Labour’s skills plan could cut apprenticeships in half, warns report

YOUNG Brits could face a major setback as Labour's new skills plan threatens to slash apprenticeships in half, a new report warns.

Damning research shows Sir Keir Starmer's proposal to reform the apprenticeship levy to fund other types of training could inadvertently lead to a loss of 170,000 apprentice opportunities.

Regions like the South East and North East could be hit the hardest, with the latter potentially seeing fewer than 10,000 opportunities for apprentices.

But the situation looks even grimmer young Brits under 19, who might find only 39,000 apprenticeship positions available - in stark contrast to the number of university places.

Education Secretary Gillian Keegan blasted Labour's "ill-thought-through" policy, saying: "We have rebuilt our apprenticeship system from the ground up since 2010, delivering over 5.8 million starts and expanding apprenticeships to nearly 70 per cent of all occupations in the country.

“This report by Onward exposes how Labour's ill-thought-through policy would slash the number of apprenticeships in half - damaging opportunities for people across England."

Labour plans to transform the apprenticeship levy into a "growth and skills levy", allowing firms to use up to 50 per cent of their contributions on non-apprenticeship training, such as digital and customer service skills.

But the think tank argues firms would likely use the full flexibility to fund other types of training for existing staff.

Policy Fellow at Onward Jess Lister added: "Apprenticeships are effective and popular as a route to training and employment, particularly for young people.

"Given that there is already insufficient supply to meet demand, pursuing a policy to reduce, rather than increase, the number of apprenticeships available is a high-risk strategy."

The Onward report argues that rather than overhauling the existing apprenticeship levy, a tweak to encourage more businesses to participate would be more beneficial.

It suggests lowering the threshold for contributions, fully funding apprenticeships for the 16-18 age group separately, and expanding the flexibility of apprentices to work across multiple businesses.

Shadow Education Secretary Bridget Phillipson said: “This is utter nonsense from an Education Secretary and a Conservative Government which has overseen a gigantic fall in apprenticeships on its watch – their failed apprenticeships levy is making things worse.

“Apprenticeships are key to providing opportunity for young people and skills for our country, which is why they're crucial to delivering Labour’s mission of national renewal.

“Labour has set out clear plans for reforming the levy into a Growth and Skills Levy so employers have the flexibility they need to train-up their workforces and create new opportunities for young people, giving our economy and communities the boost we need.”