The UK is facing a skills gap crisis that is worsening year on year. Apprenticeships is one of the significant ways this issue can be addressed but it can be daunting for tradespeople and small business owners to take on the responsibility. So here’s our guide on where to start and why it’s ultimately worth the investment…
Make no mistake, we’re deep into a skills gap crisis that has long needed urgent action. A retiring workforce, a turbulent economy and the disruption of Brexit and the Covid-19 pandemic have all played a part in creating a dire situation.
There is unending online business advice that states the importance of recognising the warning signs that your enterprise might be failing. “Don’t ignore the red flags,” we’re told. And any savvy tradesperson would surely agree. Why, then, has the UK found itself facing a trade skills crisis, despite all the signals?
According to government figures, the number of people starting an intermediate apprenticeship has fallen by 47% in England since 2018. Additionally, another government study in 2023 (latest figures) revealed more than a third (36%) of all vacancies in 2022 were skill-shortage vacancies, compared to 22% in 2017.
As the damning trend continues, we have to ask ourselves: who are the tradespeople of tomorrow? What routes are available for people to find a trade and enter the industry? And what is the impact of the problem if not solved?
Cause and effect
Let’s start with how this will affect the trade sector if the problem continues to be ignored. For starters, we will surely begin to see reduced productivity and efficiency – a lack of skilled workers can lead to less work getting done as tasks take longer to complete and may require rework due to mistakes made by less experienced personnel.
MEET
THE
EMPLOYER
Paul Miles, Ace Electrical & Plumbing
Q: What are the benefits of employing an apprentice?
A: Apprentices are much more eager to take on new methods of working – the exact way to do things. More experienced employees have their own skills and know-how, but sometimes struggle to follow new procedures or take on new ideas. Apprentices can be moulded to be precisely what the business needs.
Q: Why is it important to future proof your business in this way?
A: It’s a great way to see people develop. I have children who have been through apprenticeship programmes in completely different sectors to my own and it’s great to see them have a clear direction and purpose. I will always have an apprenticeship because I like to offer people the opportunity and see their hard work rewarded.
Q: What advice would you offer a fellow trade business owner looking to take on an apprentice?
A: You have to be patient and be prepared for skills to develop over time, but an apprentice is well worth the investment. Yes, there’s the obvious benefits of having a ‘runner’ to do jobs like sweeping up and taking the rubble sacks to the van, but once those core skills have been learned, they will never be forgotten and the apprentice becomes a real asset.
Secondly, the shortage of apprentices can drive up labour costs as businesses compete to attract and retain the few available skilled professionals. This can also lead to higher project costs and further delays.
With these negative effects in mind, investment in training and development becomes crucial but, conversely, also creates understandable cause for concern for tradespeople who worry that it could be a strain on resources. A tradesperson running a small business needs to allocate time to develop apprentices and engage with the training initiatives, which, although beneficial in the long run, can be challenging in the short term.
Lastly, a lack of apprentices coming through also stifles innovation and the adoption of new technology and methodologies.
In truth, new ways of working are a real factor to consider, as Paul Miles from Essex-based Ace Electrical and Plumbing explains: “Apprentices are normally open to doing things differently, so they’re more likely to complete a task exactly as requested. More established employees can be stuck in the past and only work in the same way they’ve always worked – this can creates problems.”
It’s clear that the lack of new talent jumping on the tools is a critical issue needing to be solved – one that doesn’t just rest at the feet of small business owners – but there is plenty of information and support out there to help those tradespeople interested in being part of the solution.
Apprenticeship Levy
The UK’s Apprenticeship Levy is a policy designed to fund new apprenticeships. Introduced in April 2017, it requires large employers to invest a percentage of their payroll into apprenticeships. So, how does this benefit tradespeople and small business owners? Let’s dig into the details.
Any employer with an annual pay bill over £3m must pay the Apprenticeship Levy. This is charged at 0.5% of the annual pay bill and employers receive an annual allowance of £15,000 to offset against their levy payment.
The money from the levy is used to create a specific apprenticeship fund that all businesses can access. Funds are paid into a digital apprenticeship service account and employers (tradespeople) can use these funds to pay for apprenticeship training and assessment.
Access to the fund as a ‘non-levy paying employer’ is via co-investment, where the government contributes 95% of the training costs and you the employer cover the remaining 5%. So, tradespeople benefit from financial support by only having to cover this small percentage of the training costs.
Benefits
There are many other benefits to tradespeople, too. Apprenticeships provide a cost-effective way for small businesses to develop a skilled workforce tailored to their specific needs. They can help fill the skills gap and enhance productivity by training new employees in areas directly relevant to their business.
Apprenticeships can lead to higher employee retention and loyalty. An apprentice who has been trained within the business will often feel more valued and appreciative for the opportunity.
MEET
THE
APPRENTICE
Alfie Scanlon, Ace Electrical & Plumbing
Q: What made you decide to do an apprenticeship?
A: I have family who are in the trade and have always enjoyed working with them and learning how to improve in each sector. So, I thought doing an apprenticeship full-time would be the best way to grow and develop my skills.
Q: What support have you received from the business?
A: I have received a lot of support while learning with Ace Electrical and Plumbing. So far, I’ve learned how to use tools in a safe and efficient way and how the business runs. The biggest lesson I’ve learned is how we like to successfully finish each project with the highest amount of care, while also respecting the customer’s home and personal space.
Q: What have you learned about the trade and the KBB sector?
A: I have learned that anything can happen in this trade — good or bad — so you need to make sure you are always looking to the people you work with to check everything is going as smooth as possible and all projects are complete to the highest standard. This means the customer has nothing but good things to say about their finished project, and this reflects well on everyone in the business.
Furthermore, in today’s digital age and the prominence of customer reviews online, it has never been more important for tradespeople to create a positive public image. Supporting apprenticeships can enhance a small business’ reputation, showing a commitment to investing in the future workforce and community.
And while the Apprenticeship Levy primarily targets large employers, it also provides advantages for small businesses through financial support, quality training opportunities, and the development of a skilled and loyal workforce.
Fitted furniture installation
Managed by the British Institute of KBB Installation (BiKBBI), the Fitted Furniture Installer apprenticeship is a programme specific to the sector and the apprenticeship ‘standard’ itself is the first of its kind.
The programme has been designed for installers who are responsible for preparing and installing furniture including kitchens, bedrooms, bathrooms, public spaces, and boat interiors.
Running alongside the apprenticeship, there is additional support available from BiKBBI and The Apprenticeship Partner – a specialist in apprenticeship management with the aim to support employers in understanding the benefits of apprenticeships. Essentially, the partnership offers help for tradespeople to implement an effective apprenticeship programme.
The two organisations have created BiKBBI Futures, which comprises three services for apprenticeships. The ‘Guided’ service is free and offers a step-by-step guide with directions for employers interested in managing the recruitment and onboarding processes independently. Then there is the ‘Supported’ and ‘Managed’ services which, as the names suggest, offer an increased level of support and guidance.
In addition, the Construction Industry Training Board (CITB) also provides funding for various apprenticeships within the construction sector.
Apprenticeships FAQs
What is an apprenticeship?
An apprenticeship is an on-the-job training programme that develops an employees’ key skills needed to perform their job role. The flexible training programme that a training provider delivers may involve one-to-one discussions, practical demonstrations, assignment work, on the job assessments, online learning, and formal, taught sessions and workshops.
What are the benefits of hiring an apprentice?
Hiring apprentices not only helps in building a skilled and loyal workforce tailored to your business’ specific needs, but also brings financial benefits and fresh perspectives.
How long does an apprenticeship last for?
Apprenticeships take one to five years to complete depending on their level. For example, the Fitted Furniture Installer apprenticeship that is specific to the kitchen, bedroom and bathroom market, typically takes between 18 and 24 months to complete.
Do apprentices need time off to study?
As most of the training is on-the-job, time off to study is rarely required. As the employer, you will be responsible for supporting your apprentice, paying their wages, and helping them in achieving the apprenticeship qualification and meeting the required standards. The training supplier will be able to offer further advice.
What will it cost?
Alongside salary, the cost of training varies depending on the level and duration. Each apprenticeship has a funding band, which is the maximum cost of the training. The government pays at least 95% of the funding band, so employers only need to pay a maximum of 5% of the total cost.
How do I get started?
There’s a few things you need to know before embarking on the apprenticeship journey, however, there is plenty of support to help you. A good place to start is the ‘Education and Learning’ section of the .gov.uk website. Organisations like the British Institute of KBB Installation (BiKBBI) and The Apprentice Partner offer a wealth of information and support services for business owners looking to employ an apprentice.
For more information:
- BiKBBI
- The Apprentice Partner
- Construction Industry Training Board (CITB)