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Councils call for extension of incentives for apprentice
creation as furlough scheme ends.
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LGA survey finds that councils and combined authorities
have created 55,000 apprenticeship starts in the last four
years and invested more than £200 million into apprenticeships
in their community.
Financial incentives in place to help employers create
apprenticeship programmes should be extended to continue beyond
the end of the furlough scheme, councils say today.
The current scheme provides employers, including local
authorities, with an additional £3,000 to take on an apprentice
and is due to end at the end of September, the same date as the
end of the Government’s furlough scheme. Councils have received
at least £4.1 million in incentives since they were introduced in
August 2020.
The Local Government Association is calling on government
to extend the duration of the incentives until at least 31 March
2022 to enable employers to use of them as part of local economic
recovery plans and to ensure that no opportunities to create
apprenticeships are lost.
The LGA, which represents councils in England and Wales, is
concerned that without an extension to the apprenticeship
incentives beyond 30 September, opportunities to get our
residents into high quality apprenticeships will be lost just at
the time that an increase in unemployment is possible as the
furlough scheme comes to an end.
An exclusive LGA survey of councils reveals that:
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Local authorities have so far invested more than £200m to
create over 55,000 apprenticeship starts in 150 different
qualifications over the last four years.
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The survey also revealed that 43 per cent of councils
found an increase in interest in apprentices from maintained
schools as a result of the incentive scheme. Schools have
struggled to make effective use of the apprenticeship levy and
local authorities are concerned that this increase in activity
driven by the incentives may not be sustainable if they are
withdrawn as planned next month.
Cllr Sir Richard Leese, Chair of the LGA’s City Regions
Board said:
“Councils and combined authorities have done a magnificent
job driving employment and apprenticeship opportunities within
their local communities, continuing this hard work throughout the
pandemic.
“It is clear that as the furlough scheme is phased out,
there is the real possibility of a rise in the number of people
out of work or training. To ensure people can get access to
apprenticeships when they are needed the most, it is vitally
important that the incentive scheme is extended.
“This scheme has already helped businesses and local
authorities create tens of thousands of life changing
apprenticeship opportunities to people in their local
communities. By extending the scheme, councils can work with
local employers and the Government to ensure that the country
builds back better from the pandemic.
“Knowing their communities best, councils are uniquely
placed to bring all partners together to create greater
opportunities for those who are unemployed and help achieve our
shared ambition with government to level up across the
country.”
