Developing the Young Workforce Scotland's Youth Employment Strategy 2nd Annual Report 2015/2016

Chapter 3: Apprenticeships

Overview

This Government is committed to ensuring that more employers and more young people can benefit from work based learning including apprenticeships. We are therefore continuing to grow, widen and enhance Modern, Foundation and Graduate Level Apprenticeship in the coming year.

Employers are increasingly recognising the benefits that MA's bring to their workplaces. Employer response has meant that we provided 25,518 new MA starts in 2015/16 - exceeding our interim target of 25,500 as the first step towards our 30,000 target.

Through the establishment of the new industry led Scottish Apprenticeship Advisory Board, a significant number of senior industry representatives from a range of sectors across the Scottish economy are providing direct industry leadership in driving forward the on-going improvement and expansion of our apprenticeship offer in Scotland.

Apprenticeships need to work for employers and their leadership is vital to collectively shaping how the programme better meets their needs as well as providing invaluable employment opportunities for our young people. And we have made it simpler for young people, their parents and employers to find out about apprenticeship opportunities through a dedicated website from SDS www.apprenticeships.scot. For the first time the site allows young people to search for live apprenticeship vacancies and employers to upload vacancies for free.

We are also making progress in pathways into Modern Apprenticeships for young people while they are still at school through our expansion of Foundation Apprenticeships. By increasing the range of Foundation Apprenticeships available - aligned to future industry demand and career prospects - we are providing more opportunities to a greater number of pupils; supporting parity of esteem between work based and academic learning and bringing industry and education closer together.

As of AY 2016/17, there are more than 480 young people participating in Foundation Apprenticeships. Expansion of frameworks across years is as follows:

• Business Skills - available from 2016
• Civil Engineering - from 2015
• Engineering - from 2014
• Financial Services - 2015
• IT Hardware Systems Support - from 2016
• IT Software Development - from 2016
• Social Services and Healthcare - from 2015
• Social Services: Children and Young People - from 2015

Two new frameworks, Creative and Digital Media and Laboratory Skills, will be available for delivery in AY 2017/18.

The introduction of a small number of new Graduate Level Apprenticeships this year is providing a new approach to developing graduate level skills, allowing employers to grow their own graduate level talent while the employee can apply what they are learning to their specific job role. SDS is continuing to work on the development of Graduate Level Apprenticeships in collaboration with employers, universities and colleges. SDS, with partners, has:

• Established the principles for Graduate Level Apprenticeships at SCQF levels 8, 10 and 11
• Completed two Graduate Level Apprenticeship frameworks ( IT Software Development (level 10) and IT Management for Business (level 10)), is nearing completion of a further two frameworks (Civil Engineering (level 8) and Engineering Design and Manufacturing (level 10)) and has started work on a further four (Business Management and Financial Services (level 10), Engineering Instrumentation Measurement and Control (level 10), IT Cyber Security (level 10) and Civil Engineering/ Construction (level 10)).
• Tendered for the delivery of Graduate Level Apprenticeships beginning from January 2017.

We are working to ensure that apprenticeship opportunities are open to all having published the Equalities Action Plan for Modern Apprenticeships; SDS is working with partners to take forward the measures set out in the plan. A wide range of activities have been delivered including: supporting our regional pipeline approach; engaging employers and industry in recruiting and assisting MAs to succeed in the workplace; campaigns and wider promotional activity focused on under-represented groups; supporting training providers through continuing professional development and information resources; reviewing and improving self-reporting procedures; and enhancing our contracting and funding processes. An annual report on the action plan will be published early in the New Year.

Over the summer we consulted on a Scottish response to the introduction of the UK Apprenticeship Levy with a commitment to developing a distinctly Scottish approach to apprenticeships and wider skills development and to drive closer engagement with industry in our efforts to enhance productivity and economic growth. There were over 400 responses to the consultation with broad employer support for the ambitions within it. The analysis from the consultation responses was published in November with the findings being used to finalise the response in Scotland.

Bullets of key deliverables

• Exceeded the target to deliver 25,500 MA starts in 2015/16 providing 25,818 opportunities during this year.
• We have increased the number of MA opportunities from 25,500 in 2015/16 to 26,000 in 2016/17 as the next step toward increasing the number of MA opportunities to 30,000 a year by 2020/21.
• www.apprenticeships.scot provides information for young people; employers and parents on the apprenticeship opportunities available in Scotland.
• Employers can advertise live apprenticeship vacancies which young people can apply for directly from the website.
• Foundation Apprenticeships were launched in AY 2014/15, with 2 pathfinders in Engineering in 2 local authorities and involving 2 colleges, expanding in AY 2015/16 to 5 frameworks across 20 local authorities and involving 15 colleges. As of AY 2016/17, there are more than 480 young people participating in Foundation Apprenticeships. Delivery covers 8 frameworks across 25 local authorities and involves 18 colleges. Two new frameworks will be available for delivery in AY 2017/18.
• From the early pathfinders, of the 66 pupils who completed a Foundation Apprenticeships in Engineering and Financial Services, 21 went into employment including a Modern Apprenticeship, 20 progressed into further education at college, 10 went on to HE at university, 13 participants still had the opportunity to complete their 6th year studies and returned to school to further their qualifications and two were undecided.
• Established the Scottish Apprenticeship Advisory Board ( SAAB) to provide industry leadership into our plans to grow, widen and enhance the apprenticeship offer in Scotland.
• We have revised the MA contribution rates to provide young disabled people and those with experience of care with the highest level of Modern Apprenticeship funding for their chosen MA Framework up to the age of 29.
• Progressed the development of Graduate Level Apprenticeships - principles, frameworks, delivery.
• Consulted on the Scottish Government's proposed response to the introduction of the UK Apprenticeship Levy from April 2017.
• Published the analysis of consultation responses and initial actions that will be taken in Scotland.

Progress So Far

Delivery Year 2 - Academic Year 2015-2016
Milestone Over-view	Progress	Detailed update
Publication of MA equalities action plan;	Completed	SDS published its MA Equalities action plan on 2 December 2015 setting out the long term approach for improving participation in the MA programme. SDS will report on this plan annually with the first annual report due early in 2017.
Foundation Apprenticeship pathfinders undertaken in additional local authorities.	Completed	Foundation Apprenticeships were launched in AY 2014/15, with 2 pathfinders in Engineering in 2 local authorities and involving 2 colleges, expanding in AY 2015/16 to 5 frameworks across 20 local authorities and involving 15 colleges. As of AY 2016/17, there are more than 480 young people participating in Foundation Apprenticeships. Delivery covers 8 frameworks across 25 local authorities and involves 18 colleges. Two new frameworks will be available for delivery in AY 2017/18.
First stage of expansion of the MA programme;	Competed	Interim target for 2015/16 was to deliver 25,500 starts. Total delivered in the year was 25,818. The target for 2016/17 is to delivery 26,000 starts.
Ongoing design of Graduate Level Apprenticeship model;	Completed	The principles for Graduate Level Apprenticeships ( GLAs) have been agreed with partners. GLAs will be available at SCQF levels 8 ( HND), 10 (Honours degree) and 11 (Masters Degree), with flexible entry and exit points to allow individuals to learn at the level that suits them. The majority of learning will take place in the workplace, supplemented by time spent in a university or college during a work week. This means that if an individual participates in a GLA they are able to access the same learning opportunities as those who go down the more traditional route of direct entry into college or university. A cohort of employees of Highlands-based construction companies enrolled on a GLA in Civil Engineering ( SCQF level 8) in AY 2015/16. These are being delivered by Inverness College UHI, in partnership with SDS, the Construction Industry Technology Board ( CITB) and supporting employers. Additional frameworks have been developed in partnership with employers, industry bodies, and universities. SDS has: Established the principles for Graduate Level Apprenticeships at SCQF levels 8, 10 and 11. Completed two Graduate Level Apprenticeship frameworks ( IT Software Development (level 10) and IT Management for Business (level 10)), is nearing completion of a further two frameworks (Civil Engineering (level 8) and Engineering Design and Manufacturing (level 10)) and has started work on a further four (Business Management and Financial Services (level 10), Engineering Instrumentation Measurement and Control (level 10), IT Cyber Security (level 10) and Civil Engineering/ Construction (level 10)). Tendered for the delivery of Graduate Level Apprenticeships beginning from January 2017 with the aim of delivering 125 Graduate Level Apprenticeships.
Model and funding profile for MA expansion programme developed;	Completed	This has been developed and will inform future Spending Review decisions.
Terms for the Modern Apprentice Advisory Board established;	Completed	These were agreed by Scottish Ministers in 2016.
MA Advisory Board meets for the first time with an initial focus on evaluating current MA processes and advising on where expansion activity is best focussed;	Completed	The Scottish Apprenticeship Advisory Board ( SAAB) was established and held its first meeting in April 2016.
MA Group reviewed to ensure model for developing MA frameworks remain fit for purpose;	On-going	The initial review has taken place. The finding and options for changes will be considered by the SAAB Standards and Frameworks Groups before being agreed by Ministers. The review has been aligned with parallel activity to transfer the activity on Universal Services (National Occupational Standards, SVQs, and MA Frameworks) previously undertaken by the UKCES, to SDS on behalf of Scottish, Welsh and Northern Irish Governments following the decision by the UK Government to stop funding NOS and the UKCES.
Early assessment of engineering Foundation Apprenticeship pathfinder activity;	Completed	In summer 2016, 66 pupils completed Foundation Apprenticeship's in Engineering and Financial Services. Early indications show that 21 went into employment including a Modern Apprenticeship, 20 progressed into further education at college, 10 went on to higher education at university, 13 participants still had the opportunity to complete their 6th year studies and returned to school to further their qualifications and two were undecided. A review of the early Foundation Apprenticeship pathfinders delivered during 2014-16 was completed in 2016 to capture insight and learning is being shared with stakeholders and delivery partners to inform future development and delivery. The learning has highlighted the benefits of Foundation Apprenticeship's to the work-based learning agenda and also included suggestions from delivery partners and participants on ways in which delivery could be further improved. Following discussion with stakeholders and employers, SDS has developed a draft pre-Foundation Apprenticeship framework in Engineering. This aims to provide young people with the necessary knowledge skills and capability to make a success of the Engineering Foundation Apprenticeship. SDS is currently working to establish the need for similar frameworks in other sectors.
Education Scotland quality assurance of MA commences;	Completed	Report on Engineering Frameworks Review published in November 2015 http://www.educationscotland.gov.uk/inspectionandreview/reports/othersectors/modernapprenticeship/engineering.asp The report on Hairdressing Frameworks Review was published in November 2016 http://www.educationscotland.gov.uk/inspectionandreview/reports/othersectors/modernapprenticeship/hairdressing.asp
Easier access to MA vacancies available through My World of Work.	Completed	www.apprenticeships.scot launched which includes access to a number of live MA vacancies with the ability to apply directly from the website.

Key themes and milestones for apprenticeships

Achieving our ambitions for the young workforce requires a focus on the following themes in relation to apprenticeships:

• Expansion of MA opportunities to 30,000 by 2020/21.
• Development of Foundation Apprenticeships in schools.
• Development of Graduate Level Apprenticeships.
• Focus on STEM MAs and development of higher level apprenticeships.
• Scottish Apprenticeship Advisory Board ( SAAB) established, supporting greater responsiveness to labour market need meaning MAs are better aligned with job opportunities.
• Clearer pathways into apprenticeships for those not in work or those from previously under-represented groups.

The milestones set out below detail what this will involve over the lifetime of the programme.

During 2016 - 2017, we will see:

• Review of the early Foundation Apprenticeship pathfinders completed to capture insight and learning;
• Ongoing development of Graduate Level Apprenticeships;
• Work with employers and other stakeholders to ensure that the introduction of the UK wide apprenticeship levy supports our ambitions to develop the MA pathway;

Ongoing implementation of Equalities Action Plan for Modern Apprenticeships to increase participation by under-represented groups.

During 2017 - 2018, we will see:

• Pupils will have the opportunity to take part in a Foundation Apprenticeships in every Scottish Local Authority area and new frameworks will be developed in Laboratory Skills and Creative Digital Media.
• Further expansion and evaluation of the Graduate Level Apprenticeships pathfinder undertaken and evidence used to inform future expansion.
• Strengthened employer leadership in apprenticeships through the work of the Scottish Apprenticeship Advisory Board ( SAAB).
• Exploration of alignment of MA Frameworks and underpinning standards with other Devolved Administrations.

On-going implementation of Equalities Action Plan for Modern Apprenticeships to increase participation by under-represented groups.

During 2018 - 2019, we will see:

• Improved planning of MA's with opportunities more closely aligned with key areas of growth;

Pilot activity on Foundation and Graduate Level Apprenticeships and equalities being rolled out across the country.

During 2019 - 2020, we will see:

Achievement of MA volume target and diversity targets.

During 2020 - 2021, we will see:

• At least 30,000 new MA starts each year;
• Activity fully embedded and expansion sustained.

Education Working for All! Recommendations

This activity delivers recommendations 7, 8, 9, 10, 13, 20, 30, 31, 32, 34, 35, and 38.