ECA and FSA Members voice concern over Wales apprenticeship cuts
Over 60 employers from across Wales including several ECA and FSA Members have joined together to call for funding for the Welsh Government flagship apprenticeship programme to be protected, to ensure the economic prosperity of Wales.
In the open letter (also quoted below) employers say that cuts to the apprenticeship programme announced by Welsh Government on 19 December 2023 will have a devastating effect on apprentices, employers, and communities, signalling very challenging times ahead for the FE and work-based learning sectors. It could mean 10,000 fewer apprentices able to start next year, with the reductions falling disproportionately on young people, and those in the lowest socio-economic groups.
"Deep cuts to apprenticeship programme will undermine new economic mission and cut talent pipeline for employers. As business leaders and employers from across Wales representing businesses and organisations of all sizes, we are concerned by the prospect of significant cuts to Wales’s flagship apprenticeship programme by the Welsh Government next year, reducing opportunities for thousands of young people across Wales and risk prospects for new business growth and investment. The cliff edge funding cut due to the decision to reverse a commitment to provide £18m transition funding from the loss of European funding coupled with the in-year budget cut of £17.5m announced in October 2023 means that we are facing a reduction of up to circa. 10,000 new apprentices across Wales in the contract value next year, a possible reduction of up to 50% new starts. Whilst we recognise the highly challenging funding outlook that the Welsh Government faces, this level of cut will have a major impact on skills development, business activity and growth. Continuing to deliver a fully funded skills programme is essential to ensuring that Wales keeps pace with the needs of a modern economy and demonstrates that Wales is open for business. Apprenticeships provide a workforce with the skills required to secure Wales’s place as a globally competitive business location. We have a strong and proud track record in delivering high quality apprenticeship opportunities in Wales over recent years, the proposed circa. 24.5% cut to the contract value next year will not only undermine this success, but it will also set back investment in skills and our professional skilled workforce by several years and severely impact business activity and opportunities for growth. A well-developed and highly skilled workforce must be central to any plans for growing our economy. It is imperative, therefore that there is sufficient resource available, which not only meets that need, but supports the ambition of businesses and the aspirations and opportunities of the employees within them. The Welsh Government’s own evaluation of apprenticeships in 2021 underscored the critical role of the programme in fostering economic growth and its positive impact in terms of “raising the skills levels of people who have low or no skills and increasing the number of people in the workforce who possess job- specific skills. The evidence highlights the significant impact on apprentices’ income, with an impact equivalent to an increase of £7,866 in earnings in the first year after completing their apprenticeship alone. The demand for apprenticeships remains strong, from learners and employers, and we urge Welsh Government to reconsider and provide the necessary transition funding from European funds to benefit learners, skills development, productivity, and business growth." "Employers who have joined together to call for funding to be protected for Welsh Government flagship apprenticeship programme, to ensure the economic prosperity of Wales." |
The letter, dated January 17 is signed by 65 companies with ECA and FSA Member signatories including:
- Powerlink Electrical Services Ltd.
- Lloyd Morris Electrical Ltd.
- Crimewatch Alarms Ltd.
- Chil UK Ltd.
- CMB Electrical Ltd.
- FP Hurley
- Fire Rite UK
Reacting to the Welsh Government’s draft budget, Colegau Cymru Chief Executive, David Hagendyk, said,
“As Wales navigates turbulent economic times, colleges are the skills engine needed to drive our economic recovery, and it is critical that future inward investment is not damaged. The draft budget is a huge gamble for Wales’ economy and communities. The Welsh Government must think again and reverse the catastrophic decision to cut the apprenticeship programme.”
Further education colleges are fundamental to a fairer, greener and stronger Wales, but they need sustainable funding to be able to support learners and to deliver for employers. The combination of the cuts to the apprenticeship budget and reductions in funding elsewhere mean there is a perfect storm facing the sector as a result of the proposals in the draft budget.
ECA offer expert, legally compliant, advice and guidance on a wide range of skills and employment issues to its Members. This includes a free employment law helpline and email service, a wide range of guidance documents, templates, and webinars. Learn more about the benefits of ECA membership here.
--ECA
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