Chancellor Jeremy Hunt announces plans for £50m year “apprenticeship growth sector pilot”

Chancellor Jeremy Hunt has announced plans to launch a two-year “apprenticeship growth sector pilot” in a bid to increase the numbers of apprenticeships in engineering and other key growth areas. The aim pilot will be to discover new opportunities for growth within the sector, whilst also addressing the barriers that make it difficult to enter. This includes training entry, funding issues and required industry standards.

No details have been revealed regarding how the project will be launched or run but will most likely take heed of the needs of training providers, learners and employers. The idea is that through working in collaboration with businesses to improve apprenticeship systems, needs across the UK will be met. It is hoped this pilot will catapult growth in multiple sectors, including the growth of engineering apprenticeships across the board.

As part of the project, the minimum hourly wage for apprentices will rise by 21% from April 2024. This will increase the hourly pay rate from £5.28 to £6.40. These increases will no doubt be welcomed across the country, both by individuals seeking to pursue engineering as a career and by further education institutions who have suffered a decline in apprenticeship funding.

FE colleges across the UK have welcomed the initiative, hoping the pilot project will stimulate the growth of sector-related apprenticeships. At present many colleges have been hit hard by the significant decline in student numbers due to the recent pandemic-related lockdowns. By utilising the £50 million pilot project funds, FE colleges can start to offer a higher standard of apprenticeships without the concerns over costs.

However, concerns remain regarding potential levy restrictions. There have been discussions surrounding the potential restrictions of levy funding for degree-level apprenticeships, which many fear will limit the potential for future growth within the sector. Groups have appealed to the chancellor to abandon the proposal, and discussions are currently ongoing with the Department for Education. A government spokesman stated they would continue to work with the skills sector to create an effective apprenticeship system that is necessary for both learners and employers.

As this unfolds we look forward to learning more about how the plans will develop and what solutions the engineering and other key sectors will have access to. We will continue updating you on the progress of this pilot, follow us to stay up to date!