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HomeServe boss says apprenticeship pledge does not go far enough

The chief executive of Walsall-based home repairs and improvements business HomeServe, says the Government must tackle the impending youth unemployment crisis by committing to increased investment into apprenticeship skills.

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Richard Harpin

Richard Harpin has welcomed the decision to increase financial support for apprentices aged 16 to 18-years-old from £1,000 to £3,000, with incremental incentives for other age groups, but he says the move still does not go far enough to make taking on a young trainee an affordable option for the vast majority of small firms operating in the trade sector.

He said a figure closer to £7,000 could tip the balance delivering a dramatic boost to the apprenticeship system and allowing the UK to bridge the growing skills gap and create much-needed youth employment.

That is backed-up by research from HomeServe-owned Checkatrade, the largest online platform for skilled tradespeople, which found cost to be the biggest barrier to taking on a trainee.

"We wholeheartedly support the Government’s ambition of an apprenticeship guarantee for every young person coupled with the increased financial support announced yesterday. But our research suggests what’s currently on the table is unlikely to have the impact the Government is hoping to see.

"Our Checkatrade members are small businesses themselves. They have told us cost is the biggest single disincentive to taking on and nurturing an apprentice.

"Without meaningful investment in future skills now, I fear the Government is in danger of missing a golden opportunity to impact the lives of talented young people into the future.”

According to recent statistics, a third of all 18 to 24-year-olds have lost jobs or been furloughed during the Covid-19 crisis. With the furlough scheme coming to an end, there is a fear this age group is on course to be the hardest hit.

Meanwhile, the number of young people embarking apprenticeships has fallen by more than 20 per cent since 2015 to below 400,000. The numbers are still going down but according to Checkatrade research, demand for skills like plumbing and construction is going up.

Later this year, HomeServe is launching a not-for-profit foundation to encourage and make it easier for employers in the sector to take on and train more apprentices to a high standard.

The HomeServe Foundation will also campaign for more investment and a reduction in the complex paperwork that surrounds the scheme.

Helen Booth, chief executive of the HomeServe Foundation, said: “The pandemic coupled with Brexit, means the stakes are higher than ever before. Young people need the opportunities that apprenticeships can bring, and as we gear up for life outside of the European Union, the UK must build the skills we have got used to attracting from other countries.

“We plan to do whatever it takes to encourage and support employers and their apprentices as we build the skills for the future.”

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