Government funding cuts and constrained public spending have seen increasing pressure on charities, social enterprises and other not for profit organisations who are looking for more innovative ways to maximise funding streams while reducing their overall spend.
INTRODUCTION
Apprenticeships can be a cost effective way to deal with both current and future workforce issues and enable employers to ensure that they have the right (up-to-date) skills and qualifications to progress their organisations, including filling skills gaps and becoming more competitive. Apprenticeships are often more cost efficient for employers than hiring skilled staff as both the training, recruitment and wage costs tend to be lower.
The most recent UK Voluntary Sector Workforce Almanac indicated that only 5% of voluntary organisations currently had or offered apprenticeships. The research recognised that future work would be needed to inform the voluntary sector about the potential funding opportunities available for apprenticeships, as well as the relevant frameworks.
However, the demand for apprenticeships is increasing and it is anticipated that the introduction of three advanced apprenticeships specifically developed for use by voluntary sector employers will increase the take-up of apprenticeships in this sector.
VOLUNTARY SECTOR APPRENTICESHIP FRAMEWORKS
The advanced apprenticeships, in fundraising, volunteer management and campaigning, were developed by Skills-Third Sector (an independent charity which supports the development of apprenticeships in the voluntary sector) in collaboration with over 60 organisations. The apprenticeships are designed for charities and social enterprises and specifically aim to meet the needs of charitable organisations and fill specific skills gaps in the voluntary sector.
Skills-Third Sector works in conjunction with Fair Train, the group training association for the voluntary sector, which encourages voluntary sector employers to offer apprenticeships by helping them to access and manage training for apprentices. Fair Train also co-ordinates the training element of the qualification and supports employers through the apprenticeship process.
FUNDING
There are a number of governmental schemes aimed at improving the attractiveness of apprenticeships to employers. These offer support in implementing and funding the training costs (although not typically the wage costs) of apprenticeships.
A national minimum wage (NMW) for apprentices was introduced on 1 October 2010. The NMW applies to all apprentices aged under 19, and those aged 19 or over during the first year of their apprenticeship. The rate, effective from 1 October 2013, is currently £2.68 per hour. Apprentices over the age of 19 who have completed one year of their apprenticeship are entitled to receive the NMW applicable to their age. These rates apply to time working, plus time spent training that is part of the apprenticeship, although depending on the apprentice's existing qualifications and age, organisations do not typically have to pay the training costs which are paid direct to the relevant training provider out of the government's apprenticeship budget.
It is recognised that funding streams in the voluntary sector are typically short-term. Apprenticeships usually last for a period of between 12-24 months, although it is anticipated that voluntary sector apprenticeships will take on average 18 months to complete. Fair Train is currently appealing to private companies to help fund a bursary scheme that will subsidise smaller voluntary organisations through the first year of meeting apprenticeship costs.
Skills-Third Sector estimates that the cost to an organisation of taking on an apprentice, who has to be paid the NMW, will be around £5,000 for a 16-year-old and slightly more for those aged over 18.
The government has indicated its firm commitment to apprenticeships and to its traineeship programme, both of which represent opportunities for voluntary organisations. For more information on apprenticeships and traineeships, please see our recent briefings You're Hired – An Employer's Guide to Apprenticeships1 and Traineeships – A New Addition to the Apprenticeship Family2.
Footnotes
1 www.bdb-law.co.uk/media/481367/0413_yourehiredapprenticeships.pdf
2 www.bdb-law.co.uk/media/498670/13-05%20traineeships.pdf
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