Agenda item
Apprenticeships: East London Business Alliance (ELBA)
- Meeting of Overview & Scrutiny Committee, Monday, 26th November, 2018 6.30 p.m. (Item 3.2)
- View the background to item 3.2
The Committee will receive a presentation on the uptake around apprenticeships; employment outcomes; future plans and what has worked well or areas that could be improved.
Minutes:
The Committee received a presentation from the East London Business Alliance (ELBA) on the uptake around apprenticeships; employment outcomes; future plans and what has worked well or areas that could be improved. The discussions on the presentation are outlined below:
The Committee noted that:
· ELBA works in close harmony in with the Tower Hamlets Education Business Partnership (THEBP) and supports social mobility with a focus upon class; race and worklessness;
· Whilst worklessness has fallen earnings have not risen for a high percentage of residents in the Borough not earning the London minimum wage resulting in ‘in work poverty’.
· With many residents in low paid work means that whilst there is record numbers of people in employment, too many jobs are low skilled and low paid. Many workers therefore become trapped in low pay with little chance of social mobility;
· Although many Tower Hamlets graduates find employment and many go on to successful careers, ethnic minority graduates are much less likely to be employed than their white peers after graduation and there are also marked disparities in wages between many ethnic minority women and men who do manage to find jobs after graduation and their white counterparts;
· English language skills can act as a barrier to employment, or to being accepted onto apprenticeship programmes. Therefore ELBA looks at the competencies required to overcome such barriers;
· Employers' in Tower Hamlets have expressed the view said that the Government have failed to act on mounting concerns about changes to the apprenticeship system. With local business owners still struggling to comprehend how the system is supposed to work;
· Whilst there has been a 26% fall in take up, the new levy was introduced to maximise the opportunities for apprenticeship for both the learner and employer;
· The new levy should (i) provide an opportunity to recruit from a wider talent pool and build a more diverse workforce and (ii) appeal to young people who excel academically whilst also opens the door to those who thrive in a practical environment;
· The degree versus apprenticeship debate is long-running and families choosing the children’s next educational move proper consideration. Higher education also continues to be a popular option despite the rise in tuition fees, with an all-time high of 241,585 18-year-olds across the UK accepted onto degree courses in 2017. Although attitudes to apprenticeships have also evolved and they are now recognised as an equal alternative to university without the associated loans that have to be taken out to pay for educational expenses. As the rapidly rising college tuition costs have made student debt the only option to pay for college for many students, which also put those students from lower income households at a distinct disadvantage;
· In light of Brexit there will be tougher competition for well-qualified talent, development of existing staff, and the increasing difficulty in recruiting senior and skilled employees. Organisations must therefore remain alert to the potential changes and be agile in their responses to be able to continue attracting and retaining people with the appropriate skillsets and potential for their needs especially for the lower paid jobs; and
· Work is being done to address the development of (i) the “Soft Skills” needed by job seekers; and (ii) the “Hard Skills” needed Science, Technology, Engineering and Mathematics (STEM) jobs.
In conclusion, the Chair thanked Ian Parkes for his presentation and the work of the East London Business Alliance in addressing the needs of London’s communities and how they help their corporate partners innovate, collaborate and think differently about how they give back.