 Skills Plan (2016) and the Public Sector Apprenticeship Targets

Regulations (2017) together with full re-procurement of apprenticeships by the Education

and Skills Funding Agency all of which fundamentally transform the apprenticeship system.

More specifically recent changes include:

An apprenticeship levy for employers with a payroll of over £3m;

The routing of apprenticeship funding through a digital account;

Introduction of degree level apprenticeships;

Employers with over 50 staff co-investing 10% of the cost of training;

Flexibility for employers to negotiate the price of apprenticeships within set bands;

The enforced requirement for 20% off the job training; and

The introduction of new standards and independent end point assessment.

The challenge for Liverpool City Region is to develop a renewed local apprenticeship

infrastructure that supports Colleges, providers and employers to harness the advantages

of policy changes and reduce the risks of change, whilst reforms to programme, funding and

content are embedded.

Historically the introduction of new apprenticeship policy has always had an adverse impact

on the performance of the programme e.g. the extension in minimum lengths of stay to 12

months and the removal of programme led apprenticeships; however, the scale of the most

recent reforms and the resulting impact is unprecedented. National data indicates that

between February and April 2017 there was a 47% increase in apprenticeship starts

compared to the same point a year earlier. This cushioned the decline experienced post-

reform between May and July 2017 where apprenticeship starts decreased by 61%.

The Combined Authority understands the issues and challenges faced by the skills sector.

The Apprenticeship Growth Plan will therefore be a living, breathing document which will be

refreshed regularly to ensure the actions remain relevant. The Combined Authority will

continue to adapt and respond to new apprenticeship policy developments and will use this

plan to help take advantage and de-risk the need for change, stimulating the market and

supporting Colleges, providers and employers to adapt and develop.

A Priority for the City Region The City Region has a strong history of apprenticeship delivery and the programme has grown year on year since 2014/15. In 2016/17, 18,580 individuals started their apprenticeship journey and over 9,500 individuals annually complete their apprenticeship. The Combined Authority is ambitious in its aspirations for apprenticeships across the

Liverpool City Region. The Liverpool City Region makes a significant contribution to national

2 English Apprenticeships: Our 2020 Vision, December 2015


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delivery accounting for approximately 3.6% of England’s total apprenticeship starts. The

Combined Authority is committed to continuing the important role played by the City Region

in delivering the national target, however the Combined Authority is equally committed to

ensuring the City Region delivers the right apprenticeships for local economic and learner

needs and as such has developed a series of supporting aspirations, which look to extend

the depth, range and level of delivery in addition to volume growth.

The Apprenticeship Growth Plan builds on existing commitments and aspirations across the

City Region and takes into consideration the recommendations of the Liverpool City Region

Combined Authority Scrutiny Panel, who undertook a comprehensive review of

apprenticeships in 2016. In addition, in 2016 the Liverpool City Region Apprenticeship Hub

published its five-year strategy3 which cemented the commitment of partners to growing the

number of apprenticeship starts particularly at higher and degree level, increasing the

proportion of completions, improving the relevance of the local offer and ensuring that

apprenticeships are viewed as a high-quality option by all. These sentiments were echoed

and built upon in the Metro Mayoral manifesto and remain the relevant ambitions for the City

Region, although as part of a revised approach in light of the recent reforms and changing

apprenticeship landscape.

The Liverpool City Region Area Based Review4 made a number of key recommendations

which inform this growth plan, including increasing apprenticeship delivery by General

Further Education College by 50%, the creation of a Careers Hub and refocusing the

Apprenticeship Hub to take a more strategic approach.

The Combined Authority has consulted employers based within the City Region on the

current skills gaps they face and their future skills through the Liverpool City Region

Combined Authority Employer Skills Survey 2017. The Combined Authority has also worked

with delivery organisations and strategic partners to understand Colleges and training

providers’ challenges in meeting these skills needs through the development and

consultation on a Skills Investment Statement for 2018/19, a longer term Skills Strategy and

through consultation on the Apprenticeship Growth Plan.

Liverpool City Region has the opportunity through devolution to establish and exercise

greater control over expenditure on skills and training. The Combined Authority will continue

to make a strong case to Government to provide further powers and flexibilities associated

3 Liverpool City Region Apprenticeship Hub – Strategy and Strategic Action Plan 2015-2020 (2016) 4 Liverpool City Region Area Review Final Report, January 2017

GROWTH PLAN - SUPPORTING AMBITIONS

To maintain the volume of 16 -18 apprenticeships measured as the proportion of

the annual cohort entering an apprenticeship route;

To expand the breadth and relevance of provision, increasing the range of

frameworks and standards available through local provision;

To support and improve the quality of apprenticeships delivered locally; and

To increase the proportion of starts at advanced and higher/degree level

apprenticeships.


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with apprenticeships, including retaining unspent levy funds from local employers and

testing new models of delivery for Apprenticeships.

4. ADDRESSING GROWTH CHALLENGES FOR THE CITY REGION It is recognised that the impact of Apprenticeship reforms and changes in the market has created a difficult time to deliver apprenticeship growth. This plan identifies the key challenges that without collective and collaborative action could inhibit programme delivery and future growth. These are:

The impact of apprenticeship reforms;

Apprenticeship awareness and understanding amongst employers;

Falling 16-18 apprenticeship participation and local demographic impacts;

An imbalance between employer demand and the availability of provision;

The issue of low attainment of English and maths at age 16 compared to national averages in some areas;

The technical skills gap that exists across Liverpool City Region; and

The complexity and fragmentation of the local skills system.

The Apprenticeship Growth Plan explores the specific aspects of the socio-economic, demographic and policy context in relation to the City Region’s aspiration for apprenticeship growth and outlines the key actions Colleges and training providers, partners and stakeholders, and the Combined Authority will take as a result. Apprenticeship reforms are impacting delivery Overall apprenticeship delivery across the Liverpool City Region in 2016/17 continued to hold steady compared to previous years and despite the uncertainty created by apprenticeship reforms starts increased by 1.4%. This was in contrast to both the regional and national trend where volumes of apprenticeship starts fell by 2.0% and 3.7% respectively. However, whilst apprenticeship reforms could be seen to still be in their infancy, the scale of the immediate impact on apprenticeship starts across the City Region cannot be underestimated. The headline increase achieved in 2016/17 masks a sharp increase in Apprenticeship starts prior to reforms taking effect in May 2017. This sudden rise is not in line with employers’ previous recruitment patterns in the City Region and could be attributed to the start of financial contributions being a requirement from May 2017. The rise has effectively cushioned a significant dip in new Apprenticeship starts post-May 2017. Historic data and recruitment patterns are therefore no longer a robust indicator of future apprenticeship delivery and the information is not yet available to establish a true understanding and new equilibrium of apprenticeship performance post-reform. Providing an accurate baseline and potential trajectory for apprenticeship delivery will be a key aspect of a planned Apprenticeship data dashboard for the City Region.


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Feedback from local5 and national providers6 helpfully provides greater clarity on the current impact of reforms both on apprenticeship starts and employer behaviour, including:

There is still a level of confusion over the reforms from an employer perspective;

Many employers from sectors that have traditionally made in-kind rather than financial contributions to Apprenticeship delivery are now required to make a cash co-investment of 10% of training costs; they do not yet recognise the economic benefit of apprenticeships and as a result may not commit to future starts;

Levy-paying employers are taking time to reflect and develop their spending plans; and

The reinforced requirement for employers to pay staff time for 20% off the job training is significantly impacting on apprenticeship take up in some sectors where this is not the traditional method of delivery.

All these factors could be contributing to the recent drop in Apprenticeship starts compared

to this time last year and have a detrimental effect on the viability and capacity of the provider

base locally in some sectors if the trend of falling starts is sustained.

As a result of the changes to the programme the Combined Authority has been prudent in our aspirations for growth over the 3-year lifetime of this plan, culminating in a final year target for 2019/20. The Combined Authority will continue to monitor local apprenticeship performance in comparison to national outcomes to gain a deeper understanding of the impact that reforms and any further changes are having on local apprenticeships volumes. Collectively local Colleges, training provider and stakeholders need to produce and share information and intelligence from a wide range of sources to develop a collective understanding of apprenticeship delivery and ensure the solutions and actions we take are the right ones. The Combined Authority will invest in an Apprenticeship Data Dashboard and will review the Apprenticeship Growth Plan on a bi-annual basis to check that actions set out in the Apprenticeship Growth Plan are having the desired impact.

5 Greater Merseyside Learning Provider Federation Survey September 2017 6 AELP National Conference October 2017

KEY ACTIONS:

The Combined Authority will increase its data analysis capacity and develop a Data Dashboard of local Apprenticeship outcomes;

The Apprenticeship Hub will undertake a further review of apprenticeship performance data including 2017/18 programme performance to inform post-reforms trend analysis;

The Greater Merseyside Learning Provider Federation will be requested to commission an annual survey of members to monitor apprenticeship participation post reforms; and

The Apprenticeship Hub will review the relevance and impact of actions within the Apprenticeship Growth Plan on a bi-annual basis.


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Too many employers still do not understand or engage with apprenticeships Apprenticeships provide opportunities for business and individuals with almost 90% of employers that use apprenticeships as a way for developing their workforce believing that their business has benefited. Whilst apprenticeship reforms aim to put employers in the driving seat, in determining which College or provider they select through employer routed funding and in developing the content of new standards, feedback gathered locally7 demonstrates that many employers either don’t understand what the changes mean for them or simply don’t know where to go for support. Apprenticeship recruitment by non-levy paying SMEs is vital to Liverpool City Region’s ability to continue to contribute a proportionally larger volume of starts per capita to the national target of 3 million apprenticeship starts by 2020 than other City Regions. Circa 99% of the 49,125 business units across Liverpool City Region are SMEs. If future Government strategy for Apprenticeships is to meet the majority of the 3 million targeted Apprenticeship starts by 2020 through large levy paying employers, this would put recruitment and delivery of Apprenticeships in Liverpool City Region at a disadvantage due to our large volume of SMEs. SME engagement in Apprenticeships without a local National Apprenticeship Service presence presents a particular engagement challenge for local stakeholders, Colleges and training providers due to both the scale and diversity of the local small and medium sized enterprises. The City Region has fewer large levy-paying employers compared to many other city region areas; there are however approximately 400 levy-paying employers with employment bases within the Liverpool City Region. Renewed and enhanced efforts to broker new relationships with un-engaged local levy paying employers could maximise local levy paid starts and support levy paying employers to invest in Apprenticeships. A large proportion of the City Region’s workforce (22.5%) is employed by public sector bodies. As large levy paying local employers this provides the City Region with a significant new market opportunity for growth in Apprenticeship starts. Government expects the Public Sector to increase its contribution to apprenticeship starts albeit at a time of austerity to a minimum of 2.3% of their workforce being an apprentice at any one time. Public sector employers will also require support to develop their internal training policies and external procurement systems to enable greater volumes of apprenticeship starts for both their existing workforce and to determine whether new recruitment should be advertised as an Apprenticeship. The Apprenticeship Growth Plan therefore proposes a segmented approach to employer engagement by employer type in developing new markets that will enable new Apprenticeship starts. The Liverpool City Region has seen significant growth in the proportion of people in employment over the last five years and a corresponding fall in unemployment. Employers are however reporting greater difficulties in recruiting skilled staff, demonstrating a tightening in the labour market. If the City Region is to maximise its economic potential, workforce development will need to include employers’ recruitment of new young apprentices and supporting those who are economically inactive into work with training. Measures will also need to be taken to re-train the existing workforce, as retirement age increases, potentially through a mature apprenticeship route.

7 Greater Merseyside Learning Provider Federation Survey September 2017, Growth Plan employer consultation, LCR Employer Skills Survey, 2017


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Collaboratively stakeholders will need to support employers including those employing under 50 people; non levy paying (those contributing 10% to training costs); levy paying; and public sector; to understand the economic and social benefits of recruiting and developing their workforce through apprenticeships. Apprenticeships need to become the default mechanism and funding route for effective workforce development solutions for employing new staff and training existing staff. To facilitate this Colleges, training provider and stakeholders including the Apprenticeship Hub will need to showcase the advantages of recruiting young people and adults who may initially not be perceived to have the skills required and investing in their skills development to be the talent of the future. 16-18 apprenticeship numbers are falling Apprenticeship starts volumes for 16-18 year olds in 2015/16 are comparable (4,200) to the previous year’s 4,160 starts in 2014/15. However, 2016/17 data shows a sharp fall in numbers to 3,730 equating to a 10.9% reduction compared to 2.9% in the North West and 7.8% nationally. This means that over 450 fewer young people aged 16 to 18 started an apprenticeship in Liverpool City Region than in the previous year. Contextually the demographics of 16-18-year-old cohort in the City Region is declining year on year; this will have a long-term impact on the working age population, the labour market and the numbers of young people engaging in Apprenticeships and study programme starts in the local FE sector. This decline in residents aged 16-18 is more significant in Liverpool City Region than elsewhere. The volume of 16-18 aged residents in Liverpool City Region is not expected to return to 2014 levels until 2028, 4 years later than the North West and five later than in England. Whilst a fall in the volume of 16-18 year olds Apprenticeship starts in the City Region may have been expected due to a declining local cohort, Apprenticeship starts as a proportion of the 16-19 cohort has also seen a reduction from 8.1% in 2015/16 to 7.4% in 2016/17. This means a lower proportion of the cohort are choosing the apprenticeship route. Partners are reporting an increase in young people being encouraged to stay on at school and inconsistency in access to information, advice and guidance on apprenticeships for young people.

KEY ACTIONS:

The Apprenticeship Hub will develop a market segmented marketing campaign and employer toolkit to raise apprenticeship awareness;

The LEP will facilitate improved employer engagement and promotion of apprenticeships;

The Combined Authority will work in partnership with the National Apprenticeship Service to support levy paying employers understand how apprenticeships could benefit their business; and

The Combined Authority will work with local authorities and other public sector bodies to help deliver the 2.3% target


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Prior to apprenticeship reforms the training of 16-18-year-old apprentices was free at the point of delivery to employers, with Government contributing all of the training costs. This effectively provided an incentive alongside a £1,500 recruitment incentive for employers who were new to recruiting young apprentices. Post reforms employers are expected to either pay the entire training cost through the levy or a 10% contribution if they employer over 50 staff. Employers may now be reluctant to take on a 16-18 year-old, who may be seen as not being job ready in comparison to recruiting older, more experienced candidates. Findings from the Employer Skills Survey 2017 and feedback from providers evidence an increase in the number of young people who are not ready for an apprenticeship, who have not attained English and maths skills at school, experience social issues, learning difficulties and, in particular, mental health needs, which prevent them from easily accessing apprenticeship opportunities at age 16. In addition, the take up of Traineeship opportunities across the City Region is low, with the programme being perceived as unattractive by young people due to the lack of any form of wage or bursary support. Therefore, to maintain the volume of 16-18 apprenticeships delivered the City Region will need to increase the proportion of local residents aged 16 to 18 entering apprenticeships by informing and advising more young people of the benefits of the apprenticeship route and ensuring high-quality progression pathways are available for those who are furthest away from the apprenticeship entry point. Collectively the City Region’s Apprenticeship stakeholders need to promote inclusivity and equality of apprenticeship opportunities and take positive action to encourage and support more employers and learners to engage with apprenticeships from diverse backgrounds and needs. The Combined Authority will build on the excellent work already undertaken by the Apprenticeship Hub and others in engaging with schools, young people and their parents, extending networks of Young Apprentice Ambassadors and Employer Ambassadors and advocates who can inspire others to think about apprenticeships more positively and engage with the programme.

KEY ACTIONS:

The Combined Authority will seek to commission additional wrap-around support (including mentors) for 16-18 year olds at risk of being NEET from European Social Fund and local match funding;

Partners will establish a centralised approach to apprenticeship Careers Education, Information, Advice and Guidance through the Liverpool City Region Careers Hub;

The Apprenticeship Hub will continue to extend the Liverpool City Region Young Apprentice Ambassador Network to raise the awareness of apprenticeships with schools and young people;

The Combined Authority will develop a Liverpool City Region Apprenticeship Portal to simplify and enhance access to apprenticeship vacancies; and

The Combined Authority will ask Government through devolution discussions for access to unspent Apprenticeship Levy funding to develop a Traineeships bursary for 16 to 23 year olds as a progression route to Apprenticeships.


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There is latent demand in the system for apprenticeships with potential for greater alignment between employer demand and College and training provider supply Historically apprenticeship delivery in the Liverpool City Region has been concentrated in a small number of high volume employment sectors8, with high levels of replacement demand and sectors where apprenticeships are the recognised route of career development. National data and the results from the Greater Merseyside Learning Provider Federation Provider Survey (November 2017) indicates that the apprenticeship reforms are having a variable detrimental impact across sectors aligned to employers’ willingness and ability to co-invest in the cost of training and the requirement for apprenticeships to include 20% of paid time for off the job training. Demand has remained buoyant in sectors where traditionally delivery models involve day release, such as hairdressing and engineering; however, the health and social care sector has seen apprenticeship numbers fall significantly. At the same time, the Combined Authority Employer Skills Survey 2017 reports that employers in Liverpool City Region experience a larger workforce skills gap (21%) than nationally (14%). Businesses not currently employing apprentices cited a number of factors including the lack of relevant provision, lack of resources and the lack of suitable candidates. Encouragingly of the over 1,800 businesses that responded to the Combined Authority Employer Skills Survey 2017, 24% reported that they will probably recruit apprentices in the next twelve months and 14% indicated that they planned to upskill their existing workforce through apprenticeships in the coming year. Collectively Apprenticeship stakeholders including Colleges and training providers need to work with collaboratively to diversify apprenticeship provision to meet the demand of employers in new markets in order for the City Region to maximise the skills needed for future economic growth. The Combined Authority is committed to supporting locally based Colleges and providers to increase the breadth of apprenticeships available and will use this Growth Plan to inform the commissioning of any future skills capital funding. The Combined Authority will also encourage the development of apprenticeship standards, working with employers to develop new apprenticeship pathways in key growth sectors, learning from the work already undertaken in the Maritime sector9. In order for apprenticeships to become even more valued by employers and learners they must be of the highest quality. All age-all level achievement rates for the Liverpool City Region, whilst close, are below the national average and there are sectors and areas of learning where clear improvement is required, from both an individual institutional level and collectively. Over half of Colleges based within Liverpool City Region have at the time of publication of this Plan been graded as ‘requires improvement’ or lower by Ofsted for apprenticeships and a number of independent training providers are no longer delivering locally having lost their contracts due to Ofsted considering their provision inadequate. The Combined Authority is keen to support Colleges and providers in these circumstances with additional support.

8 61% of LCR apprenticeship starts in 2016/17 were in Business Administration & Law and Health, Public Services & Care – SFR Provisional Data, Geography Data Pack, October 2017 9 Maritime Superskills ESF Project – Liverpool John Moore’s University


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Whilst the quality of apprenticeships is the responsibility of individual institutions, there are collective actions we can take to help drive quality improvement and support providers to adapt to new markets and learner requirements. Equally there is a need for College and provider collaboration to provide peer support and review to collectively improve the quality of provision delivered within Liverpool City Region. The Combined Authority will help to de-risk the development of new standards within new markets and new areas of learning that meet local employer demand at a time when providers are focusing on enhancing the quality of existing programmes.

A technical skills gap still exists The qualification and resultant skills levels of residents in the City Region has increased in recent years; however, there remains significant gaps at all levels to national averages, with progress earlier in life key at age 16 an inhibitor in many cases to the progression into advanced technical and higher-level skills in the immediate years after school age. Attainment of Level 3 by age 19 is much lower in Liverpool City Region than national rates as a result. The impact of lower Level 2 attainment through school and the need to repeat English and maths qualifications between the ages of 16 to 18 impacts on apprenticeship delivery and likely success and the age at which Liverpool City Region residents may progress to advanced and higher Technical Qualifications. The growth of apprenticeships and Technical Education options for Liverpool City Region residents is key to delivering the advanced and technical qualifications required for economic growth. The opportunities for students to develop the technical skills that employers need are lost between the ages of 16 and 18 whilst students ‘catch up’ on English and maths and gain their first Level 2 qualifications in too many cases in Liverpool City Region. The City Region does not benefit from increases in Level 2 attainment for residents between the ages of 16 and 19 and whilst the FE sector is clearly adding value, this is not

KEY ACTIONS:

The Combined Authority will introduce a capacity building fund via ESF to support the development of new Apprenticeship standards that support local employers needs for Colleges, training providers and Universities based within the City Region;

The Combined Authority will seek to establish a capacity building fund, via ESF, to support providers to move into new sectors and areas of learning thereby enhancing the breadth of Apprenticeship provision available locally;

Local stakeholders will collectively support employers to better articulate their specific technical skills needs through the Growth Hub, LEP Sector Boards and Provider Curriculum Networks;

The Combined Authority will develop, via ESF, a Quality Improvement Fund, providing a package of support to improve the quality of apprenticeship delivery for locally based Colleges and providers; and

The Apprenticeship Hub will promote the breadth and diversity of apprenticeships to demonstrate how they can help address a wide range of skills gaps.


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sufficient to counteract the below average, earlier in life, lower attainment of City Region residents. Employers in Liverpool City Region require increasingly higher skilled roles over the past 10 years, with Level 4 occupations growing at a greater rate than recorded nationally. 48% of employers recently surveyed in the City Region10 reported a number of specific technical skills gaps, most acutely in IT, manufacturing and construction. Employers also reported a need for leadership and management skills to be improved. Colleges and training providers have responded accordingly with fewer Level 2 Apprenticeship programmes and growing volumes of advanced and higher-level apprenticeships in line with the Government and local ambitions, but this comes at an opportunity cost of training older workers rather than dedicating apprenticeship supply resources to younger apprentices in lower level roles. In 2016/17 the proportion of Apprenticeship starts which were Level 2 reduced to 51.3% from 55.2% in 2015/16. The trend for increasing apprenticeships at Level 4 and above continues with a 33.06% increase in 2016/17 starts in the City Region compared to 29.68% in the North West and 32.71% nationally. The challenge is to continue to expand into new markets for higher level apprenticeship starts whilst maintaining employer interest and College, training provider and University capacity to deliver starts of young apprenticeships at intermediate levels. The City Region’s employers also need to continue to expand apprenticeship take up at advanced and higher levels, including degree level apprenticeships if the local economy is to keep pace with other City Regions nationally. The role of Higher and Degree level apprenticeships also needs to be more clearly defined as a progression route from technical education as part of local preparations for further policy changes resulting from the Government’s Post-16 Skills Plan and Industrial Strategy. There is a need to ensure that that provider capacity is in place locally to meet this need from employers for higher level and degree training.

10 The Liverpool City Region Employer Skills Survey 2017

KEY ACTIONS:

The Apprenticeship Hub will broker relationships between FE and HE providers to support the development of progression pathways to higher and degree level apprenticeships;

The LEP will utilise its Sector Networks to shape and inform technical curriculum development;

The Apprenticeship Hub will work with employers to generate opportunities at higher and degree level, promoting vacancies through the UCAS Degree Finder and promote local opportunities that appear through UCAS for degree level apprenticeship vacancies through a local portal; and

Colleges and training providers will set out their individual plans for growth in outcome agreements to inform the devolution of the Adult Education Budget.


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The local skills system is complex and fragmented Consultations with Colleges, training providers, employers and partners in the drafting of the Apprenticeship Growth Plan has underlined the level of local commitment to making apprenticeships work for individuals, businesses and the local economy. Apprenticeships are embedded as a key method of developing the local workforce that underpins growth within the key strategic skills documents for Liverpool City Region. However, the apprenticeship landscape is complex and responsibility for the apprenticeship agenda does not rest with a single organisation. Increasingly local Colleges and training providers will be expected to collaboratively work together to progress reforms and maximise local apprenticeship outcomes and their links to technical education. The Apprenticeship Growth Plan is an enabling document that supports the Skills Investment Statement 2018/19 and the longer term Liverpool City Region Skills Strategy and provides the foundations for the deeper level of collaboration required. The Liverpool City Region Apprenticeship Hub has operated since 2011 and is a prime example of the close collaborative and partnership work that exists within the City Region. The Apprenticeship Hub is not however a formalised entity and has historically been reliant on short-term, outcome-driven funding to operate. Previous grants and funding has supported the Hub to take forward a range of promotional activities, however the lack of sustained resources impedes its ability to be the strategic owner of the vision for Apprenticeships in the City Region and a body that can monitor and check progress against that vision. Historically the National Apprenticeship Service (NAS) local team supported the Hub from a technical perspective and ensured alignment to national campaigns and activities. This has now lessened following a retraction of local activities from NAS. Collaboratively stakeholders including the Combined Authority will seek to ensure that the Apprenticeship Hub is better resourced and enabled to be more strategically focused. The Combined Authority will explore alternative funding sources to enable the Hub to lead aspects of the plan’s delivery and play a monitoring role that will inform, stimulate and drive qualitative and quantitative growth in apprentices across the City Region. The medium term ambition is for the Apprenticeship Hub to align to the structures of the Combined Authority to offer greater stability and cross organisational working with the LEP, Growth Hub and other bodies– however the activities of the Hub will continue to be overseen by a strong and independent Board, with representation from key stakeholders and organisations across the FE sector including employers. A local co-ordinating body is necessary to encourage and promote collaborative efforts to deliver apprenticeships and will inform and prioritise areas for action, helping to ensure the successful delivery of local apprenticeship policy and informing future devolution asks relating to this area of work. The Apprenticeship Hub will ensure a co-ordinated approach to commissioning, aligning the use of funding related to Apprenticeships working to the Combined Authority and Employment and Skills Board. The Apprenticeship Hub and the activities within this growth plan will inform local investment decisions including future ESF investment, and the use of Skills Capital budgets relating to Apprenticeships. The Combined Authority will continue to lobby government for greater influence and flexibilities regarding unspent apprenticeship levy funding including the flexibility to retain apprenticeship levy funding in the locality, to ensure we maximise local investment in apprenticeship delivery infrastructure.


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KEY ACTIONS:

The Combined Authority will champion apprenticeships, launching an Apprenticeship Pledge to gain commitment to apprenticeship growth;

The Combined Authority will explore alternative sources of funding for the Apprenticeship Hub to provide greater stability and allow the Apprenticeship Hub to take the lead on the implementation of the Apprenticeship Growth Plan;

The Combined Authority will seek to align the commissioning of funding streams to drive apprenticeship diversity, breath and growth; and

The Combined Authority will continue to lobby government for increased flexibilities to retain unspent apprenticeship levy funding within the City Region to support apprenticeship growth and investment in local apprenticeship delivery infrastructure.


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5. TAKING ACTION The Combined Authority views the Apprenticeship Growth Plan as a key document that will develop key actions, galvanise and promote collaborative activity by Colleges and training providers and ensure a co-ordinated approach to driving forward apprenticeship delivery with a renewed Apprenticeship Hub. We will utilise this plan to direct investment decisions to maximise the impact of the resources within our control. We will also continue to strive for more funding and investment to come to the Liverpool City Region. PRIORITIES FOR GROWTH The Apprenticeship Growth Plan has through comprehensive consultation identified five themes for action which will address key apprenticeship challenges and tackle key areas of market failure post reforms. The actions build on the strengths and opportunities that exist in the City Region and the actions Colleges, training providers, stakeholders and partners believe are currently contributing to supporting delivery of the programme.

VISION To increase the volume, breadth and relevance of apprenticeships across the Liverpool City Region,

enabling more employers and learners to access and benefit from apprenticeships

Apprenticeship reforms are impacting delivery

Growth Challenges

Too many employers still do not understand or engage with

apprenticeships

16-18 apprenticeship numbers are falling

There is a current misalignment between

employer demand and provider supply

A technical skills gap still exists between LCR compared to

national qualification averages

Action Themes

Priority 1 Developing better LCR

apprenticeship data

Priority 2 Stimulating employer demand

for apprenticeships

Priority 3 Supporting more individuals to

follow apprenticeship skills progression routes

Priority 4 Supporting and extending the

delivery of high-quality apprenticeships

Priority 5 Creating the right environment for apprenticeships to develop

Local skills system is complex & fragmented – opportunity for

greater alignment


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6. CONCLUSION

Our vision for this Apprenticeship Growth Plan is to increase the volume, breadth

and relevance of apprenticeships across the Liverpool City Region enabling more

employers and learners to access and benefit from apprenticeships.

Our aspiration is to deliver: 20,000 apprenticeships per annum by 2020, with

appropriate milestones for growth in annual delivery up until this point

GROWTH PLAN - SUPPORTING AMBITIONS:

To maintain the volume of 16 -18 apprenticeships measured as the proportion of the

annual cohort entering an apprenticeship route.

To expand the breadth and relevance of provision, increasing the range of frameworks

and standards available through local provision.

To support and improve the quality of apprenticeships delivered locally.

To increase the proportion of starts at advanced and higher/degree level apprenticeships

TO DELIVER OUR AMBITION WE WILL:

Champion apprenticeships across the Liverpool City Region

Enhance the availability and use of accurate and timely data

Align the use of locally commissioned funding

Continue to lobby Government as part of devolution discussions to retain unspent levy funds locally

WHAT WE WILL ASK OF OUR PARTNERS:

We need colleges, independent training providers and universities to showcase to employers the advantages of recruiting new apprentices and expand and diversify their delivery of high quality apprenticeships

We are asking employers to help us understand their current and future skills needs and provide apprenticeship opportunities

We will look to the Apprenticeship Hub to extend the network of apprentice and employer ambassadors, ensure consistency of message and the celebration of success

We are asking the LEP to help raise awareness of apprenticeships with employers and support employers to engage with programme delivery and planning


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Organisation Action Matrix

The actions within the Liverpool City Region Growth Plan have been developed following consultation and review with key partners and stakeholders and build on the collective commitment to securing growth. The collaborative approach to action will maximise the plan’s impact; as such all organisations have a key role to play in its implementation.

Organisation Key Activities Plan Reference

Liverpool City Region LEP

Host a series of events for levy-paying employers to raise awareness of apprenticeships and maximise levy spend

Support employers to better articulate their specific technical needs through the Growth Hub and LEP Sectors Boards

2.6 4.3

Colleges, Independent Training Providers & Universities

Monitor apprenticeship capacity and programme delivery on an annual basis

Support employers to better articulate their specific technical needs through Curriculum Networks

Set out their individual plans for growth in the outcome agreements to inform the devolution of the Adult Education Budget – increasing delivery at advanced and higher levels and aligning curriculum to employer need

Work collaboratively to develop progression pathways and enhance the apprenticeship offer available locally

1.3 4.3 4.5 4.6

Combined Authority

Increase its data analysis capacity and develop an apprenticeship Data Dashboard of local

Continue to lobby Government to improve access to relevant and up to date apprenticeship related data from across departments

Champion apprenticeships, launching an apprenticeship pledge as part of a City Region marketing campaign

Work in partnership with NAS to support levy paying employers to understand how apprenticeships could benefit their business

Work with local authorities and other public sector bodies to deliver the 2.3% target

Seek to commission additional wrap-around support for 16-18 year olds at risk of being NEET from ESF and local match funding

Work with partners to establish a centralised approach to apprenticeship Careers Education, Information, Advice and Guidance through the LCR Careers Hub

Develop a LCR Apprenticeship Portal to simplify and enhance access to apprenticeship vacancies

1.1 1.5 2.1 2.3 2.4 3.1 3.2 3.4


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Ask government through devolution discussions for access to unspent apprenticeship levy funding to develop a Traineeship bursary for 16-23 year olds

Seek to utilise ESF to support the development of new apprenticeship standards that support local employer needs for Colleges and providers based in the City Region

Seek to establish a capacity building fund, via ESF, to support providers to move into new sector areas and enhance the breath of provision available

Seek to commission, via ESF, a Quality Improvement Fund, providing a package of support to improve the quality of apprenticeship delivery for locally based Colleges & providers

Explore alternative sources of funding for the Apprenticeship Hub to provide greater stability and allow the Apprenticeship Hub to take the lead on the implementation of the Apprenticeship Growth Plan

Develop a commissioning strategy which supports the drive for apprenticeship diversity, breadth and growth

Continue to lobby government for increased flexibilities to retain unspent apprenticeship levy funding within the City Region to support growth and investment in local apprenticeship delivery and infrastructure

3.6 4.1 4.2 4.4 5.2 5.3 5.5

The LCR Apprenticeship Hub

Undertake a further review of apprenticeship performance data including 2017/18 programme performance to inform post-reform trend analysis

Review the continued relevance and impact of actions within the Growth Plan on a bi-annual basis

Ensure the newly commissioned Skills for Growth Agreements contain intelligence to support apprenticeship planning

Develop a segmented marketing campaign and employer toolkit to raise apprenticeship awareness

Develop a network of Employer Ambassadors to strengthen business to business advocacy of apprenticeships

Continue to extend the LCR Apprentice Ambassador Network to raise awareness of apprenticeships with schools and young people

Establish a multi-agency working group to plan and implement actions to increase participation by learners with learning difficulties and/or disabilities

Continue to promote and celebrate apprenticeships through the publication of case studies and an annual Graduation Ceremony

1.2 1.4 1.6 2.2 2.5 3.3 3.5 3.7


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Deliver a series of Skills Shows – culminating in a large scale event during the International Festival for Business

Work with employers to generate apprenticeships at higher and degree level, promoting opportunities through the UCAS Degree Finder

3.8 4.7


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Priority 1: Developing better data analysis and availability across the City Region to inform programme planning

We will improve the availability and use of relevant apprenticeship data to help develop our collective understanding of apprenticeship delivery and the impact of reform. We will enhance the range of management information available internally & to partners, making data-driven and evidence-based refreshes to the growth plan and actions, helping others to understand how to respond.

Ref Action Impact/Outcome Date

1.1 The Combined Authority will increase its data analysis capacity and develop a Data Dashboard of local apprenticeship outcomes

1.2 The Apprenticeship Hub will undertake a further review of apprenticeship performance data including 2017/18 programme performance to inform post-reform trend analysis

1.3 The GMLPF will be requested to commission an annual survey of members to monitor apprenticeship participation and capacity post reform

1.4 The Apprenticeship Hub will review the continued relevance and impact of actions within the Growth Plan on a bi-annual basis

1.5 The Combined Authority will continue to lobby Government to improve access to relevant and up to date apprenticeship related data from across departments

1.6 The Apprenticeship Hub will ensure the newly commissioned Skills for Growth Agreements contain intelligence to support apprenticeship planning


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Priority 2: Stimulating Employer Demand for Apprenticeships

We will improve employer awareness of apprenticeships, promoting the economic and social return on investment to businesses across the City Region. We will strive to ensure consistency of message during times of change, providing additional brokerage support to maximise the opportunity that co-investment and the apprenticeship levy brings.


2.1 The Metro Mayor and Combined Authority will champion apprenticeships, launching an Apprenticeship Pledge to gain commitment to apprenticeship growth

2.2 The Apprenticeship Hub will develop a segmented marketing campaign and employer toolkit to raise apprenticeship awareness

2.3 The Combined Authority will work in partnership with NAS to support levy paying employers to understand how apprenticeships could benefit their business

2.4 The Combined Authority will work with local authorities and other public sector bodies to meet the 2.3% target

2.5 The Apprenticeship Hub will develop a network of Employer Ambassadors to strengthen business to business advocacy of apprenticeships

2.6 The LEP will host a series of events for levy-paying employers and in partnership with the Hub will support them to maximise the use of their levy fund


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Priority 3: Supporting more individuals to follow apprenticeship skills progression routes

We will encourage more young people to choose apprenticeships through the provision of high-quality information, advice and guidance. We will ensure individuals in the City Region understand how to access opportunities and promote a wide range of apprenticeship vacancies. We will ensure that innovative and engaging pathways are available for those who need them to progress.


3.1 The Combined Authority will seek to commission additional wrap-around support for 16-18 year olds at risk of being NEET from ESF and local match funding

3.2 Partners will establish a centralised approach to apprenticeship Careers Education, Information, Advice and Guidance through the LCR Careers Hub

3.3 The Apprenticeship Hub will continue to extend the LCR Apprentice Ambassador Network to raise awareness of apprenticeships with schools and young people

3.4 The Combined Authority will develop a LCR Apprenticeship Portal to simplify and enhance access to apprenticeship vacancies

3.5 The Apprenticeship Hub will establish a multi-agency working group to plan and implement actions to increase participation by learners with learning difficulties and/or disabilities

3.6 The Combined Authority will ask government through devolution discussions for access to unspent apprenticeship levy funding to develop a Traineeship bursary for 16-23 year olds

3.7 The Apprenticeship Hub will continue to promote and celebrate apprenticeships through the publication of case studies and an annual Graduation Ceremony

3.8 The Apprenticeship Hub will deliver a series of Skills Shows – culminating in large scale event during the International Festival for Business


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Priority 4: Extending the delivery of high-quality apprenticeship opportunities

We will work collectively to diversify the range of apprenticeships available to meet the skills needs of employers, supporting more providers to offer apprenticeships at advanced and higher level. We will help more employers articulate their specific needs and create a better fit between supply and demand for apprenticeships.


4.1 The Combined Authority will seek to commission via ESF support for the development of new apprenticeship standards that support local employer needs for Colleges and providers based in the City Region

4.2 The Combined Authority will seek to commission a capacity building fund to support providers to move into new sector areas and enhance the breath of provision available

4.3 Local Stakeholders will support employers to better articulate their specific technical needs through the Growth Hub, LEP Sectors Boards and Provider Curriculum Networks

4.4 The Combined Authority will seek to commission, via ESF, a Quality Improvement Fund, providing support to improve the quality of apprenticeship delivery for locally based Colleges and providers

4.5 Colleges and training providers will set out their individual plans for growth in outcome agreements to inform the devolution of the Adult Education Budget

4.6 The Apprenticeship Hub will broker relationships between FE and HE providers to help develop progression pathways

4.7 The Apprenticeship Hub will work with employers to generate apprenticeships at higher and degree level, promoting opportunities through the UCAS Degree Finder


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Priority 5: Creating the right environment for apprenticeships to develop

We will develop the local capacity and infrastructure to support the development and growth of apprenticeships. We will simplify the local skills system, creating greater alignment between funding streams and enhance the existing collaboration between organisations.


5.1 The Combined Authority will champion apprenticeships, launching an apprenticeship pledge to gain commitment to apprenticeship growth

5.2 The Combined Authority will explore alternative sources of funding for the Apprenticeship Hub to provide greater stability and allow the Apprenticeship Hub to take the lead on the implementation of the Apprenticeship Growth Plan

5.3 The Combined Authority will develop a commissioning strategy which supports the drive for apprenticeship diversity, breadth and growth

5.4 The Combined Authority, will continue to lobby government for increased flexibilities to retain unspent apprenticeship levy funding within the City Region to support growth and investment in local apprenticeship delivery and infrastructure


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6. TECHNICAL ANNEX

Overall Apprenticeship Starts Liverpool City Region has a strong history of delivering apprenticeships and overall starts have increased year on year since 2013/14. However, growth across the City Region has not kept pace with national programme growth and the proportional of national starts delivered by Liverpool City Region fell steadily between 2013/14 and 2015/15. Provisional data for 2016/17 indicates that the proportion of national delivery has grown back to 2013/14 levels and the City Region has increased its proportional regional delivery. Table 1: Apprenticeship Starts by Local Authority

Source: Statistical First Release, October 2017

Table 2: Liverpool City Region Starts as a Proportion of Regional and National Delivery

Apprenticeship Starts by Age Chart 1: Proportional Starts by Age The age profile of apprenticeship starts across the Liverpool City Region has changed. The proportion of starts aged 25+ has grown in direct contrast to a reduction in the proportion of 16-18 and 19-24 starts. Table 3: Starts by Age (proportional)

Table 4: Apprenticeship Starts by Age

Level Age LEA/LA/Region/England 2013/14 2014/15 2015/16

2016/17

Full Year

(Provisional)

All All Halton 1,420 1,420 1,440 1,430

All All Knowsley 2,010 2,180 2,140 2,160

All All Liverpool 4,600 5,080 5,130 5,310

All All Sefton 2,890 3,100 3,090 3,330

All All St Helens 2,080 2,260 2,390 2,280

All All Wirral 3,530 3,850 4,130 4,070

All All Total LCR 16,530 17,890 18,320 18,580

All All North West 71,670 79,310 80,820 79,170

All All England 434,600 494,200 503,900 485,500

Apprenticeship - Starts

2011/12 2012/13 2013/14 2014/15 2015/16

2016/17

Full Year

(Provisional)

17.3% 16.7% 16.5% 16.0% 16.0% 16.3%

4.6% 4.2% 3.8% 3.6% 3.6% 3.8%

26.6% 25.0% 23.1% 22.6% 22.7% 23.5%

LCR Proportion of National Starts

NW Proportion of National Starts

LCR Proportion of NW Starts

All Age Apprenticeship Starts

Level Age 2013/14 2014/15 2015/16

2016/17

Full Year

(Provisional)

All Under 19 25.1% 23.1% 22.9% 20.1%

All 19-24 33.4% 29.6% 27.7% 26.8%

All 25+ 41.5% 47.3% 49.4% 53.2%


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16-18 Apprenticeship Starts The volume of apprenticeship starts aged 16-18 remained steady between 2013/14 and 2015/16. However provisional data for 2016/17 shows a steep decline with 16-18 apprenticeship starts dropping by 460 equating to a 10.95% reduction compared to 2.93% in the North West and 7.85% nationally. Table 5: 16-18 Apprenticeship Starts by Local Authority


Whilst declining numbers of 16-18 year olds a reduction in 16-18 starts may have been expected, when considering starts as a proportion of the cohort we have seen a reduction in penetration of 0.7%. In addition, the proportion of national 16-18 starts delivered by the Liverpool City Region has declined year on year. Table 6: 16-18 Apprenticeship Starts as a Proportion of the 16-18 Cohort

Source: Statistical First Release, October 2017; ONS Annual Population Survey, NOMIS

Apprenticeship Starts by Level


2016/17

Full Year

(Provisional)

All Under 19 LCR Total 4,160 4,130 4,200 3,730

All 19-24 LCR Total 5,530 5,300 5,070 4,970

All 25+ LCR Total 6,870 8,460 9,050 9,870

All All LCR Total 16,560 17,890 18,320 18,570


Level Age Geography LEA/LA/Region/England 2013/14 2014/15 2015/16

2016/17

Full Year

(Provisional)

All Under 19 LEA/LA Halton 360 320 340 320

All Under 19 LEA/LA Knowsley 540 590 520 480

All Under 19 LEA/LA Liverpool 1,190 1,170 1,140 1,010

All Under 19 LEA/LA Sefton 740 690 740 670

All Under 19 LEA/LA St Helens 520 530 560 460

All Under 19 LEA/LA Wirral 810 830 900 790

All Under 19 LEA/LA Total LCR 4,160 4,130 4,200 3,730

All Under 19 Region North West 19,710 20,030 20,650 19,310

All Under 19 National England 118,200 124,300 129,800 119,700


2013/14 2014/15 2015/16 2016/17

LCR 16-18 Cohort 54,350 53,070 52,100 50,260

LCR 16-18 Apprenticeship Starts 4,160 4,130 4,200 3,730

LCR Cohort Penetration 7.7% 7.8% 8.1% 7.4%

LCR Proportion of National Starts 3.5% 3.3% 3.2% 3.1%


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There has been a shift in delivery away from Level 2 programmes to advanced and higher level apprenticeships in line with government and local ambitions. The proportion of overall starts that are Level 2 reduced to 51.3% in 2016/17 from 55.2% in 2015/16, continuing the trend from 2014/15. Charts 2 & 3: Comparison of Apprenticeship Starts by Level

The trend for increasing apprenticeships at Level 4+ continues with a 33.06% increase in starts in the City Region, albeit from a moderately low baseline. Table 7: Apprenticeship Starts by Level


Apprenticeship Starts by Sector In 2015/16 59.1% of all apprenticeship starts fell into the two sector subject areas of Business Administration and Law and Health, Public Services and Care. In 2016/17 this increased to 61.6%. In addition:

Construction had fewer apprenticeship starts in 2016/17 than in 2015/16 across the City Region and whilst this follows the regional and national trend it is of concern;

Locally Engineering has higher apprenticeship starts in 2016/17 than in the previous year, which is in contrast to regional and national changes.

The largest volume increase has been in Business Administration and Law, which includes the delivery of leadership and management apprenticeships. There are some concerns nationally that there has been a significant increase in the delivery of management apprenticeships potentially indicating that levy-paying employers are using their apprenticeship funds to support existing employees to undertake management qualifications. This will be tested out once data is available to allow analysis at framework level.


2016/17

Full Year

(Provisional)

Intermediate All LCR Total 10,400 10,210 10,140 9,530

Advanced All LCR Total 5,730 6,830 6,990 7,450

Higher All LCR Total 400 870 1,190 1,620



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Table 8: 2 year comparison of starts by sector subject area

Apprenticeship Achievement Rates Overall apprenticeship achievement rates are based on the individual apprenticeship frameworks that were completed in the relevant year. They are calculated as the number of framework aims achieved divided by the number started. The tables below are based on learner residency and not location of the delivery provider. Table 9: Apprenticeship Overall Achievement Rates by Learner LEP 2015/16

Source: Apprenticeship Overall Headline Achievement Rate Tables 2015/16, June 2017

All age-all level achievement rates for the Liverpool City Region are close to the national

average, however there are areas of clear underperformance, particular in relation to 16-18

years olds and at those residents studying at Level 4+.

Table 10: Apprenticeship Overall Achievement Rates by Learner Local Authority 2015/16

Source: Apprenticeship Overall Headline Achievement Rate Tables 2015/16, June 2017

Liverpool City Region AGE Evaluation

2015/16

15/16

Proportion

of total

2016/17

Full Year

(Provisional)

16/17

proportion

of total

Variance%

VarianceVariance

%

VarianceVariance

%

Variance

Agriculture, Horticulture and Animal

Care 210 1.1% 200 1.1% -10 -5 70 8 -930 -12

Arts, Media and Publishing 30 0.2% 0 0.0% -30 -100 -50 -33 -440 -35

Business, Administration and Law 5,760 31.4% 6,210 33.4% 450 8 -830 -3 -5,840 -4

Construction, Planning and the Built

Environment 790 4.3% 640 3.4% -150 -19 -410 -11 -500 -2

Education and Training 300 1.6% 410 2.2% 110 37 200 13 440 5

Engineering and Manufacturing

Technologies 2,370 12.9% 2,440 13.1% 70 3 -600 -5 -4,580 -6

Health, Public Services and Care 5,080 27.7% 5,240 28.2% 160 3 1,880 9 5,610 4

Information and Communication

Technology 430 2.3% 370 2.0% -60 -14 -110 -6 -960 -6

Leisure, Travel and Tourism 550 3.0% 470 2.5% -80 -15 -460 -18 -1,100 -8

Retail and Commercial Enterprise2,780 15.2% 2,600 14.0% -180 -6 -1,270 -10 -10,030 -12

Science and Mathematics 40 0.2% 10 0.1% -30 -75 -60 -46 120 32

Total 18,340 100.0% 18,590 100.0% 250 -1,640 -18,210

Subject Sector Area

Liverpool City Region North West England

Local Authority Institution Type Age LCR Nat Av LCR Nat Av LCR Nat Av LCR Nat Av

Liverpool City Region All Institution Type 16-18 68.3 69.3 66.7 67.8 73.0 72.9 26.1 53.3

Liverpool City Region All Institution Type 19-23 67.7 68.0 66.3 66.5 70.8 70.9 32.0 54.5

Liverpool City Region All Institution Type 24+ 64.9 65.0 66.7 65.6 64.4 64.7 49.7 59.8

Liverpool City Region All Institution Type All Age 66.5 67.0 66.6 66.5 67.9 68.5 46.2 58.3

All Levels Level 2 Level 3 Level 4+

Local Authority Institution Type Age LA Nat Av LA Nat Av LA Nat Av LA Nat Av

Halton All Institution Type All 66.4 67.0 66.5 66.5 68.2 68.5 34.5 58.3

Knowsley All Institution Type All 66.8 67.0 65.9 66.5 68.8 68.5 54.1 58.3

Liverpool All Institution Type All 64.6 67.0 65.0 66.5 65.6 68.5 40.2 58.3

Sefton All Institution Type All 68.5 67.0 67.6 66.5 70.4 68.5 59.0 58.3

St. Helens All Institution Type All 68.4 67.0 69.4 66.5 69.3 68.5 38.3 58.3

Wirral All Institution Type All 66.3 67.0 66.6 66.5 67.2 68.5 47.8 58.3

All Levels Level 2 Level 3 Level 4+


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In 2015 responsibility for the Apprenticeship Grant for Employers (AGE) was devolved to

the City Region as part of the LCR Devolution Agreement. The national AGE grant was for

16-24 apprentices only and paid £1500 for employers with fewer than 50 employees, who

were new to apprenticeships or hadn’t enrolled an apprentice in the previous 12 months.

The City Region took the opportunity to make an enhance payment to employers within the

City Region of £3,000 on the condition that the apprentice was paid the national minimum

wage rather than the lower Apprenticeship Minimum Wage.

An evaluation of the LCR AGE Grant demonstrated the influence of a grant on the

employers’ decision to recruit a young apprentice with 84.2% of employers stating it was

very or quite important. At the time of the survey 96.4% of apprentices were still working

within the organisation either as an apprentice or full-time employee. [graphs?]

Demographics

Liverpool City Region has not enjoyed the level of population growth of other cities, which highlights a concern that future labour supply may constrain future growth ambitions. Liverpool City Region’s working age population grew by 12,600 (or by 1.3 per cent) between 2006 and 2016, to reach 972,400 in 2016. This rate of growth was significantly below the England average growth rate of 5.3 per cent. Charts 4 & 5: Population changes (all age) in Liverpool City Region compared to elsewhere

The future projections of population see reductions in the City Region’s population when there is projected growth elsewhere. This will lead to a reduction in the number of people available for work, which could make it harder for employers to recruit the skills and capacity they require. 16-18 Cohort Decline There is a particular issue with the number of 16-19 year olds, which will see further decline in future years. This reduction is likely to have a long-term impact on the working age population, the labour market and the FE sector. This decline in 16-18 numbers is more significant in Liverpool City Region compared to the North West (and England). 16-19 numbers in Liverpool City Region do not return to 2014 levels until 2028, 4 years later than the North West and five later than England. The percentage reduction from 2014 to 2020 in the City Region is also steeper, compared to elsewhere.


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Chart 6: Projected population changes for ages 16-19

Source: ONS 2014 based projections, NOMIS

The LCR Labour Market More than 1.5million people live within Liverpool City Region, of which 972,400 are of working age (16-64 years). Currently there are 598,000 jobs and over 71,000 self-employed people. Since 2010 approximately 46,000 private sector jobs have been created. Currently the City Region has a stock of 49,125 business units, 99% of whom are SMEs. Liverpool City Region has experienced significant recent jobs growth, at a rate similar to the North West region lower than the national average. Between 2000 and 2015, jobs in Liverpool City Region grew by 64,000 - or by 10.4 per cent, compared to 15.2 per cent for England as a whole. Over the past five years, total workforce jobs have increased by 43,000 or 6.8 per cent, close to the national rate of growth of 7.7 per cent. Jobs and sectors The types of jobs undertaken in Liverpool City Region have become more highly skilled over the past 10 years. Highly skilled jobs (Level 4 occupations: managers & senior officials, and professional occupations) as a share of total employment has increased from 22.5 per cent in 2007 to 28.5 per cent in 2017. This is a greater increase than that recorded nationally, although LCR is just below the England average (31.4 per cent). Overall, Liverpool City Region is more reliant on public services for employment – with 22.5 per cent (134,700) of all employee jobs, compared to 17.2 per cent nationally. Liverpool City Region’s largest employer is the health and social work sector. Employment in Liverpool City Region is highest in Human health and social work, accounting for 18.2 per cent (108,900) of all employees in 2015. This is far more significant than the national average, where jobs in this sector account for 12.8 per cent of the total. LCR economic forecasts suggest a range of industries will have strong jobs growth. Significant future forecast job growth of +22,200 jobs over the next decade (2015-2025), particularly in the sectors of:

10.4%

LCR job

growth

2000 - 15


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Table 11: Breakdown of Liverpool City Region Job Growth by Industrial Classification OVERALL FORECAST JOB GROWTH +22,200

Administrative and support service industries (+7,100)

Professional, Scientific and technical activities (+6,400)

Construction (+4,800) Wholesale and retail (+3,600) Information and Communication (+1,900)

Source: Cambridge Econometrics projections for Liverpool City Region LEP

There are significant levels of retirement forecast across many occupational categories, which will require replacing. This ‘replacement demand’ is frequently much large than net employment growth and can contribute up to 90 per cent of total demand for labour. Population Skills Levels There is a higher proportion of Liverpool City Region residents who do not have a formal qualification when compared to the national average. The latest data suggests that this gap to national averages is widening. The Liverpool City Region Area Based Review identifies a need to widen access to entry routes to learners with low level skills and re-engage learners to progress into further learning or work whilst supporting employers’ needs to ensure labour demand meets supply. This includes confidence in mathematics, written and spoken English, digital and employability skills. Chart 7: 16-64 Population with no qualifications in Liverpool City Region and elsewhere

Advanced and Technical Skill Levels in Liverpool City Region (Level 3 and above)

Attainment of Level 3 (NVQ Level 3 or two or more A levels equivalent) by age 19 is much lower in Liverpool City Region than national rates. The impact of lower Level 2 attainment through school and the need to repeat English and Maths qualifications impacts on when Liverpool City Region residents progress to Level 3 Technical Qualifications either through academic routes such as A Levels or vocational qualifications delivered in FE Colleges, independent training providers and in work. Chart 8: Proportion of 16-64 population with Level 3 qualifications in LCR and elsewhere


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The opportunities for students to develop the technical skills that employers need are is lost whilst students ‘catch up’ on English and maths and Level 2 qualifications, meaning that young people would need to stay in full time education for longer to make up for this and then progress to Level 3. The Post 16 Skills Plan details plans for Technical Education that will require the local FE sector to be responsive to delivering. The Government’s plans for Institutes of Technology are a key opportunity to ensure those with Level 3 technical skills can progress. The Liverpool City Region Area Based Review recommends Colleges and providers including HEIs collaborate to develop a prospectus of advanced and higher level technical skills to support employer and learner choice and to inform gaps in provision. Higher Skill Levels in Liverpool City Region (Level 4 and above) The latest available HEFCE local data details that regionally 32% of north-west young people progress to HE, whilst across the UK the figure is 32.6%. In Liverpool City Region progression to HE is variable with Knowsley, Halton and Liverpool less than the national average (all below 28%) of young residents in HE. In St Helens the figure is 31%, whilst Sefton and Wirral exceeds the national average with 35% of young resident’s progressing Specific Mental Health Needs of Individuals There is consistent anecdotal feedback from services providers that the nature of the issues faced has changed in recent years, and that residents accessing support tend to have more and more complex barriers that prevent them from working and engaging with apprenticeships: this includes those with a mental health condition. The data on this is difficult to obtain in a measurable way but the following indicators give a sense of this.


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Table 12: Statement of key mental health indicators for Liverpool City Region and England

Indicator Year Liverpool City

Region England

Estimated prevalence of depression amongst population (GP Practice returns)

2015/16 9.73% 8.26%

Antidepressant prescribing: average daily quantities

2016/17 2.0 1.4

Long term mental health problems amongst population (GP Patient Survey)

2016/17 7.28% 5.70%

Depression and anxiety prevalence amongst population (GP Patient Survey)

2016/17 18.38% 13.74%

Source: PHE Fingertips – Mental Health Disorders (October 2017)

This would appear to suggest that Liverpool City Region has a higher incidence of residents with a range of mental health conditions than nationally. The combination of long term mental health problems and depression and anxiety prevalence is around 1 in 4 of the population, confirming the qualitative feedback received from front line services. Skills Needs Reported by Employers Employers have reported that the vast majority of applicants are ready for work (83%, higher than the national average), but there are specific sectors which have lower levels of satisfaction. In particular, employers within Health and Care and the Visitor Economy report this to be an issue. The general employability support offered by employment and independent training providers can therefore be seen as effective and having an impact, but this could be improved by better targeting on a specific sectoral basis. The City Region also has a number of specific technical skills gaps, with 48% of employers in the recent survey reporting this to be an issue. This is most acute in IT (where 85% of employers report this as an issue), manufacturing (68%) and construction (63%). In addition, employers reported a need for leadership and management skills to be improved: this is supported by the feedback from the Skills for Growth Service. Workplace training is commonplace across the City Region, with 84% of respondents offering training. However, 47% of businesses report no budget for training and 32% access public funding for training provision. Those employers who do use external provision have high levels of satisfaction with them, particularly with private training providers and Universities. Training is still seen as costly and time-consuming by some businesses.


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APPENDIX ONE Organisations Consulted

The Liverpool City Region Apprenticeship Hub Board Members

The Liverpool City Region Apprenticeship Hub Strand Working Groups

The Liverpool City Region Skills for Growth Employer Brokerage Team

The Greater Merseyside Learning Provider Federation – Board Members & network

representatives

The Merseyside College Association

The City of Liverpool College

Hugh Baird College

Myerscough College

Riverside College

Southport College

St Helens & Knowsley College Group

Wirral Metropolitan College

The Federation of Small Businesses

The Liverpool City Region Local Enterprise Partnership

The Liverpool City Region Local Authorities’ 14-19 Participation and Skills Strategy

Group

[further consultation will be undertaken in January including additional employer groups and HEIs]

Documents

Apprenticeship Growth Plan 2018 - 2020 Version 0 · Liverpool City Region Apprenticeship Growth Plan 2018 - 2020 Page 7 A plan to drive Apprenticeships This Apprenticeship Growth