More than 60 companies and business organisations have called on the Welsh Government to reverse its draft Budget plans that would see a significant cut to its flagship apprenticeship programme.
With inflation creating a real terms cut to its block grant, the Welsh Government is set to implement a reduction in funding of around 24% in the programme for the 2024-25 financial year.
As a result the training sector is forecasting 10,000 less new apprentice starts. To put this into context the latest available figures show there were around 20,000 new apprentice starts in 2021.
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The reduction comes following a by a decision by the Cardiff Bay administration to reverse a commitment to provide transition funding for the loss of EU funding
The sector said the fall in apprentices would disproportionately hit young people (16-24), and women, as in 2021/22 56% of apprentices were female. Improving skills is at the heart of the Welsh Government’s economic strategy.
In an open letter, organised by umbrella bodies for colleges, ColegauCymru, and for the training sector, National Training Federation Wales, the signatories say that apprenticeships need be protected to “ensure the prosperity of Wales.”
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Its 65 signatories (full list below) include ACCA Cymru/Wales, Chambers Wales, CMB Electrical, Dow Silicones, Mrs Bucket Cleaning, PHS Group, the Port of Milford Haven and Wales & West Utilities.
The letter says: “As business leaders and employers from across Wales representing businesses and organisations of all sizes, we are concerned by the prospect of significant cuts to Wales’s flagship apprenticeship programme by the Welsh Government next year, reducing opportunities for thousands of young people across Wales and risk prospects for new business growth and investment.
“The cliff edge funding cut due to the decision to reverse a commitment to provide £18m transition funding from the loss of European funding coupled with the in-year budget cut of £17.5m announced in October 2023 means that we are facing a reduction of up to circa. 10,000 new apprentices across Wales in the contract value next year, a possible reduction of up to 50% new starts.
“Whilst we recognise the highly challenging funding outlook that the Welsh Government faces, this level of cut will have a major impact on skills development, business activity and growth.”
The letter says that a funded skills programme is essential to ensuring that Wales keeps pace with the needs of a modern economy and demonstrates that Wales is open for business.
It adds: “Apprenticeships provide a workforce with the skills required to secure Wales’s place as a globally competitive business location.
"We have a strong and proud track record in delivering high quality apprenticeship opportunities in Wales over recent years, the proposed circa. 24.5% cut to the contract value next year will not only undermine this success, but it will also set back investment in skills and our professional skilled workforce by several years and severely impact business activity and opportunities for growth.
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"A well-developed and highly skilled workforce must be central to any plans for growing our economy. It is imperative, therefore that there is sufficient resource available, which not only meets that need, but supports the ambition of businesses and the aspirations and opportunities of the employees within them.”
Chief executive of ColegauCymru, David Hagendyk, said: “As Wales navigates turbulent economic times, colleges are the skills engine needed to drive our economic recovery, and it is critical that future inward investment is not damaged. The draft budget is a huge gamble for Wales’ economy and communities. The Welsh Government must think again and reverse the catastrophic decision to cut the apprenticeship programme.”
All the signatories
1. ASG Electrical Installations Ltd
2. Abergavenny Electrical Ltd
3. ACCA Cymru/Wales
4. Action Air Conditioning
5. Adra Tai Cyf
6. Alfaplas Group Sphere
7. Amber Energy Solutions Ltd
8. Arc Plant & Civils Training
9. B W Autos
10. Bluestone Builders Ltd
11. Bulwark Bus and Coach Engineering Ltd
12. Cass Hayward LLP
13. CatSci Ltd
14. Chambers Wales
15. Chil 海角视频 Ltd
16. CMB Electrical Ltd
17. Coppice Alupack Ltd
18. Creative Difference Training
19. Crimewatch Alarms Ltd
20. D. Hughes Industrial Roller Doors Ltd
21. Dow Silicones 海角视频
22. Dragon Fleetcare Ltd
23. Encon Construction
24. EOM Electrical Contractors Ltd
25. Everbright Hotel Group
26. Fire-Rite 海角视频
27. FP Hurley and Sons Construction
28.Freight Movement Ltd
29. Haven Waterway Enterprise Zone Advisory Board
30. Haven/Bourne-Leisure
31. HEXA Finance Ltd
32. Infinite Electrical Engineering Ltd
33. Invacare Ltd
34. Ledwood Mechanical Engineering Ltd
35. Lloyd Morris Electrical Ltd
36. M W H Heating and Plumbing
37. Mrs Bucket Cleaning
38. Nexperia Newport Ltd
39. North Plumbing and Heating
40. North Wales Business Council
41. Orbis Education and Care
42 P&P Building and Roofing Contractors Ltd
43. Pearsons Garage
44 .Pengwin
45. Phoenix Hire & Sales
46. PHS Group
47. Pole to Pole Climate Control
48. Port of Milford Haven
49. Powerlink Electrical Services Ltd
50. Prosteel Engineering
51. R & M Electrical (SW) Ltd
52. Rhoose Electrical Services
53. RJB Electrical Associates Ltd
54. SA Brain & Co Ltd
55. Safran Seats
56. Saundersfoot Harbour
57. Seda 海角视频
58.Simon Safety & Lifting Centre Ltd
59. Spiros Cardiff Ltd
60. Stately Albion
61. Strasdin Joinery Ltd/Merge Services Ltd
62. Switch Start Electrical Ltd
63. Tennaco Walker
64. The Celtic Collection
65. Wales & West Utilities
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