Apprenticeships more valuable to UK economy than Olympics

City & Guilds holds parliamentary reception to unveil their findings to the Government

The UK is set to benefit from a £5.57 billion increase if a million extra apprenticeship places are created by 2013, comparable to a £5.1 billion uplift  expected as a result of the Olympic Games, according to new research  released by City & Guilds.

It is great to see City & Guilds working with employers to help solve the challenges around hiring apprentices to ensure that more organisations are able to offer places.

As part of Apprenticeship Week 2012 City & Guilds, the UK’s leading provider of vocational education, will bring together key political leaders and employers from across the UK to discuss the findings, look at the longer term economic impact of hiring apprentices and highlight the value apprenticeships can add to business. The event will take place on 7 February at the Houses of Parliament.

Chris Jones, CEO and Director General, City & Guilds said: “As we continue our campaign to help ensure one million apprenticeship starts by summer 2013, we are committed to working with employers, training providers and the Government to provide the tools, support and inspiration needed to achieve our goal. At a time when Olympics fever has gripped the entire country its important that Britain wakes up  and appreciates the true value of apprenticeships.”

Steve Holliday, CEO of the National Grid said: “Business leaders are increasingly recognising that apprentices are key to the future of this country and today’s research highlights just how important apprentices are in aiding the UK’s economic recovery. At the National Grid, we are committed to ensuring that our staff have access to high quality apprenticeships. That’s why it is great to see City & Guilds working with employers to help solve the challenges around hiring apprentices to ensure that more organisations are able to offer places.”

Key report findings: 

Economic impact of creating a million extra apprenticeship places by 2013 *

• Value to business per annum by 2014 - £459 million
• Value to business per annum by 2017 - £602 million 
• Cumulative value to business 2012 – 2020 - £4.37 billion

Wider impact on the UK economy of creating additional apprenticeship places

• Cumulative tax impact 2012 – 2020 -  £1.2 billion
• Wider economic impact (net value) per annum by 2020 - £55 million

Sectoral impact of apprenticeship starts

• Engineering - £267 million
• Construction - £259 million
• Customer Services - £201 million
• Business Administration - £180 million
• Health & Social Care - £148 million
• Hospitality & Catering - £126 million
• Active Leisure and Learning - £74 million
• Hairdressing - £67 million
• Childcare - £66 million
• Retail - £64 million

Ends

Notes to Editors

For further information or interviews with Chris Jones or Steve Holliday please contact:
Fiona Suttie
020 7413 3045
Fiona.Suttie@hkstrategies.com

Kate Lupton
0207 413 3769
Kate.lupton@hkstrategies.com

About the report

City & Guilds’ insight into the economic value of apprenticeships

The report draws on available data and documentary evidence on the nature of future skills demand, the economic contribution of apprenticeships and the impact that such skills investment has on business productivity, enterprise and earnings, as well as existing data from previous City & Guilds’ reports.

The report forms part of Million Extra, City & Guilds’ campaign launched in 2011 to help ensure one million apprenticeship starts by summer 2013. The report’s data sources have enabled the development of an econometric model, which projects the effect of achieving this goal and takes into account the direct impact on businesses and the wider UK economy.

With more apprentices developing their skills in one of 1000 approved City & Guilds apprenticeship training centres, City & Guilds offers over 300 apprenticeships in industries from management to retail; animal care to plumbing.

For more information, visit www.million-extra.co.uk

* Unless otherwise indicated all figures in the release are gross. For a full version of the report please contact a member of the City & Guilds team

Gross refers to the total amount of expected benefits that additional recruitment of extra apprentices is expected to bring. These benefits derive from improved labour supply, more efficient staff recruitment and retention and productivity gains from workers with the ‘right’ skills and who have embraced company values.

The net figure takes into account factors such as those people who would have completed a different form of vocational training if they had not been offered one of the new apprenticeships or those people who did not remain in employment once they had completed their apprenticeship. 

Please find net impact figures below.

Economic impact of creating a million extra apprenticeship places by 2013

• Value to business per annum by 2017 £322 million
• Cumulative value to business 2012 – 2020 £2.35 billion

Wider impact on the UK economy of creating additional apprenticeship places

• Cumulative tax impact 2012 – 2020 £643 million

About City & Guilds

City & Guilds (www.cityandguilds.com) is the UK's leading vocational education organisation. Approximately 1.9 million people are currently working towards a City & Guilds qualification in the UK and Ireland.

Million Extra is City & Guilds campaign to support the National Apprenticeship Service and government by collaborating with employers, training centres, trade and industry bodies and government agencies to help ensure one million people start an apprenticeship by summer 2013.

Million Extra was launched last year at the start of National Apprenticeship Week 2011 at City & Guilds’ first ever Apprenticeships Summit at the top of the Gherkin, attended by 64 political and business leaders. The Summit included a speech from Chief Secretary