Challenge to cut red tape will make apprenticeships a better deal for business

NEEDLESS BUREAUCRACY SCRAPPED

Red tape will be slashed to make it easier for employers to take on more apprentices, Skills Secretary John Denham announced today.

He announced that unnecessary bureaucracy such as demands to store paperwork for up to six years, multiple inspection visits and monthly reporting requirements will be ditched at the earliest possible opportunity.

Mr Denham became concerned that bureaucracy is deterring some companies - including small and medium-sized enterprises - from taking on apprentices after discussions with business. His 'bureaucracy-busting' challenge has been laid down to the organisations charged with delivering the Government's apprenticeships programme, including the Learning and Skills Council, the Qualifications and Curriculum Authority, awarding bodies and his own Department. The challenge has been welcomed by leading employers. Tesco aims to double the number of apprenticeship places once changes, including the following, are in place:

- Excess paperwork will be removed through use of electronic audit and storage, tackling employers' concerns about keeping paper records for up to six years;

- Registration and certification processes will be simplified, including faster confirmation that apprentices have successfully completed their programmes. Employers will no longer have to wait several months for a paper certificate to arrive;

- Payment systems will be streamlined, for example by enabling payments to be made in two lump sums rather than on a monthly basis if employer requests this;

- Monthly reporting requirements will be scrapped;

- Inspection and review visits will be reduced, tackling employers' concerns that they can face several different review and inspection processes that are not co-ordinated and don't share evidence between them; and

- Health and Safety requirements for apprentices will be based more closely on businesses' existing in-house systems.

Mr Denham said:

"Employers tell us that if we are to meet our ambitious aims to expand the number of apprenticeships, we need to cut the red tape around the programme. "There is no reason why firms should have to deal with multiple copies of time-consuming paperwork, provide the same information to several different agencies, be expected to invoice government more often than is necessary, or have to undergo complex inspection requirements when they already have perfectly adequate systems of their own.

"The practical measures we have agreed will enable more employers to meet their present and future skills needs, unimpeded by time-consuming administration. The challenge from some of Britain's leading employers, based on their own actions to get rid of red tape and bureaucracy is the perfect base on which we will build."

Employers have urged swift action to streamline the current system. The bureaucracy-busting plan will be published over the summer and will map out a timetable for implementation while seeking further input from employers and awarding bodies.

David Potts, Retail Director of Tesco plc said:

"We are very encouraged by the drive from John Denham and welcome the proposals for cutting red tape around apprenticeship programmes. This will strengthen our commitment and help us achieve our aim of doubling the number of apprenticeship places we offer this year.

"At Tesco we know the apprenticeship programme brings great benefits, not only through the new skills our colleagues gain but also for how it helps them to develop their careers with us."

Andy Ferguson, CEO, Dollond & Aitchinson said:

"We applaud the efforts from government and John Denham's drive to minimise the bureaucracy that employers face around apprenticeships. As a national optician, working in local communities up and down the country, we see both the tangible business benefits of investing in training and the positive impact on the lives of our employees and their families.

"Less red tape benefits everyone and enables more of our colleagues to access work based learning and apprenticeships."

The apprenticeships programme is a vital component of the Government's drive to improve the nation's skills. Over the past decade the Government has more than doubled the number of young people and adults starting apprenticeships, and anticipates that one in five young people will take an apprenticeship by 2020.

Notes to Editors:

1. Attendees at a 'bureaucracy busting' meeting with the Secretary of State, held at DIUS on 23rd July 2008, included Ann Bell, HR Director, Tesco; Prof Andrew Ramroop, Managing Director, Maurice Sedwell Ltd; Frank McMahon, Managing Director, YH Training Services; Ian Pryce, Principal and Chief Executive, Bedford College; Christine Tyler, Chair, Further Education Bureaucracy Reduction Group; Hilary Chadwick, Director, National Employer Service, Learning and Skills Council; Sue Georgious, QCA; as well as representatives of leading awarding bodies involved with the apprenticeships programme.

2. Employers working with the NES and other agencies on streamlining and reducing in bureaucracy include: Sainsburys, Dollond & Aitchinson, Barchester Healthcare, Kwikfit and TUI.

3. Funding for apprenticeships will increase by almost a quarter between 2007/08 and 2010/11, to over £1 billion. Funding will be available specifically for expanding apprenticeships for those aged 25 or over.

4. Apprenticeship completion rates have reached an all time high of 63% compared to 24% in 2001/02. Over the 10 year period from 2001/02 to the end of the CSR period in 2010/11 more than 900,000 young people and adults will have successfully completed their apprenticeship. Apprenticeship starts have increased from 65,000 in 1996/97 to over 180,000 in 2006/07. They are projected to grow to almost 210,000 by 2010/11.

5. In January, John Denham set out how a new National Apprenticeship Service will deliver an expanded apprenticeship programme and will provide a single point of contact for employers who want to offer apprenticeships. We want to go further in simplifying the process for employers.

6. In July 2008 the Apprenticeships Bill set out measures to ensure apprenticeships are of a uniform high quality and have the confidence of apprentices and employers. The Bill, which for the first time will establish a statutory basis for the apprenticeships programme, will ensure schools provide advice about apprenticeships so that young people are properly informed about apprenticeships as a career choice.

7. A London Apprenticeships Taskforce comprising businesses, local government representatives, education and training providers was announced in July 2008. The taskforce will encourage more employers, particularly SMEs and public sector bodies in London to take on an apprentice.