Weekly Newsletter 9.1.2025

Plus: Budget cuts jeopardise 6,000 apprenticeship starts in Wales

HAPPY NEW YEAR! 🎉

Welcome to HRD: Apprenticeship Training, your weekly newsletter offering the latest on apprenticeship trends, policy updates, and the innovations shaping the education sector. As we kick off 2025, let’s seize new opportunities to drive positive change and make this year one of progress and impact in the apprenticeship training space!

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EDUCATION HONOURS

The 2025 New Year Honours reveal significant recognition in the field of further education and skills, celebrating distinguished contributions to the sector. The list comprises a diverse array of honourees, including academics, college leaders, and governors. Notably, Professor Alison Fuller, lauded for her extensive work in vocational education and apprenticeships, receives a damehood. Her contributions to government advisory roles underscore the evolving landscape of higher education. Additionally, other key figures like Geoff Barton and Fazal Dad are honoured with CBEs for their steadfast commitment to educational advancement, further accentuating the positive strides being made in this essential field.

This year's honours reflect an overarching theme of dedication to further education, with numerous awardees being recognised for their efforts in moulding educational pathways and outcomes. Such accolades demonstrate the sector's importance and the vital role it plays in shaping future generations. Each honouree's work highlights the educational community's continued efforts in fostering opportunities, underlining the honours’ role in spotlighting exemplary leadership and service. As these individuals advance educational opportunities, the accolades serve as a catalyst for continued motivation and enhancement within the sector.

FURTHER EDUCATION

The recent £300 million funding boost for further education in the UK is, on paper, a positive development. Yet, as the Institute for Fiscal Studies (IFS) explains, this increase may not suffice against the backdrop of rising student numbers and inflation pressures. Although this move is intended to stabilise funding per student, the real-terms spending freeze suggests actual funding per student might fall by 4 per cent. Additional funding of £200 million annually is projected to be necessary by 2027 to sustain real-term spending levels, underscoring the critical need for substantial, long-term financial strategies.

Furthermore, the increasing student population and persistent pay disparities between college and school teachers exacerbate existing challenges for colleges. While average college teacher pay is expected to lag significantly behind that of their school counterparts by 2025, creating a high turnover rate exacerbates operational hurdles. It's clear that further education is pivotal to meeting the UK's economic ambitions, including constructing new homes and boosting NHS efficiency. However, without enhanced and sustainable funding, colleges face significant limitations in delivering on these aspirations."

REGIONAL UPKSILLING

The West Midlands Combined Authority (WMCA) has successfully helped over 43,000 individuals access crucial job training opportunities. This milestone comes as Mayor Richard Parker underscores the importance of upskilling the region to meet future workforce demands.

Through targeted initiatives and partnerships, the WMCA has been instrumental in bridging the skills gap, particularly in sectors like construction, digital technology, and healthcare. With a focus on equipping residents with the tools they need to thrive in the job market, the authority is driving economic growth and fostering local talent.

As the region continues to prioritize training and education, the Mayor’s office remains committed to creating a robust pipeline of skilled workers, supporting both individuals and businesses in achieving long-term success.

APPRENTICESHIP REFORMS

The introduction of the new Growth and Skills Levy marks a pivotal moment for the UK's apprenticeship system, aiming to redirect funding towards younger individuals and entry-level training. Tom Richmond, a former government adviser, challenges the criticism surrounding the reduction in funding for Level 7 apprenticeships, equivalent to a Master's degree. His analysis suggests that these shifts are not only justified but necessary, ensuring that taxpayer money is directed to those who most benefit from it.

Richmond's research identifies that a significant portion of apprenticeship funding has been funnelled to university graduates, detracting from the intended youth and entry-level focus. Key findings reveal that one-sixth of apprenticeships are now occupied by graduates, costing the system £431 million last year. His recommendations propose barring individuals already qualified at Level 6 or higher from accessing levy-funded apprenticeships and segregating management training from the apprenticeship system. By doing so, it encourages employers to co-fund non-apprenticeship training, promoting better value for money and genuine skill development.

APPRENTICESHIP FUNDING

The National Training Federation for Wales (NTFW) has expressed disappointment at the Welsh Government’s draft budget, which notably sidesteps additional investment in apprenticeships, despite increases in other educational areas. The NTFW underscores the vital role apprenticeships play in crafting a skilled and inclusive workforce and is committed to working with the government to seek further investment. The cut in the apprenticeship budget by 14% last year has already diminished these programmes' capacity, with a report by the Centre for Economics and Business Research anticipating nearly 6,000 fewer apprenticeship starts in 2025, resulting in a £50.3 million short-term economic loss.

The reduction is particularly detrimental to the health and social care sectors, and efforts are ongoing to ensure that apprenticeship programmes continue to provide significant benefits. The NTFW is focused on encouraging the Welsh Government to align its budgetary decisions with the economic and social goals that apprenticeships help achieve. Increased funding, the NTFW argues, could bolster growth, address skill shortages, and support economic recovery through enhanced social mobility and inclusion across Wales.

HRD: Digital Apprenticeships is a Contentive publication in the Education division