Promoting apprenticeships through procurement

Introduction

Youth unemployment (16-24’s) is high on the agenda of all political parties and apprenticeships are seen as a key strategy towards addressing this issue. A positive approach towards apprenticeships is a way of minimising the social and economic impacts of youth unemployment. In addition, there is now a requirement on local authorities to report progress on apprenticeship numbers to central government on a quarterly basis. 

Best practice indicates that the numbers of apprentices can be grown by:

• Through economic regeneration projects within the community
• Acting in a corporate parent role to the young people we support
• By increasing the number of apprenticeship posts in our core service areas
• Via procurement contracts.

Partner authorities may be able to provide a variety of apprenticeships in their core service areas. However, this may be more difficult in areas of traditional craft apprenticeships such as construction, engineering, IT etc where this type of work has often been outsourced to external suppliers. This is where procurement is key to expanding apprenticeship numbers and helping to reduce youth unemployment and its consequences in the communities where contracts are being performed on our behalf.

Nottingham City Council’s one in a million strategy demonstrates how public procurement can be successfully used to encourage uptake of apprenticeships.  For every £1 million of contract spend to refurbish social housing the selected contractor will employ one apprentice. Please follow this link for further information.

Many of our suppliers will already employ apprentices. However, through the award of contracts and by means of supplier relationship management, the partner authorities have the opportunity to further promote apprenticeships.

Apprenticeships through procurement

Procurers seeking to consider apprenticeships in the award of contracts should ensure that any obligations are carefully framed in order to ensure value for money is not compromised and that requirements are consistent with the EU procurement regime. There is also significant scope to promote apprenticeships with suppliers on a voluntary basis.

Partner authorities will need to assess the potential for the inclusion of apprenticeships in contracts on a case-by-case basis. Apprenticeships must be proportionate to the primary aim of the contract and should relate to the supplier’s performance of the contract, not to the supplier’s wider workforce. As such, apprenticeships through procurement are likely to be only applicable to high value longer-term contracts for services and works. In some very limited situations apprenticeships may be appropriate in certain types of supplies contracts.

Taking forward apprenticeships through procurement

The scope for apprenticeships in a particular contract should be considered at the initial pre-procurement stage. By considering apprenticeships early in the procurement process, appropriate decisions can be taken as to whether apprenticeships are best addressed through specifications, award criteria or contract conditions. Partner authorities wishing to include apprenticeships in contracts are encouraged to contact Procurement Lincolnshire for further support. Useful guidance has been produced by the OGC in regard to how public bodies can legally pursue apprenticeships through their procurement activity (see attachments).

In terms of evaluating the outcomes of apprenticeships through procurement it is appropriate to monitor the progress of apprentices engaged in work on our behalf in the following categories:

• Age ranges ( 16-18; 19+)
• Gender
• Types of apprenticeship ( electrician, business admin)
• How many successfully complete the qualification.
• How many obtained permanent employment.

In summary, public procurement can be an important tool in combating youth unemployment and by positively addressing this issue, the partner authorities can realise a number of social and economic benefits.

Information on apprenticeships

An apprenticeship includes:

• an employment contract usually lasting 6 months - 2 years
• practical work experience
• completion of a relevant NVQ & Technical Certificate
• key skills support (literacy, numeracy & communication) and qualification
• minimum salary of £95 per week at age 16 -17 rising to £120 at 18 years old.

Qualifications are fully funded for ages 16 – 18 and some 19+ funding is available but this is limited. Qualification and funding support is obtained via a training provider - this can be a college or a private company.
Mouchel Learning Partnership is just one of many organisations who can provide suppliers with advice and guidance on apprenticeships and their Apprenticeship Team can be contacted on 01522 518008. It should be noted Procurement Lincolnshire does not endorse any specific training provider and other providers are available.

Suppliers can recruit apprentices for their organisations via the National Apprentice Service web site free of charge (www.apprenticeships.org.uk). The training provider will work with the supplier to create the recruitment advert and will enter it for them. Once recruited, the training provider registers the apprentice which releases the qualification funding.