Redirect unused apprenticeship funds to support colleges, education leaders urge

The Association of Colleges (AoC) said investing in post-16 education now will help young people develop skills to find jobs when the economy picks up again.

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Recent figures from the Office for National Statistics show that the number of 16 to 24-year-olds in employment dropped 174,000 over the last quarter to a record low of 3.52 million.

Latest figures from the AoC show that around 20,000 unfunded students are studying in colleges this year, while, nearly two-thirds (62 per cent) of colleges have seen an increase in 16- to 18-year-olds enrolling. 

This year’s increase in college funding for 16- to 18-year-olds stands at around £225m, however this has been absorbed by the additional costs of Covid-19 including buying PPE, cleaning, technology, transport and extra staffing, the AoC states.

Meanwhile, apprenticeship starts have fallen by 60 per cent compared with 2019 with the drop for 16- to 18-year-olds standing at 79 per cent. 

“With many workplaces shut or unable to take on apprentices, the reduced numbers are likely to remain in 2021 and 2022," the AoC said. 

“Meanwhile, young people have enrolled in their thousands in colleges as a safe haven and a positive place to develop skills which will help them in the labour market in the future. Colleges have adapted their study programmes to meet this new need, but they are not funded for additional learners because of the lagged learner number approach." 

The association believes the unspent money in the apprentice training budget should immediately be transferred to colleges to reflect the rise in learners enrolling. 

David Hughes, chief executive of the AoC, said: “Sadly, many young people have not been able to secure the apprenticeship they want, so have turned to their local college to provide the training and education they know will help them when the jobs market picks up. 

“Unfortunately, though, the funding system which works well in a stable world, is not designed for such big in-year growth. In many cases it means that colleges are supporting hundreds of unfunded learners at a time when Covid has already increased their costs and put pressure on their budgets. 

“At no extra cost to the Treasury, a redirection of unusable apprenticeship funds to colleges could help these young people pave a way to a promising future. We want this to be for the next two years, giving time for the labour market to pick up again and businesses to recover from the downturn. By which point thousands of young people will be work-ready and have the skills employers will need to get back on their feet.”