a qualitative study of apprenticeship pay

8/9/2019 A Qualitative Study of Apprenticeship Pay

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AQualitativeStudyof

ApprenticeshipPay

AnipprreporttotheLowPayCommission

byKayteLawtonandEmmaNorris

January2010

ippr2010

InstituteforPublicPolicyResearchChallengingideas Changingpolicy

WWW.IPPR.ORG


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ippr|AQualitativeStudyofApprenticeshipPay2

Aboutippr ............................................................................................................................. 3

Abouttheauthors ................................................................................................................. 3

Authorsacknowledgements................................................................................................. 3

Executivesummary................................................................................................................ 4

1.Introduction.................................................................................................................... 10

2.Youngpeoplesreasonsforstartinganapprenticeship .................................................. 14

Descriptionoffocusgroupparticipants.......................................................................... 14

Routesintoapprenticeships ............................................................................................ 15

Learningaboutapprenticeships...................................................................................... 16

Decidingtodoanapprenticeship:influencesandmotivations...................................... 16

Summaryandconclusions.............................................................................................. 22

3.Youngpeoplesexperiencesofapprenticeships ............................................................ 23Apprenticepay ............................................................................................................... 23

Trainingquality............................................................................................................... 26

Earlyleavers:therelationshipbetweenpayandtrainingquality .................................. 28

Plansforthefuture........................................................................................................ 29


4.Youngpeoplesviewsonanationalminimumwageforapprentices ............................ 31

Currentapprenticepayarrangements............................................................................ 31

Anationalminimumwageforapprentices:themoralarguments............................... 31

Anationalminimumwageforapprentices:participantsperspectivesonthepotential

impacts ........................................................................................................................... 33

Anationalminimumwageforapprentices:participantsviewsonhowitmightwork. 35Reformingapprenticepay:policyoptionsputforwardbyparticipants ........................ 37


5.Employersperspectivesonapprenticepay................................................................... 40

Profileoftheemployers................................................................................................. 40

Currentpayarrangementsforapprentices..................................................................... 40

Anationalminimumwageforapprentices:employersperspectivesonthepotential

impacts ........................................................................................................................... 43

Anationalminimumwageforapprentices:employersviewsonhowitmightwork ... 46

Increasingthenumberofapprenticeshipsandimprovingcompletionrates................. 47


6.Trainingprovidersperspectivesonapprenticepay ....................................................... 50

Currentapprenticepayarrangements............................................................................ 50

Influencesonyoungpeoplesdecision-making............................................................. 51

Thepotentialimpactofanationalminimumwageforapprentices............................... 51


7.Careersadvisersperspectivesonapprenticepay .......................................................... 54

Careersadvisersviewsonapprenticeships.................................................................... 54

Careersadvisersperspectivesonyoungpeoplesdecision-making............................... 55

Careersadvisersadvicetoyoungpeopleonapprenticepay ........................................ 56


8.Conclusionsandpolicyimplications............................................................................... 57

References .......................................................................................................................... 61

Annex:Copyofthesurveyofcurrentapprentices ............................................................ 62

Contents


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TheInstituteforPublicPolicyResearch(ippr)istheUKsleadingprogressivethinktank,producing

cutting-edgeresearchandinnovativepolicyideasforajust,democraticandsustainableworld.

Since1988,wehavebeenattheforefrontofprogressivedebateandpolicymakingintheUK.Throughourindependentresearchandanalysiswedefinenewagendasforchangeandprovidepractical

solutionstochallengesacrossthefullrangeofpublicpolicyissues.

WithofficesinbothLondonandNewcastle,weensureouroutlookisasbroad-basedaspossible,

whileourGlobalChangeprogrammeextendsourpartnershipsandinfluencebeyondtheUK,givingus

atrulyworld-classreputationforhighqualityresearch.

ippr,30-32SouthamptonStreet,LondonWC2E7RA.Tel:+44(0)2074706100E:[email protected]

www.ippr.org.RegisteredCharityNo.800065

ippr2010

Aboutippr

Authorsacknowledgements

TheauthorswouldliketothankTonyStudd,JessieEvansandTimButcherattheLowPay

Commissionforassistancethroughouttheprojectandforcommentsonearlierdraftsofthereport.

Wewouldalsoliketothankthefollowingipprcolleaguesfortheircommentsonearlierdraftsofthisreport:TonyDolphin,KateStanley,DaliaBen-GalimandCareyOppenheim.ThanksalsotoRitaBeden

atipprforadministrativesupport.

SpecialthankstoRachelSeal-Jonesatipprforsignificantresearchsupportonthisproject.

Finally,wewouldespeciallyliketothankeveryonewhogaveuptheirtimetoparticipateinthis

research.

Theauthorstakefullresponsibilityforthecontentofthereport.

Abouttheauthors

AtthetimeofwritingKayteLawtonandEmmaNorriswerebothResearchFellowsworkingonthe

Citizen,SocietyandEconomyprogrammeatippr.EmmaNorrishassinceleftippr.


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Althoughmostapprenticesareemployed,themajorityareexemptfromNationalMinimum

Wagelegislation,andpayratesforapprenticesvarysignificantlyacrossdifferentindustries

andbygenderandage.TheLowPayCommission(LPC)hasbeenaskedbyGovernmenttoconsiderhowapprenticepaycouldbebroughtundertheNationalMinimumWage

framework.Thisreport,commissionedbytheLowPayCommission,examinesvariationsin

apprenticepayacrosstheUKandtheroleofapprenticepayinyoungpeoplesdecisionsto

startandcompleteanapprenticeship.Thereportalsoconsidersthepotentialresponsesof

employerstotheintroductionofanationalminimumwageforapprentices.

Apprenticesundertheageof19areexemptfromminimumwagelegislationandthoseaged

19oroverareexemptiftheyareinthefirstyearoftheirapprenticeship.InEngland,for

apprenticeshipsfundedthroughtheNationalApprenticeshipService(NAS)/Learningand

SkillsCouncil(LSC),thereisarequirementthatallemployedapprenticesmustbepaida

minimumof95aweek(80aweekpriorto1August2009).NosucharrangementexistsinScotland,WalesorNorthernIrelandandsoapprenticesoutsideEnglandarenotsubjectto

anyminimumpayrate.

Apprenticeshipsformakeyplankofgovernmenteffortstoincreaseparticipationin

educationandtrainingaftertheageof16.Theyofferacombinationoftheoreticaland

practicallearningdesignedtobeattractivetoawiderangeofyoungpeople,aswellas

supportingthetrainingneedsofindustry.TheLPCisconsideringapprenticepayinthe

contextofarisingparticipationageinEngland,withyoungpeoplebeingobligedtoremain

inaccreditededucationortraininguntiltheageof18by2015,andambitioustargetsto

increasethenumberofapprenticeshipstarts.

Thisreportisconcernedprimarilywithemployedapprenticesaged16to24workinginhairdressing,retail,earlyyearschildcare,hospitalityandsocialcarealllow-payingsectors

employingmainlyfemaleapprentices.Wealsolookedattheengineeringsectorfor

comparison,asapprenticepayisnormallyhigherhereandthevastmajorityofapprentices

aremale.Thefindingspresentedinthisreportarebasedonfocusgroupandsurveyresearch

withapprenticesandotheryoungpeopleacrosstheUK,plusinterviewswithemployers,

trainingprovidersandcareersadvisers.

Youngpeoplesreasonsforstartinganapprenticeship

Paywasthemainmotivationforsomefocusgroupparticipantstostartanapprenticeship,

butnotforthemajority,anditwasmoreimportantforapprenticesworkinginretailand

hospitality.Thiswaspartlybecausetheyweremorelikelytohavebeenworkingjustbeforestartinganapprenticeship,sotheywerekeentomaintaintheirearningswhilegaininga

qualification.Paywasalsomoreimportantforyoungpeoplewhonolongerlivedwiththeir

parents,andforolderapprentices.

Forthemajorityofparticipants,paywasafactorbutitwasnotthemainreasonforstarting

anapprenticeship.Youngpeopletoldusthatfamilyandsocialbackgroundhadaverystrong

influenceontheirdecisiontostartanapprenticeship.Thiswasespeciallytrueforhairdressing

andengineeringapprenticesandmanyparticipantsworkinginthesesectorshadfamilyor

friendsworkinginsimilarindustries.

Incontrast,somefocusgroupparticipantssaidtheirparentswouldhavepreferredthemto

takeamoreacademicroute,andthiswasalsothemessagethatmostparticipantshad

receivedfromcareersadvisersandteachers.Participantssaidthatcareersadviserssometimes

failedtodiscussoptionslikeapprenticeshipswithyoungpeoplewhowereconsideredtobe

Executivesummary


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performingwellatschool.Theyoungpeoplewespoketofeltfrustratedbythisandthought

thatmoreinformationandguidanceaboutapprenticeshipsshouldbeavailabletoeveryone.

Familyandsocialbackgroundalsocamethroughinparticipantsdesiretogainahigh-quality

qualificationthroughanapprenticeship.Thiswasoneofthemostimportantmotivationsfor

youngpeople,particularlyforhairdressingandengineeringapprentices,withmanyfeeling

thatapprenticeshipsofferstrongercareerroutesthanacademicqualifications.Gaininga

tradeforlifewasalsokeyformany,providingsecurityandsomethingtofallbackon.

Theimportanceofgainingaqualificationandlearningatradewasalsoreflectedinour

surveyof160currentapprenticesinEngland.Apprenticesinretailandhospitalitywereless

likelytoseetheirapprenticeshipasalong-termcareeroption.Theseapprenticeships

appearedtoofferlesstrainingtimeandarealsoperhapslessvocationalsubjects.

Participantsalsochoseapprenticeshipsbecausetheyprovidelotsofworkexperienceand

offeragoodalternativetofull-timeeducationforpeoplewhowanttocontinuelearningbut

notinaformalsetting.

Whenitcametopay,apartfromtheminorityofparticipantswhowereprimarilymotivated

bypay,itwasthepresenceofawagethatwasimportantratherthanthelevelofpayas

longasthewagewassufficientlyhigherthantheEducationalMaintenanceAllowance,which

paysupto30aweektoyoungpeopleinfull-timeeducation.Inourfocusgroups,

participantsdidnotdiscusstheinteractionbetweenapprenticepayandbenefits,towhich

they,theirparentsortheirpartnersmayhavebeenentitled.Thiswasnotraiseddirectlyby

ourfocusgroupdiscussionguideandwasnotbroughtupbyparticipants.However,thismay

beanissuethatrequiresfurtherresearch.

Youngpeoplesexperiencesofapprenticeships

Apprenticepayvariedconsiderablybothacrossandwithinthedifferentsectorscoveredbyourresearch.Paywaslowestinhairdressingwithhigherwagesavailableinretail,hospitality

andengineering.Thesesectoralpatternsmeantthatfemaleapprenticesweremorelikelyto

bereceivinglowerwages.Inourfocusgroups,thefemaleparticipantswespoketowereall

workinginthelow-payingsectors;therewerenofemaleparticipantsinthehigherpaying

engineeringsector.Wedidnotidentifyanystrongdifferencesinpayalonggenderlines

withinsectors.

Oursurveyofyoungpeopledidnotallowustolookatdifferencesinpaybycountry

becausewereceivedarelativelysmallnumberofresponsesfromyoungpeopleinWalesand

Scotland.Threefocusgroupparticipantswerereceivingwhatcouldbecalledverylowwages

(belowthe95LSC/NASrate)twoinBelfast(bothon60aweek)andoneinGlasgow

(earningabout46aweek).OneoftheBelfastparticipantsalsoappearedtobeentitledto,

butnotreceiving,theminimumwage,sinceshewasagedover19andhadbeendoingher

apprenticeshipformorethanayear.ThisalsoappliedtooneparticipantinCardiff.Thismay

suggestthatthereissomeriskofverylowapprenticepayoutsideEngland.However,the

numberofpeopleinvolvedinourfocusgroupswasnotsufficienttobeabletodrawany

strongconclusionsandfurtherresearchmaybeuseful.Italsoindicatesthattheremaybean

issuearoundapprenticesreceivingapayincreasewhentheyturn19andhavebeenonthe

coursemorethanayear.

Mostoftheyoungpeoplewespoketowereunhappywiththeirpayandfeltitfailedto

reflecttheworktheydidandthecontributiontheymadetotheorganisationsinwhichthey

worked.Youngerapprenticeswerelesslikelytobeconcernedabouttheirpay,possibly

becausetheyhadlessawarenessofthewagesavailableelsewhereandalsobecausemost

werelivingwithparentsanddidnothavetocoverthefullcostoflivingfromtheirwages.


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However,almostalltheyoungpeoplewhotookpartinourfocusgroupswerepreparedto

acceptlowapprenticewagesinreturnfortwoimportantadvantages:jobsatisfactionandthe

prospectofhigherwagesinthefuture.Manyparticipantscomparedthemselveswithfriends

workingfull-timewhoreceivedmuchhigherwagesbutdidmonotonousandunrewarding

work.Apprenticesinhairdressing,earlyyearsworkandengineeringwereparticularlylikelytoreporthighlevelsofjobsatisfaction.Participantsalsocomparedtheirfutureearningswith

thoseofpeersinjobswithouttraining.Theyrecognisedthetrade-offbetweenlowwages

nowandhigherwageslateron,whereastheyfeltthatfriendsonhighersalariesnowhadfew

progressionopportunities.

Allourfocusgroupparticipantstoldusthatthetrainingtheyreceivedwasofvariablequality

apartfromtheengineeringapprentices,whowereuniformlypositiveabouttheirtraining.

Engineeringapprenticeshipsareknowntobeofhigherqualitywithlongercoursesandmore

off-the-jobtraining.Trainingqualityseemedparticularlyproblematicinretailandhospitality,

withparticipantsfeelingthattheywerejustcertifyingexistingskillsandreceivingless

supportfrommanagers.Therelationshipbetweentrainingqualityandpaywascomplex.Weconductedonefocus

groupwithyoungpeoplewhostartedbutdidnotcompleteanapprenticeshipandfound

thattheyweremuchmorelikelytohavebeenonthelowestwagesandtohavereceived

poorqualitytraining.Mostpeopleinthisgrouplefttheirapprenticeshipearlybecauseofthe

lowstandardoftrainingbuttheyalsosaidtheymayhavestayedifwageshadbeenhigher.

Basedontheexperiencesoffocusgroupparticipants,italsoappearedthatemployerswho

paidlowerapprenticewagesingeneralprovidedpoorerqualitytraining.

Youngpeoplesperspectivesonanationalminimumwageforapprentices

Theyoungpeoplewhotookpartinourfocusgroupsweregenerallyawareoftheminimum

wageexemptionsforapprenticesbutwerelessclearabouttheageatwhichapprentices

becomeeligiblefortheminimumwage.Participantspreferredminimumwageratesbasedon

qualifications,performanceoryearofapprenticeshipratherthanage,andmostwere

unhappyaboutthecurrentagebandswithinthenationalminimumwage.Theyalso

preferredhourlypayratestoweeklyones.

Participantsweresplitaboutwhetherapprenticesshouldbesubjecttothesameminimum

wageratesasotherworkers.Hairdressingandengineeringapprenticesweremorelikelyto

acceptthatthereshouldbepaydifferentialsbetweenapprenticesandotherstaff.This

reflectsthenecessityofhavingqualificationsandexperienceintheseindustries,which

createsacleardistinctionbetweentraineesandqualifiedworkers.Thisdivisionwasless

apparentinearlyyears,retailandhospitality,withapprenticesdoingsimilarworktootherstaff,whichmeantthatapprenticesinthesesectorsfounditdifficulttounderstandwhythey

shouldreceivemuchlowerwages.

Therewassomedebateaboutthepotentialimpactsofbringingapprenticepayunderthe

nationalminimumwageframework.Participantsfeltthatmoreyoungpeoplewouldbe

interestedinapprenticeships,whichcouldbepositive,butcouldalsoincreasecompetition

forplaces.Thiswasaparticularconcernamongthosewhofeltthatemployerswouldcut

backonthenumberofapprenticeshipplacestheyoffered.Engineeringapprenticeswere

especiallyconcernedaboutthenegativeimpacts,perhapsawareofthestrongreputation

andhighqualityoftraininginengineeringapprenticeships.

Therewasalsodisagreementaboutwhetheraminimumwagewouldimprovecompletion

rates.Someyoungpeoplearguedthatcommittedapprenticeswouldnotbedeterredbylow

wages,butsomeparticipantswereconcernedthatlowwagesmadeitlikelythatyoung


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peoplewouldbetemptedawayfromtheirapprenticeshipifhigherwageswereavailable

elsewhere.Otherssuggestedthatregularpayrisesweremoreimportantforcompletionrates

thanthelevelofthestartingwage.

Focusgroupparticipantsalsohadsomeinterestingsuggestionsforimprovingpay

arrangementsforapprentices,withaparticularfocusonsupportingemployerstoprovide

placesandimprovingcompletionrates.Theirsuggestionsincludedwagesubsidiesfor

employers,regularpayrisesandcompletionbonuses.

Employersperspectivesonapprenticepay

Weinterviewed12employersinhairdressingandearlyyears,allofwhomregularlyemployed

apprentices.Alltheintervieweeswereawareoftheminimumwageexemptionsfor

apprenticesbutsomewerenotclearabouttheageatwhichtheminimumwagebecomes

payableforapprenticeswhohadbeendoingtheircourseformorethanayear.

Amongtheemployerswespoketotherewasaclearsplitbetweenthosewhousedminimum

wageexemptionsforapprenticesandthosewhodidnot.Employerswhodidnotusetheexemptionsweresupportiveofaminimumwageforapprenticesandfeltitwouldbefairerto

youngpeopleandhelpavoidpotentiallyexploitativepractices.

Employerswhomadeuseoftheexemptionsthemajorityofintervieweeswerevery

concernedaboutthepotentialimpactofanationalminimumwageforapprentices.Most

employersinthisgroupsaidtheywouldofferfewerapprenticeshipplacesandaminoritysaid

theywouldcuttheirapprenticeshipprogrammealtogether.Possiblechangestothenumber

ofapprenticeshipplaceswasamuchmorecommonsuggestionthanchangestothestyleor

amountoftrainingofferedbyemployers.Concernsabouttheintroductionofanational

minimumwageforapprenticeswereparticularlystrongamonghairdressingsalonmanagers,

suggestingthatmanyhairdressingbusinessesrelyonbeingabletoemployapprenticesonverylowwages.

Oneofthestrongestmessageswereceivedfromemployerswasthatintroducinganational

minimumwageforapprenticeswouldreducethenumberofemployer-ledapprenticeshipson

offer,encouragingmoreyoungpeopletodocollege-basedvocationalcoursesinstead.

Employerswereverycriticalaboutthequalityandappropriatenessofsuchcoursesin

hairdressingandearlyyearsandwereconcernedabouttheemployabilityofyoungpeople

whoundertookthem.

Currentpaylevelswerenotseenasabarriertotheprovisionofapprenticeshipplaces,but

therewasdisagreementaboutwhetherlowlevelsofpaycontributedtorelativelylow

completionrates,andthereforewhetheranationalminimumwagewouldhelpimprovecompletionrates.

Employerswhowereopposedtoanationalminimumwageforapprenticeswerereluctantto

giveapreferenceforthelevelatwhichanyminimumshouldbeset.Therewasapreference

amongtheseemployersforaweeklyminimumandforage-relatedratesforallapprentices,

regardlessofleveloryear.

Otherperspectivesonapprenticepay

Wealsospoketoanumberoftrainingprovidersandcareersadvisersabouttheirviewson

apprenticepay.Trainingprovidersagreedthatpaywasrarelythemainreasonforyoung

peopletostartanapprenticeship,withthelong-termcareeropportunitieslinkedtoapprenticeshipsbeingmuchmoreimportant.Therewasdisagreementamongtheproviders

weinterviewedaboutwhetherornotpaylevelswereimportantinencouragingyoung

peopletofinishanapprenticeship.


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Mosttrainingproviderssharedtheconcernsofemployersabouttheeffectofaminimum

wageforapprenticesontheprovisionofemployer-ledapprenticeships.Aswithemployers,

thiswasaparticularconcerninthehairdressingindustry.Trainingprovidersalsofeltthatany

increaseinparticipationincollege-basedvocationalcourseswhichmightresultfromthe

introductionofaminimumwageforapprenticescouldbedamagingforyoungpeoplesemploymentprospects.

Careersadvisersweregenerallyverypositiveaboutapprenticeships,althoughtheystated

thattheywouldbelesslikelytorecommendthemtoacademicallyablestudents.Theyalso

supportedtheevidencefromourfocusgroupsabouttheinfluenceoffamilybackgroundon

youngpeoplesdecisiontostartanapprenticeship.Somecareersadvisersfeltthata

minimumwageforapprenticescouldhelpthemprovidecleareradvicetoyoungpeople

aboutthelevelofpaytheycouldexpect.

Conclusionsandpolicyimplications

Ourresearchsupportspreviousstudiesthathavefoundwidevariationsinapprenticepay

acrosstheUK,withparticularlylowratesofpayforapprenticesinthehairdressingindustry.

Thisindicatesthatanationalminimumwageforapprenticeswouldhavethemostimpacton

low-payingsectors,especiallyhairdressing,whichtendstoemployfemaleapprentices.Our

studywasinconclusiveaboutdifferencesinapprenticepayacrossthefourcountriesofthe

UK.

Paywasclearlyanimportantfactorinyoungpeoplesdecisionstostartanapprenticeship,

butitwasrarelythemainmotivation.Asmostapprenticeshipsareover-subscribed,this

suggeststhatthereisnotastrongargumenttointroduceanationalminimumwagefor

apprenticesinordertoincreasethenumberofyoungpeoplewantingtodoapprenticeships.

However,itmaybethatchangestothepayarrangementsforapprenticeswouldmake

apprenticeshipsamoreattractiveoptiontoawiderrangeofyoungpeopleincludingyoung

peoplewhooptedforamoreacademicrouteaswellasthosewhowentstraightintoajob

withouttraining.Inourresearch,wedidnotspeaktoyoungpeoplewhochoseotherpost-

16routes,buttherelativelylowpayassociatedwithapprenticeshipsmayhavebeenafactor.

Therewassomeevidencefromourfocusgroupsthatanationalminimumwagefor

apprenticeswouldincreaseyoungpeoplesinterestinapprenticeships,althoughitwasnot

clearwhetherthiswouldbeamonghigherorlowerachievingyoungpeople.Ineithercase,

government,employersandtrainingproviderswouldhavetodevelopwaystomanageboth

apotentialincreaseininterestandchangesinthecohortofyoungpeoplewhoareinterested

inapprenticeships.Thiswillbeparticularlyimportantifsomeemployersfeelitnecessaryto

reducethenumberofapprenticeshipplacestheycanoffer.

Therewasmoreevidencefromourresearchthataminimumwageforapprenticeswould

increasecompletionrates.However,tohavethemaximumeffect,itwouldhavetobe

introducedalongsideapackageofmeasuresdesignedtoimprovetrainingqualityinsome

low-payingsectors;andtoprovideotherformsoffinancialincentivestoapprentices,

especiallyregularpayrisesandcompletionbonuses.

Therewaswidespreadconcernamongemployersandtrainingprovidersabouttheeffectof

anapprenticeshipminimumwageontheprovisionofemployer-ledapprenticeships.Ifa

minimumwageweretobeintroduced,somelow-payingsectors,especiallyhairdressing,may

needtobesupportedtomaintainorincreasethesupplyofapprenticeshipplaces.Measures

couldincludewagesubsidiesandgroupapprenticeshipprogrammes.Thiswouldhavetobea

decisionbygovernmentinthecontextofotherspendingandpolicypriorities,andadditional

supportshouldbematchedbyhigherstandardsoftrainingquality.


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However,ourresearchhasidentifiedanimportantrelationshipbetweenpayandtraining

quality,anditmaybethatifemployersarerequiredtopayaminimumwagetoapprentices,

theywillinvestmoreinthetrainingandsupportprovidedtoapprenticesinorderto

maximisetheirreturn.Theymayalsobeincentivisedtoensureabetterfitbetweenthe

apprenticeandprogrammeoftraining,applyingstricterentryrequirementstoattractthebestcandidates.Inaddition,aminimumwagecouldmeanthatsomeofthepoorestquality

apprenticeshipsarewithdrawnbyaminorityofemployerswhodonothaveagenuine

interestinofferinggoodqualitytraining.Aminimumwagecouldthereforehavesomeimpact

onthequalityofemployer-ledapprenticeshipsoverallandoncompletionrates,althoughour

researchwasnotabletolookatsomeofthesequestionsindetail.Furtherresearchandclose

monitoringoftheeffectofanychangestoapprenticepayarrangementswouldbeuseful.

Employersandtrainingprovidersalsoappeartohavelegitimateconcernsaboutthequality

andappropriatenessofcollege-basedvocationalcourses,andtheseshouldbeaddressedby

theGovernmentandthedevolvedadministrations.Aclearerfocusonemployer-led

apprenticesasthegoldstandardwouldbeapositivestep.Ourfinalconclusionisthatanationalminimumwageforapprenticeswouldprovidegreater

claritytoemployers,youngpeople,andthoseadvisingandsupportingyoungpeople,about

theemploymentrightsofapprentices.Thiscouldhelptoimprovecompliancewithnational

minimumwagelegislationintheminorityofcaseswhereemployersarefailingtopay

apprenticesthecorrectwage.


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Apprenticeshipsofferacombinationofwork-basedandtheoreticallearning.Most

apprenticesareemployedandreceiveawage,butemployerswhoemployapprenticescan

makeuseofexemptionsfromNationalMinimumWage(NMW)legislation.ApprenticepayvariessignificantlyacrosstheUK,particularlybysectorandgender(LPC2009).

Thisreportlooksathowapprenticepayratesaffectyoungpeoplesdecisionstostartand

completeanapprenticeship.Italsoexaminesemployersuseofminimumwageexemptions

forapprenticesandhowtheymightbeaffectedifapprenticepayweretobebroughtunder

theNationalMinimumWageframework.

Policycontext

IntheUK,apprenticesundertheageof19andthoseover19andinthefirstyearofan

apprenticeshipareexemptfromtheNationalMinimumWage.InEngland,for

apprenticeshipsfundedthroughtheNationalApprenticeshipService(NAS)/Learningand

SkillsCouncil(LSC),thereisarequirementthatallemployedapprenticesmustbepaida

minimumof95aweek(80aweekpriorto1August2009).Thisisacontractual

arrangementbetweentheNAS/LSCandthetrainingprovider,ratherthanastatutory

minimum.InScotland,WalesandNorthernIreland,thereisnocontractualminimumpayrate

foremployedapprentices.

ThedifferencesinpayarrangementsacrosstheUKreflectthefactthateducationand

trainingaredevolvedpolicyareas,althoughtheNMWisareservedmatter.Asaresult,

apprenticeshippolicyvariesacrossthefourcountriesoftheUK.InEngland,theGovernment

hasplannedaconsiderableexpansionofapprenticeships,withatargettohaveatleast

400,000apprenticeshipstartsby2020,comparedto224,000in2007/08(Officefor

NationalStatistics2009).TheApprenticeships,Skills,ChildrenandLearningAct2009also

includesaguaranteeofanapprenticeshipplaceforeverysuitablyqualified16to18yearold

inEnglandby2013.Thisisinthecontextoftherisingcompulsoryeducationandtraining

participationageinEngland,whichwillincreasefrom16to17in2013andto18in2015.

TheGovernmentiskeentoensureasufficientsupplyofapprenticeshipplacestohelpmeet

thesetargets.Currently,therearenoplansinScotland,WalesorNorthernIrelandtoraisethe

participationage.

Howapprenticeshipswork

Apprenticeshipscanbetakenatlevel2(equivalenttofiveGCSEsatgradeA-C)andlevel3

(equivalenttoatleasttwoA-levels).InEngland,apprenticeshipscanalsobetakenatlevel4

(equivalenttoadegree)inengineeringandIT.Anapprenticeshipisaframeworkforlearning

ratherthanaqualificationinitsownright.Thebrandingandcontentofapprenticeshipsvary

inthefourcountriesoftheUKandacrossdifferentindustries,butlearnerswillnormally

receivesomeorallofthefollowing:anNVQattherelevantlevel;atechnicalcertificate;a

basicskillsqualification;traininginemploymentrightsandresponsibilities.

Apprenticesongovernment-fundedapprenticeshiptrainingcaneitherbeemployedand

waged,ornotemployedandinreceiptofeithertheEducationMaintenanceAllowance

(EMA)oratrainingallowance.Non-employedapprenticesareoftenbasedincollegesor

trainingcentresandmayundertakeworkplacementsaspartoftheirapprenticeship.This

reportisprimarilyaboutemployedandwagedapprentices.Statefundingforapprenticeships

isusuallychannelledthroughtrainingprovidersratherthanemployers,andemployersare

expectedtomeetthecostsofapprenticeswages.

1.Introduction


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Projectaims

TheresearchpresentedinthisreportwascommissionedbytheLowPayCommissioninApril

2009.ThiswasinthecontextoftheCommissionsremitfor2009/10toconsidertherate

anddetailedarrangementsforanapprenticeminimumwageundertheNationalMinimum

Wageframework.Thecentralaimsoftheprojectwere:

TogainaninsightintohowapprenticeshippayratesdifferacrosstheUK,includingbycountry,apprenticeshiplevel,industrysector,ageandgender.

Tounderstandtheimportanceofpayinthetake-upandcompletionofapprenticeshipsrelativetootherfactors(suchaspeereffects,familybackgroundandcareersadvice),

andhowthisvariesbygender,age,sectorandcountry.

ToinvestigatehowemployersmightrespondifapprenticepaywerebroughtintotheNMWframework.

Althoughapprenticeshipscanintheorybeembarkeduponbylearnersofanyage,ourfocus

inthisprojecthasbeenonyoungapprentices(thoseaged16to24).ThisreflectstherisingcompulsoryeducationandtrainingparticipationageinEnglandandtheconsiderable

increaseinyouthunemploymentgeneratedbythecurrentrecession.

Researchmethods

Thisisaqualitativestudywhichseekstounderstandthedifferentfactorsinvolvedin

complexdecision-making,bothbyyoungpeopleandemployers.GiventheremitoftheLow

PayCommission,thefocusofourresearchhasbeenindustrysectorsinwhichapprenticesare

knowntoberelativelylowpaid.

Thestudydrawsonthreesourcesoforiginaldata:

1.FocusgroupresearchwithcurrentandformerapprenticesWeconductedsevenfocusgroupsacrosstheUKforthisstudy.Thegroupsrangedin

sizefromseventonineparticipantsandwehad54participantsintotal.Table1below

explainshowthefocusgroupswereorganised.

Engineeringapprentices,inEnglandatleast,tendtoreceiverelativelyhighwagescompared

tootherapprentices(FongandPhelps2008),andweusethisgrouptoprovideacomparison

withthelow-payinggroups.ThegroupswereheldinJulyandAugust2009.

Table1:Descriptionoffocusgroups

Participants Sectors Numberofgroups Locations

Currentapprentices Amixoffivelow-paying Five Cardiff

sectors:earlyyears, Glasgow

hairdressing,retail,hospitality* Margate

andsocialcare Belfast

ManchesterYoungpeoplewholeftan Fivelow-payingsectors One Manchester

apprenticeshipwithout asabove

completingit(earlyleavers)

Currentapprentices Engineering One Newcastle

*AlthoughstatisticsforEnglandshowthathospitalityapprenticesarenotparticularlylowpaid,thesectorasawholeislow-

payingandsowerefertoitinthisreportasalow-payingsector.


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2.Surveyofyoungpeople

Tocomplementourfocusgroupresearch,wecarriedoutasurveyofyoungpeopleinfour

categories:

Currentapprentices

Formerapprentices

Youngpeoplewhohadleftanapprenticeshipwithoutcompletingit

Youngpeoplewhohadseriouslyconsidereddoinganapprenticeshipbutfinallydecidedagainstit.

ThesurveywasavailableonlineandinhardcopyanditranfromlateJulytomid-September

2009.Thesurveywasdesignedtocomplementthefocusgroupresearch,ratherthan

generatenewquantitativedata,andsowedidnotuseasamplingframe.Thismeantthat

someoftheresponseswereskewed,forexampletowardsparticularlocations(Northern

Ireland)andparticularsectors(businessadministrationandconstruction).Althoughthe

surveywasdisseminatedwidely,alimitednumberofresponseswerereceivedfromthekey

low-payingsectors.

ForEngland,wereceivedalargenumberofresponsesfromapprenticesinbusiness

administration(morethan200).Whenweexcludetheseresponses,wehave160responses

acrossabroadrangeofsectorsinEngland,andweusethisdatainthereportwhere

appropriate.Whenwerefertothesurveydatainthisreport,weareusingthedatasetthat

excludesresponsesfromapprenticesinbusinessadministrationunlessotherwisestated.We

receivedareasonablenumberofresponses(morethan20)fromapprenticesinthefollowing

specificsectors,andrefertothesefindingswhererelevant:businessadministration,

construction,earlyyears,hairdressing,andhealthandsocialcare.Wereceivedaverysmall

numberofresponsesfromapprenticesinothersectorsandthereforedonotdrawanyconclusionsaboutpayinthesespecificsectors.

Wereceivedaverysmallnumberofresponses(fewerthan10)fromapprenticesinWalesand

Scotland,andsothesearenotincludedinouranalysis.Alargenumberofresponseswere

receivedfromapprenticesinNorthernIreland.However,theseresponsesweredominatedby

apprenticesinconstructionandthemotorindustryandbecausethesesectorsarenotthe

primaryfocusofthisresearch,wehavenotincludedtheseresultsinourreport.

Wealsoreceivedonlyasmallnumberofresponsesfromformerapprenticesandyoung

peoplewhoconsideredbutdidnotdoanapprenticeship,andsotheseresultsarenot

representedinthereport.

3.Interviews

Wecarriedout22interviewsasfollows:

Employersinlow-payingsectorswhoregularlyemployedapprentices12interviews

Trainingproviders5interviews

Careersadvisers5interviews

TheinterviewswereconductedbytelephoneinAugustandSeptember2009.

Researchtiming

OurresearchwasconductedbetweenJulyandSeptember2009,whentheUKwasexperiencingwhatmanyexpertsbelievewastheworstrecessionsincethe1930s.

Unemployment,particularlyamongyoungpeople,increaseddramaticallyasaresultofthe


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recessionandtheeconomicsituationhasreceivedwidespreadmediacoverage.Itisvery

likelythattheeffectsoftherecessionhadanimpactontheresponsesofmanyinvolvedin

ourresearch.Inthereport,wetrytorefertothiswhereitseemsrelevant.

Researchlimitations

Thefindingspresentedinthisreportarenecessarilyinfluencedbythespecificpeoplewe

spoketoaspartofourresearch.Inparticular,itisimportanttonotethattheprojectwasnot

designedtoincludethefollowinggroupsinthefocusgroupsorinterviews:

Youngpeoplenotdoingapprenticeships:Thisincludesboththosewhoenteredfull-timeeducationandthoseinajobwithouttraining,someofwhommayhave

consideredapprenticeships.However,wedidspeaktoyoungpeoplewhohadleftan

apprenticeshipearly.

Employerswhodonotofferapprenticeships:Includingthosewhowouldliketobutfeelunabletoforsomereason;employerswhousedtoemployapprenticesbutstopped;

andemployerswhohaveneverconsideredemployingapprentices.

Inbothcases,thepeopleweincludedinourresearchmayhaveverydifferentexperiences

andattitudestowardsapprenticeshippaycomparedwiththosewedidnotspeakto.Thereis

alsotheusualproblemofself-selectionwhichexistswithanyqualitativeorsurveyresearch,

meaningthatsomepeoplewithparticularexperiencesmayhavedecidednottoparticipate

inourresearch.

Structureofthereport

Thenextthreechaptersfocusonourresearchwithcurrentandformerapprentices,drawing

onthefocusgroupsandsurvey:

Chapter2considerstheroleofpayinyoungpeoplesdecisionstostartanapprenticeship

Chapter3looksattheroleofpayinyoungpeoplesdecisionstocompleteanapprenticeship

Chapter4examinesyoungpeoplesperspectivesonaminimumwageforapprentices.

Thereportthentakesthefollowingstructure:

Chapter5considersemployersviewsonapprenticepayandtheirreactiontoincludingapprenticeshippayintheNMWframework

Chapter6setsoutthefindingsfromourinterviewswithtrainingprovidersabouttheirviewsonapprenticepay

Chapter7considerstheviewsofcareersadvisersandyouthcharities

Chapter8setsoutourconclusionsandthepolicyimplications.


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Inthischapter,weinvestigatethefactorsthatinfluenceyoungpeoplesdecisionstostartan

apprenticeship.Ouranalysisisbasedonthefocusgroupresearchwecarriedout,

complementedbydatafromoursurveyofyoungpeoplewhereappropriate.

Webeginbybrieflydescribingthekeycharacteristicsofthefocusgroupparticipants,and

comparingthiswithnationaldataonapprenticeswhereavailable.Wethenconsideryoung

peoplesmotivationsfordoinganapprenticeship,lookingattheroleofpayrelativetoa

rangeofotherfactors1.

Descriptionoffocusgroupparticipants

Westartbybrieflyoutliningthekeycharacteristicsofthe54youngpeoplewhoparticipated

inthefocusgroupresearch.

Sector

Participantsweredrawnfromthefollowingfivelow-payingsectorsandonehigherpaying

sector:

Earlyyears(childcare):9participants

Hairdressing:17participants

Retail:10participants

Hospitality:9participants

Socialcare:2participants

Engineering(higherpaying):7participants

Thisreflectstheprovisionofapprenticeshipsinlow-payingsectorsacrosstheUK,particularlythelargenumberofapprenticeshipsinhairdressingandearlyyearscare.

Age

Participantswereagedbetween16and24,exceptoneparticipantwhowas26.Justovera

thirdofparticipants(19)wereaged16to18,withjustundertwothirds(34)inthe19to24

agegroup.Theparticipantsinourfocusgroupswereslightlyolderonaveragethanthe

overallapprenticepopulation,atleastinEngland(FongandPhelps2008).Apprenticesin

earlyyears,engineeringandhospitalityweremorelikelytobeinthe1924agegroup,

whereashairdressingandretailapprenticesweremoremixedintermsofage.

LevelJustundertwothirdsofparticipantswerestudyingonaLevel2apprenticeship,andjust

overathirdwereonaLevel3course.Apprenticesinearlyyearsandengineeringweremore

likelytobeonaLevel3course,andhairdressingapprenticesweremainlydoingLevel2

apprenticeships.

Gender

Twothirdsofourparticipants(36outof54)werefemale.InEnglandandWales,aroundhalf

ofallapprenticesaremale,risingtoovertwo-thirdsinScotlandandNorthernIreland(LPC

2009).Theapparentover-representationoffemaleapprenticesinourresearchreflectsour

focusonlow-payingsectors,whereapprenticesaremorelikelytobefemale,asTable2

showsforEngland.

2.Youngpeoplesreasonsforstartinganapprenticeship

1.Unlessotherwisestated,ouranalysisrelatestoallourfocusgroupparticipants,includingtheearlyleaversandapprenticesworkinginthehigherpayingsector(engineering).


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Allthefemaleapprenticesinthegroupswereworkinginoneofthefivelow-payingsectors

andalltheengineeringapprenticeswespoketoweremale.

Ethnicity

Peoplefromanethnicminoritybackgroundappeartobeunder-representedin

apprenticeshipsinEngland,althoughnotinScotlandandNorthernIreland(LPC2009).Fifty

ofthe54focusgroupparticipantswerewhite,withtheremainingfouridentifying

themselvesashavingamixedethnicbackground.

Disability

Thevastmajority(52)ofourparticipantsdidnotregardthemselvesashavingadisabilityor

seriouslong-termhealthcondition.Onlytworespondentsreportedhavingadisabilityof

somekind.

Routesintoapprenticeships

Focusgroupparticipantshadstartedapprenticeshipsfromdiversebackgrounds,including:

Alreadyinwork:Thelargestgroupofapprenticesinourstudy(justover40percent)begantheircourseafterbeinginworkforsometime.Themajorityofthisgrouphad

beenworkingwiththesameemployerwithwhomtheyweredoingtheirapprenticeship.

Asmallernumberhadmovedintotheapprenticeshipfromacompletelydifferent

industry,orfromadifferentemployerinthesameindustry.Apprenticesinhospitality

andretailweremorelikelytohavebeenworkingbeforetheystartedtheircourse,

althoughasmallnumberofapprenticesinhairdressingandearlyyearshadtakena

similarroute.

Studyingatschoolorcollege:Justunderathirdofparticipantshadbeenstudyingatschoolorcollegeimmediatelybeforestartingtheirapprenticeship.Manyhadastrong

preferenceforthesectortheychosetotraininandhadmadeanactivechoicetoembarkonanapprenticeshipintheirparticularoccupation.Engineeringapprentices

weremorelikelytohavecomestraightfromschool,asweresomeapprenticesin

hairdressingandearlyyears.

Notinemployment,educationortraining:Justunderafifthofparticipants(nineintotal)hadnotbeeninemployment,educationortrainingbeforebeginningtheir

apprenticeship.Somehadbeenlookingforwork;othershadbeentravelling;othershad

beencaringforchildren.Participantsintheearlyleaversgroupweremorelikelytobein

thiscategory.

Leavinguniversityorcollege: Arelativelysmallnumberofparticipants(seven)hadpreviouslybeenstudyingatanFEcollegeoruniversityandhadlefttheircourseearly

beforestartingtheirapprenticeship.

Inoursurveyof160currentapprenticesinEngland,alargerproportionofrespondents

startedtheirapprenticeshipstraightfromschoolandfewerwereworkingimmediatelybefore:

Table2:Proportionofapprenticeshipstartsmadebywomen,England2006/07

Framework Proportionofapprenticeshipstartsbywomen(%)

Earlyyears 97.1

Hairdressing 91.7

Socialcare 89.7

Retail 66.4

Hospitality 50.6

Engineering 2.6

Source:TUC(2008)


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Alreadyinwork:23percentofsurveyrespondentshadbeenworkingimmediatelybeforestartingtheirapprenticeship,athirdwiththesameemployerandtwothirdswith

adifferentemployer.

Studyingatschoolorcollege: 57percentofrespondentshadbeenatschoolorcollegeimmediatelybeforetheystartedtheirapprenticeship,althoughthiscouldincludepeoplewhohadleftacollegecourseearlytostartanapprenticeship.

Notinemployment,educationortraining: 13percenthadbeenoutofworkbeforestartingtheirapprenticeship,aslightlysmallerproportionthaninthefocusgroups.

Doinganapprenticeshipatalowerlevel: Unlikeourfocusgroupparticipants,asmallnumberofpeoplewhocompletedoursurvey6percenthadbeendoingan

apprenticeshipatalowerlevelbeforestartingtheircurrentapprenticeship.

Learningaboutapprenticeships

Therearearangeofmethodsforaccessinginformationaboutapprenticeships,including

teachers,careersadvisers,youthcharities,employers,familyandfriends.Apprenticestakingpartinthefocusgroupshadfoundoutaboutapprenticeshipsthroughmostofthese

avenues:

Employerortrainingprovider: Nearlyhalfofallparticipantshadfirstheardaboutapprenticeshipsfromtheiremployeroratrainingproviderwhoapproachedtheir

employer.Thiswasparticularlythecaseforthosewhohadstartedworkingstraight

fromschool,andforapprenticesinretailandhospitality.

Familyandfriends:Aboutaquarterofparticipantswerefirstintroducedtoapprenticeshipsthroughfamilyorfriends,andthiswasparticularlytrueofapprentices

inhairdressingandengineering.

Schoolorcollege: Slightlyfewerparticipants,aboutafifth,hadfirstcomeacrossapprenticeshipswhileinschoolorcollege,usuallybytalkingtoacareersadviser.Thiswasmorecommonforapprenticeswhohadstartedtheircoursestraightfromschool

andforapprenticesinhairdressingandearlyyears.

Careersadviser:Asmallnumber(five)hadbeenintroducedtoapprenticeshipsthroughtheConnexionsserviceoutsideofaschoolcontextorthroughajobcentre.Thistended

toapplytoapprenticeswhowereoutofworkbeforetheystartedtheircourse.

Decidingtodoanapprenticeship:influencesandmotivations

Inthissection,weconsiderthedifferentinfluencesonthedecisionoffocusgroup

participantstostartanapprenticeship.Ouraimistounderstandtheroleofpayinthe

decision-makingprocessanditsimportancerelativetootherfactors.

Familyandfriends

Theprofessionsandopinionsoffamilyandfriendshadastrongimpactonparticipants.

Someyoungpeoplereportedhavingbeeninfluencedbyfamilymemberswhowerealready

workinginthesectorinwhichtheychosetodoanapprenticeship.Theinfluenceoffamily

backgroundwasparticularlystrongforapprenticesinhairdressingandengineering.

Mycousin,shehasherownsalonsinceIwaslittleandIsaidIwanttobelike

you.ThenshetoldmeaboutitwhenIgotabitolderandshestheonethat

pushedmetowardsitbecausesheknewthatIwantedtodothat.

(Hairdressingapprentice,female,17,Margate)

Foranumberofengineeringapprenticesinparticular,thefamilyconnectiontotheirchosen

occupationwentbackthroughmorethanonegeneration,andwasclearlyastronginfluence

ontheirchoices.


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Mydaddidhisapprenticeshipwhenhewasmyageaswellsohewas

quitepleasedMygranddadusedtoworkdownthedocks,sohe[the

participantsfather]donehisapprenticeshipdownthere.Itwashisdadthat

toldhimtodoit.(Engineeringapprentice,male,20,Newcastle)

Forasmallernumberofapprentices,theirdecisiontodoanapprenticeshipwasalsoinfluencedbytheirfriends.

MymatewassayinghowheenjoyeditandtoldusaboutitandIlikedthe

soundofitHedfinishedandhesagoodmateofminesohessteeredus

inthatdirection.(Engineeringapprentice,male,21,Newcastle)

Beyondapprenticeswhoweredirectlyfollowingfamilymembersintoaparticularoccupation,

someparticipantsparentswerealsosupportive.

Mydadthinksitsagoodideatohaveallthehealthandsafetyandthe

equality[training]becauseyouregoingtoneedthatinanyindustry.(Retail

apprentice,female,21,Belfast)

However,anumberofapprenticesalsotalkedabouthavingtobattleagainstmorenegative

perceptionsofapprenticeshipsamongfamilymembers,particularlywhenparentsfavoured

moretraditionalacademicroutes.

Mymum,shesaprofessionalandwantedmetogetadegree...Shehaddone

itallsowantedmetoaswell.Ithoughtitwasstupidtohaveadegreejustfor

thesakeofhavingadegreebutshedidntreallyknowmuchabout

apprenticeshipsanyway.(Hairdressingapprentice,female,21,Glasgow)

Careersadvisersandteachers

Asdiscussedabove,onlyarelativelysmallproportionofyoungpeopleinourfocusgroups

hadbeenintroducedtoapprenticeshipsthroughcareersadviserswhileatschool.Participantsinthisgrouphadgenerallyhadpositiveexperiences.

However,formanyparticipants,apprenticeshipshadnotbeenmentionedbycareersadvisers

atall.

Mycareersadviserwantedmetogotocollege.EverythingIwantedtodoshe

toldmetodoincollegeNeversaidnothingaboutapprenticeships.

(Hairdressingapprentice,male,17,Cardiff)

Therewasageneralfeelingamongmostparticipantsthatcareersadvisersworkinginschools

prioritisedadviceabouttraditionaleducationaloptions,usuallyA-levels(orScottishHighers),

followedbyuniversity.Thisroutewasoftenpresentedastheonlysuitableoption,

particularlyforyoungpeoplewhoweredeemedtobeacademicorofabove-averageability.

Thatsallour[careersadvisersandteachers]talkedabout.Juststayon,do

yourA-levels,gotouniversity,thatswhatyouhadtodoinourschool,that

wasjustwhatyouwereexpectedtodo.Theydidntreallygiveyouanyother

options.(Earlyyearsapprentice,female,23,Belfast)

Participantssaidthatapprenticeshipswerepresentedbycareersadvisersandteachersas

beingprimarilyanoptionforstudentsoflowerability.Evensomeparticipantswhohadhad

apprenticeshipsrecommendedtothembyacareersadviserfeltthiswasbecausetheir

academicperformancehadbeenpoor.

MylastcareersinterviewshewastellingmeIshoulddomyapprenticeshipbecausemypredictedgradeswererubbish.(Hairdressingapprentice,female,

17,Margate)


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Atotalofsevenapprenticeshadstartedacourseatcollegeoruniversitybutleftwithout

completingitbecausetheyfeltthecoursewasunsuitable.Theytendedtofeelthattheyhad

beenpressuredintoacademicoptionsbycareersadvisers,teachersandparents,and

regrettedtheadditionaltimetheyhadspentpursuingtheseoptionsbeforestartingtheir

apprenticeship.IwenttosixthformandthenIgotpushedintouni.IwentforayearandI

didntlikeitmuchMyheadofyear,shewasreallypushywithallofusand

allofushaveleftnowIdontlikeheranymore,shewastedayearofmy

life.(Retailapprentice,male,20,Margate)

TherewerealsoasmallnumberofparticipantswhohadcompletedA-levelsoruniversity

degreesbutnowregrettedthischoiceandwouldhavepreferredtohavestartedan

apprenticeshipearlier.Someoftheblamewaslaidoninappropriateadvicefromcareers

advisers.

She[careersadviser]waslike,no,doyourA-levels,gotouniandthengoon.

ButithasntbenefitedmenowIminretailfornoapparentreason.IdidallthatworkfornothingandIfeelthatifIhadbeenencouragedtodoan

apprenticeshipIwouldhavebeeninabetterplacerightnow.(Retail


Developingacareerandlearningatrade

Oneofthemostcommonreasonsfordoinganapprenticeshipamongourparticipantswas

thattheyfeltitwouldprovidethemwithatradethattheycanrelyonthroughouttheirlives.

Apprenticesinhairdressing,engineeringandhospitality(thosetrainingtobechefs)were

mostlikelytotalkabouttheiroccupationasatradeandasprovidingacareeroverthelong

term.

Anumberofparticipantsinhairdressingandengineeringinparticularmentionedthesecurity

ofhavingaqualificationinaskilledoccupation.Therecessionmadethisevenmore

importanttothem,buttheyalsotalkedmorebroadlyaboutthesecurityitoffers.

Itsalwayssomethingtofallbackon.Ifyoutrysomethingdifferent,youve

alwaysgotthattogobackto.Itslikeinsurancereallynoonecantakethat

qualificationoffyou.(Engineeringapprentice,male,20,Newcastle)

Participantswereparticularlypositiveabouttheclearcareerpathofferedbyapprenticeships

comparedtotheirperceptionsofmoreacademicqualifications.Therewaswidespread

scepticismamongtheyoungpeoplewespoketoabouttheemploymentbenefitsof

academicqualifications.

EverybodywhosdonetheirA-levels,donetheiruniversity,andtheyvedone

theirdegreestheygoandtheyworkinMarksandSpencers[or]they

haventgotajob.(Hospitalityapprentice,male,26,Belfast)

Inaminorityofcases,theopportunitiesforcareerprogressioncreatedbyapprenticeships

werespecificallylinkedtothefactthatinparticularorganisationsoroccupationsacertain

levelofqualificationwasrequiredtodohigher-payingjobs.Thiswasparticularlythecasefor

thetwosocialcareapprenticesandwithaminorityofretailapprentices.

Inothercases,therewasamoregeneralconcernaboutmovingupandtheapprenticeship

wasseenasimportantinthiscontext.

SinceIvebeendoinganNVQ,themanagersbeenthinkingaboutmaking

measupervisorandthenIcanmoveupandmaybegetintobeingaregional

managerorevenareamanager.Soitgivesyouloadsofoptionstomoveup.

(Retailapprentice,female,18,Manchester)


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Moreusually,however,theconceptofatradeorlong-termcareerwaslessprevalentamong

retailapprentices,partlybecauseofthemoregenericnatureofthework.Themain

attractionforthisgroupofapprenticeswastheabilitytogetaqualificationwhile

maintainingthesameearnings.Thisalsoperhapsreflectsthefactthatmostretail

apprenticeswererecruitedontothecourseviatheiremployerratherthanmakinganactivedecisiontostartanapprenticeship.Therewassomesuggestionthattheadditionalwork

involvedinaretailapprenticeshipwasnotparticularlydemanding,whichmadeitmore

attractive.

Workexperience

Aswellasthekeyissueofgainingatradeorcareerforlife,participantshighlightedtheir

desiretogainworkexperienceasoneofthekeymotivationsfordoinganapprenticeship.In

particular,participantscontrastedthepracticallearninggainedthroughanapprenticeship

withthetrainingofferedinFEcolleges.Thiswasparticularlyimportantinhairdressingand

earlyyears,wherehands-onexperiencewasfelttobevitaltotheirfutureemployability.

Itsmorebeneficialifyougointoanapprenticeshipbecauseifyougoto

collegeyoullhavetoretrainagain.Youvegotnoexperience,handson

experienceYouwontgettakenoninasalonifyougointocollege,youre

notuptostandard.(Hairdressingapprentice,male,17,Cardiff)

Participantsalsothoughtthatthekindofworktheydidintheworkplacewasverydifferent,

andoftenmoreadvancedandmorerelevanttoemployers,thantheexperiencestheywould

haveincollege.

WhenIwentonthejob,itwastotallydifferenttowhatwedidincollege.In

college,wedidwelding,bench-fittingandsheet-metalwork.ThenwhenI

wentintoCNCmilling,itsprogrammingandmachine-settingandthingslike

that.Itwasjustcompletelydifferent.(Engineeringapprentice,male,19,Newcastle)

Thesewerepointsraisedstronglybytheemployerswespoketo,particularlyinthe

hairdressingsector,andwediscussthisinmoredetailinChapter5.

Analternativetofull-timeeducation

Asmentionedaboveanumberofparticipantshadstartedanapprenticeshipafterleavinga

collegeoruniversitycourseearlybecausetheydidnotwanttopursueatraditionalacademic

route.Thiswasalsoaclearmotivationforanumberofotherapprentices.

IjustdidntwanttogotouniversityandIthoughtthat[anapprenticeship]

wasagood,sensibleoption,insteadofjustleavingschoolandgettingajobandstayingonthesamewagetherestofyourlife.(Engineeringapprentice,

male,21,Newcastle)

Participantswereclearthattheyremainedinterestedinlearning,butthataschoolorcollege

settingwasnotappropriateforthem.

Iwantedtolearn,butthenyourenotstuckatcollegeallday.IfIwentall

week[tocollege],IknowIwouldntgoifitwasallweekbecauseIdjustget

bored.(Hairdressingapprentice,female,17,Margate)

Pay

Althoughmostparticipantshadstrongfeelingsabouttheirpayoncetheystartedworking

(exploredinthenextsection),payseemedtobelessimportantthansomeoftheotherfactorsdiscussedaboveininfluencingyoungpeopletostartanapprenticeship.


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Aminorityofparticipantswereclearlymotivatedtodoanapprenticeshipprimarilybecause

ofthewage.

Thatwasthemainreason[pay].OnceIstartedit,Irealisedthatthatwasthe

betterchoiceanyway,becauseyouweregettingmoreexperienceandstuff.

Butpaywasthemainreason.(Earlyyearsapprentice,female,21,Glasgow)

Ofthosewhoweremotivatedbythepay,sometalkedaboutwantingtohaveearnings

straightawayratherthanwaitinguntiltheyhadachievedacademicqualifications.

Whereyoungpeoplehadstartedworkingbeforebeginningtheirapprenticeship,itwas

importantforthemtobeabletocontinueearningawagewhileworkingtowardsa

qualification.

Theplanformewastoworkforayearandthengobacktocollege.But

whenIfoundoutyoucangetqualificationsatthesametimeasdoingthe

job,itwouldbehardtogiveupthewagenow.(Retailapprentice,female,18,

Manchester)

Asmallnumberofparticipantsalsosaidthatthelowwageassociatedwithapprenticeships

hadinitiallyputthemoffapplyingforanapprenticeshipuntilotherfactorshadchanged

theirminds.

Ithinkitwasthemoneythatputmeoffatthestart.Iwasonly16whenI

leftschoolandIwasinacallcentrethatwasgivingme400everytwoweeks

andnowIm21andonlygetting120everytwoweeks.(Hairdressing


However,forthemajorityofparticipants,althoughthepresenceofawagewasimportant,

thelevelofapprenticepaywasasecondaryissuewhentheyweremakingthedecisionto

startanapprenticeship.Therewasoneimportantcaveattothis:mostparticipantsfeltthatapprenticepayhadtobeconsiderablyhigherthantheEducationalMaintenanceAllowance

(EMA)2,whichwastheirmainpointofcomparison.

IjustwantedthemoneyassoonasIleftschool.Atsixthformyoudidntget

paidunlessyouwereontheEMAandthatwasonly30aweek.

(Engineeringapprentice,male,20,Newcastle)

Participantsmadetwoothercomparisonswhendiscussingtheirwages:theincomesoffull-

timeuniversitystudents;andwagesforjobswithouttraining.Mostparticipants,but

particularlythoseinengineering,feltthattheirpaycomparedveryfavourablytotheincome

offull-timestudents,whichaddedafurthermotivation.

Youseeyourmatesthatsatcollegeanduniandnotabletogooutonthe

weekend...Theyrelike,ohmam,canIborrowsomemoneybutyouvegot

yourownmoney.(Engineeringapprentice,male,20,Newcastle)

Themajorityofparticipantsrecognisedthattheapprenticewagewassignificantlylowerthan

thewagetheycouldearninajobwithouttraining,butmostcurrentapprenticeswerewilling

totoleratethisinreturnforthelong-termbenefits.Wereturntothispointinmoredetailin

thenextchapter.

Anumberofparticipantswereunclearabouthowmuchtheywouldbeearningbeforethey

startedtheirapprenticeship,whichfurthersuggeststhatthelevelofapprenticesisnota

majorinfluenceondecision-making.

2.TheEMAisameans-testedallowanceworthupto30andpaidtoyoungpeopleaged16to18in

full-timeeducation.


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Irememberatmyinterview,Iaskedaweebitbutyoudontreallywanttoask

aboutpayandthingsIdontthinktheyexplainedthatuntilIactually

started.(Earlyyearsapprentice,female,21,Glasgow)

Youngerapprenticesstartingstraightfromschool,forwhomtheapprenticewagewouldbe

theirfirstsourceofincome,hadalsonotbeenveryconcernedaboutthelevelofpaywhentheyfirststartedtheirapprenticeship.

Surveyfindings

OursurveyresultsforcurrentapprenticesinEnglandconfirmsomeofthefindingsfromour

focusgroupsaboutyoungpeoplesmotivationsforstartingapprenticeships,althoughthere

aresomeimportantdifferences.Figure1showsthereasonswhyrespondentsstartedan

apprenticeship:

Thetwomostcommonreasonsthatrespondentsreportedforstartinganapprenticeshipwerehavinganinterestinthesubject(69percent)andthedesireto

gainaqualification(66percent).

Theopportunitytolearnaskillandgainworkexperiencewerealsoveryimportanttorespondents,at51and49percentrespectively.Tosomeextent,theseresponsesdiffer

fromthoseofourfocusgroupparticipants,whoweremorelikelytotalkabout

apprenticeshipsintermsoflearningatradeorskill,andlesslikelytotalkexplicitly

aboutgainingaqualification,althoughhavingaformalqualificationwasclearlylinked

totheideaofhavingatradeforlife.

Factorsaroundearningawagewereslightlylessimportantinoursurvey,althoughstillsignificantforanumberofrespondents.Theopportunitytobepaidforlearningwas

importantforjustoverathirdofrespondents(36percent).Justunderathird(28per

cent)alsostartedanapprenticeshipinpartbecausetheyneededtoearnmoney.This

differsslightlyfromourfocusgroupparticipantswhoveryrarelydiscussedaneedtoearnawage.

Justunderaquarter(23percent)hadhadanapprenticeshiprecommendedtothembyaparent,friend,teacherorcareersadviser.

0% 20% 40% 60% 80%

Friends were doing them

Didn't like school

Didn't want to go to university

Recommended by someone else

Needed to earn money

Would be paid to train

To gain work experience

Wanted to learn a skill

To gain a qualification

Interested in subject

Figure1.Reasons

forstartingan

apprenticeship

Source:Surveyof

currentapprenticesin

England(excludingapprenticesin

businessadmin.),

summer2009

Totalrespondents=

160;multiplechoice

questionsoresponses

donotsumto100%


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Summaryandconclusions

Formanyparticipants,thedecisiontostartanapprenticeshipwasdirectlyinfluencedtosomeextentbyfamilybackgroundandadvicefromcareersadvisersandteachers.

Hairdressingandengineeringapprenticesweremorelikelytobeinfluencedbythe

occupationandviewsoftheirparents.Insomecases,participantshadbeendissuadedordiscouragedfromdoingan

apprenticeshipbyparentsorcareersadvisers.Thiscouldmeanthattherearesome

youngpeoplewhowouldliketodoanapprenticeshipbutarenotgiventhe

opportunityto,andthisissupportedbyotherresearch(SkillsCommission2009).

Participantsalsohadtheirownreasonsforwantingtodoanapprenticeship,someofwhichwerebasedoninformationfromfamily,friends,careersadvisersandteachers.

Themainreasonswere:wantingtobequalifiedinaparticulartradeorskill,andthe

longertermcareerbenefitsofthis;theopportunitytogainworkexperience;the

chancetocontinuelearningbutoutsideaformaleducationalenvironment;andthe

abilitytoearnawage.

Hairdressingandengineeringapprenticesweremorelikelytotalkabouttheirapprenticeshipintermsofatradeandwerealsomorelikelytobeinfluencedbythe

occupationandviewsoftheirparents.Retailandhospitalityapprenticesweremore

likelytobemotivatedbytheabilitytomaintaintheirearningswhilegaininga

qualification.

Althoughpaywasclearlyamotivatingfactorformanyoftheparticipants,itwasrarelytheonlyormainmotivationfordoinganapprenticeship.Theotherfactorslistedabove

appearedtobemoreimportantformostparticipants,althoughasmallnumberwere

motivatedprimarilybythewageattachedtoapprenticeships.

Wherepaywasimportant,itwasthepresenceofawagethatwasmoreimportantthanthelevel ofpay,aslongasthewagewasconsideredtobesignificantlyhigherthantheEMA.Thecomparisonwithearningsinajobwithouttrainingwasnotconsideredby

mostparticipantstobeparticularlyrelevantbecauseparticipantsunderstoodthelonger

termtrade-offbetweenlowwagesandtrainingnowandhigherearningsinthefuture.


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Wenowconsiderparticipantsexperiencesofapprenticeships,includingthegroupofearly

leavers.Westartbyoutliningtheearningsofapprenticesinthefocusgroups,before

discussingtheirviewsontheirpay,thequalityoftraining,andtherelationshipbetweenthetwo.Welookinparticularattheroleofpayininfluencingyoungpeoplesdecisionto

completeanapprenticeship.

Apprenticepay

Amongourfocusgroupparticipants,pay3 variedbysectorandalsowithinsector.

Hairdressing

Exceptintwoinstances,wherehairdressingapprenticeswerebeingpaidbetween250and

300aweek,allhairdresserswerereceivingweeklyearningsofbetween80and120.In

England,themajoritywereonthe80(95from1August)LSC/NASweeklyrate.Outside

England,wageswerenotnecessarilylower,althoughintwocasesinBelfast,hairdressingapprenticeswerereceiving60aweek.Hairdressingapprenticeswerethelowestpaidamong

ourfocusgroupparticipants.Thisisinlinewiththefindingsfromthe2007surveybythe

DepartmentforInnovation,UniversitiesandSkills(DIUS)ofapprenticepayinEngland,

wherehairdresserswerepaidanaverageof109aweek.

Wealsofoundtwoinstances,oneinBelfastandoneinCardiff,wherehairdressing

apprenticeswereapparentlynotreceivingthenationalminimumwagedespitebeingentitled

toit.Inbothcases,thishadoccurredwhentheapprenticehadturned19andhadbeen

doingthecourseformorethanayear,andsotheminimumwageexemptionsnolonger

applied4.

Earlyyears

Payintheearlyyearssectorvariedfromapproximately90aweektoatoprateof230a

week.TwoparticipantsinGlasgowwereearningapproximately90aweek,indicatingthat

theiremployersweremakinguseoftheminimumwageexemptions.Therestofthe

apprenticesinthissectorwereearningaroundtheminimumwage,andnonewereearning

verymuchabovetheadultminimumwage.Forcomparison,earlyyearsapprenticesin

Englandwereearning142onaverageaweekin2007(FongandPhelps2008).

Retail

Wagesinretailweresimilartoearlyyears,ifslightlyhigher,withtwopeopleontheLSC/NAS

minimumrateandtherestearningbetween190and260aweek.Mostretailapprentices

wereontheadultNMWrate,reflectingthefactthatthemajoritywerealreadyworkingwhen

theystartedtheirapprenticeship.FongandPhelps(2008)foundthattheaveragewagefor

retailapprenticesinEnglandin2007was168.

3.Youngpeoplesexperiencesofapprenticeships

3.Paydatafromfocusgroupparticipantswascollectedthroughaself-completedformwhereparticipantswereaskedtheirhourly,weekly,monthlyorannualwagegrossoftax.Participantswere

askedtousethetimeperiodtheypreferredbecauseitcanbedifficultforpeopletotranslatetheirpay

intoaweeklyamount.Whereparticipantsprovidedpayinformationinhourly,monthlyorannualterms,

wehaveestimatedanequivalentweeklyamount,assumingthatparticipantswereworkinga40hour

week.Thiswasareasonableassumptionbecausealmostalltheparticipantswhoprovidedpay

informationinthiswaywereworkingfull-timeandweredoingverylittleornooff-the-jobtraining.However,itdoesmeanthatwecanonlyprovideestimatesofgrossweeklyearnings.

4.Inbothcases,weadvisedthemtotalktotheiremployertoseekclarificationabouttheirwage

entitlementsandtocontacttheirtrainingproviderand/orHMRCiftheystillhadconcerns.


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Hospitality

Thelowestsinglewageamongourparticipantswasinhospitality.One16yearold

apprenticeinGlasgowwasearningapproximately46aweek.Thissectoralsohadthe

highestapprenticewages,withfourpeopleearningbetween260and270aweek.Two

hospitalityapprenticeswereontheLSC/NASminimumandafurthertwowereearning190,whichisequivalenttotheNMWdevelopmentratefor18to21yearolds.IntheDIUS

2007paysurvey,hospitalityapprenticeswereearninganaverageof187aweek(Fongand

Phelps2008).

Socialcare

Weonlyhadtwoparticipantsworkinginsocialcare,oneearning230aweekandtheother

280(thehighestwageinourfocusgroups).

Engineering

Earningsinengineeringwerenotparticularlyhigherthanintheothersectors,excluding

hairdressing.Wagesvariedfrom80aweekforanewstartertoamaximumof265aweek,withmostparticipantsearningbetween190and230.Mostengineeringapprentices

reportedstartingonlowwages,intheregionof80aweek,andreceivedwageincreases

afterthefirstsixor12months.In2007,engineeringapprenticesinEnglandhadaverage

weeklyearningsof189(FongandPhelps2008).

Surveyresponses

Figure2belowshowstheaverageweeklyearningsreportedbysurveyrespondentsin

England.Thechartshowstwoclustersofresponses,onearoundtheLSC/NASrateof80

(or95from1August)andonehigheruptheearningsdistributionbetween120and

299.Thissuggeststhat,broadly,amongourrespondentstherewasonegroupof

apprenticespaidaroundtheLSC/NASrateandanothergroupwhosepaywassubstantiallyabovethislevel.

Inthesurvey,apprenticepayinthreeofthesectorsforwhichwehavesufficientdata

businessadministration,constructionandearlyyearsfollowsaverysimilarpattern,with

peaksaroundtheLSC/NASrateandthe150to299level.Inhairdressing,andhealthand

socialcare,thepatternisofearningsskewedtowardstheLSC/NASrateandveryfew

respondentshadearningsabovethe95104bracket.

0%

5%

10%

15%

20%

25%30%

Less

than

49

50

-79

80

-94

95

-104

105

-11

9

120

-14

9

150

-19

9

200

-29

9

Moreth

an30

0

Gross weekly earnings

Proportion

ofresponde

nts

Figure2.Average

grossweekly

earningsreported

bysurvey

respondentsin

England

Source:Surveyof

currentapprenticesin

England(excluding

apprenticesin

businessadmin.),

summer2009

Totalrespondents=

144.Afurther16wereunwaged.Av.

weeklyearnings

beforetaxandNI.


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Youngpeoplesperspectivesoncurrentapprenticepay

Thevariationinpayamongfocusgroupparticipantsmeantthatarangeofopinionswere

voicedonthesubject,althoughmostcommentswereeithernegativeorneutral.

Anumberofparticipantsrecognisedthattheirearningswereverylowandfeltthattheir

wageswereinsufficienttoenablethemtoliveindependently.Manylivedwiththeirparents

orweresupportedbythewagesofpartners,althoughmanyoftheseparticipantsstillfelt

theirwageswereinadequate.

Ithinkitfeelslikeyouregettingliterallynothingbecauseonceyouvepaid

yourrentandyougettheessentialstuffthatyouthinkyouneed,itslike

youvegot100left[foramonth].Youcantbuynothingwiththatbecause

youknowyoullbeliterallyleftwithnothingfortherestofthemonth.

(Hairdressingapprentice,female,17,Margate)

Asmallnumberofparticipantshadasecondjobtosupplementtheirapprenticeearnings.

Anumberofparticipantsfeltthattheydidsimilarworktocolleagueswhowerenotdoinganytraining,whichmadethedifferenceintheirwagesseemunfair.Thisseemedtobea

particularprobleminearlyyearsandhairdressing.

Weretreatedasqualifiedstaff.Weareexpectedtodothesame.Weretotally

gettingpaidalotless.Itsfrustrating.(Earlyyearsapprentice,female,19,

Glasgow)

However,someparticipantsstatedquiteexplicitlythattheywerenotconcernedabouttheir

currentearnings,eventhoughtheyrecognisedtheirpaywasrelativelylow.

Idontreallycareaboutthepay.IknowIgetreallyrubbishpayforthehours

Ido.(Hairdressingapprentice,female,17,Margate)

SomeparticipantsalsoraisedconcernsabouttheEMAbecausetheyfeltitrepresenteda

wageforcollegestudentswhoarenotinemployment.

TheEMAannoysme.Afewofthemgetthe30aweekbutthentheirmum

givesthem20aweek,andtheycanjustspenditonbeer.Thats50aweek

fordoingnothingbutIhavetoworkfull-timeandstudyatthesametime.

(Hospitalityapprentice,male,18,Manchester)

However,despitegenerallynegativeviewsabouttheirwages,mostparticipantsrecognised

thetrade-offsinvolvedinundertakingapprenticeships.Inreturnforlowwagestostartwith,

mostparticipants(excludingtheearlyleavers)feltthattheywouldreceivetwokeybenefits

inreturn:regularandsignificantpayrisesovertheircareer;andhigherjobsatisfaction,both

nowandinthefuture.

Participantsfeltthattheirpaywaslikelytoincreaseregularlyandsignificantlyovertheir

workinglife.Thiswasoftencouchedintermsofacomparisonwithfriendswhowere

currentlyearninghigherwagesbutworkinginjobsthatwereperceivedtoofferfew

opportunitiesforincreasingwagesinfuture.

MatesIvegotthatworkinthecallcentresthatget900amonthandthenI

wasgetting220[atthebeginningoftheapprenticeship].Butthenyou

think,well,theyregoingtobestuckon900andthatsit.ThewaythatI

lookatitis,afterImout,itlljustkeepgoingupandupandupbecauseIcan

progressfurtherupandtheycantreallygomuchfurther.(Engineering

apprentice,male,20,Newcastle)

Participantsalsoreferredtoqualifiedcolleagueswhohadtakenthesamerouteandnowhad

muchhigherearnings.Thisgavethemasenseoftheirlikelycareertrajectoryandfuture

earnings.


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Whatgetsmethroughitisthattheyveallbeenthereanddoneitaswelland

theyrenowthetopstylist.Youknowthatinoneandahalfyears,twoyears

time,youregoingtobeintheirposition.(Hairdressingapprentice,female,

17,Margate)

Someparticipantspointedtothehigherearningsavailabletoqualifiedstaffasaclearincentivetofinishtheapprenticeship,regardlessoftheircurrentpay.

Itsanincentivetofinish,isntit?Yougeta[low]wageatthestartbutifyou

canstickthroughit,youknowthatbytheendofityouwontbeona[low]

wage.(Engineeringapprentice,male,20,Newcastle)

Participantsalsofelttheyhadtheopportunitytodoajobwhichisenjoyableandrewarding,

andagainthiswasoftendiscussedinrelationtothe(inferior)jobsatisfactionenjoyedby

friendsandpeers.

It[thepay]dontcomparetoworkingatTescobutthenalotofpeoplethatI

knowthatdoworkthere,theycomehomeandtheyllbesickoftheirjob

becausetheyreliterallystackingshelvesalldayorsittingatthecounter.

Whereasinourjobitllbewashuporsetthispersonsoyouneverknowwhat

youregoingtobedoing.Soitisworthitinthelongrunbecauseyoure

alwaysgoingtohavesomethingdifferenttodo.(Hairdressingapprentice,

female,17,Margate)

Therewasalsoastrongfeelingamonganumberofparticipants,particularlyinhairdressing

andengineering,thatthelevelofapprenticepaywasalmostirrelevantifthejobprovided

jobsatisfaction,andthathigherpaywouldonlyberequiredifjobsatisfactionwaslow.

Ithinkifyourehappyinajobthenitdoesntmatteraboutthemoneyreally.

Ifyouwereina[bad]jobwith[low]moneythenyoudwantmore,wouldnt

you?Ifyourehappygoingtoworkthenyouwouldntcare.(Hairdressingapprentice,female,17,Margate)

However,mostoftheparticipantswhotookthisapproachtotheirpaywereintheyounger

agegroup(1618)andwerebeingfinanciallysupportedbyparents.

Inourfocusgroups,participantsdidnotdiscusstheinteractionbetweenapprenticepayand

benefits,towhichthey,theirparentsortheirpartnersmayhavebeenentitled.Thiswasnot

raiseddirectlybyourfocusgroupdiscussionguideandwasnotbroughtupbyparticipants.

However,thismaybeanissuethatrequiresfurtherresearch.

Trainingquality

Trainingarrangementsforapprenticeshipsvarybysectorandemployer.Apprenticescanreceiveacombinationofon-the-jobandoff-the-jobtraining,whichissometimesorganised

asblocktrainingoveranumberofweeksatcollegeoratrainingcentre.Thereareno

specificrequirementsforapprenticestospendaminimumnumberofdaysdoingdifferent

kindsoftraining.

Theapprenticesinourfocusgroupswereeitherdoingamixofon-the-jobandoff-the-job

training(includingsomeblocktraining)orjuston-the-jobtraining.Thegeneralpatternof

trainingineachsectorwasasfollows:

Hairdressing:thevastmajoritydidonedayaweekoff-the-jobtraining.Asmallnumberdidhalfadayaweek.

Earlyyears:mostparticipantseitherdidnooff-the-jobtrainingoronedayamonth.

Socialcare:thetwosocialcareapprenticesdidnooff-the-jobtraining.


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Hospitality:trainingarrangementsvariedinthissectorwithsomeparticipantsdoingonedayaweekoff-the-jobtrainingandsomedoingnone.

Engineering:variedconsiderablydependingonthestageofapprenticeship.Someparticipantsdidonedayaweekatcollege,somedidnooff-the-jobtraining,andsome

didblocktraining.

Wefoundthatthequalityoftraining,asjudgedbyparticipants,variedconsiderablyacross

andwithinsectors.Therealsoseemedtobesomerelationshipbetweentrainingqualityand

pay,withapprenticesonthelowestwagesalsooftenreportingthepoorestqualitytraining.

Thequalityoftraininginengineeringwasgenerallyconsideredtobeverygood,reflecting

previousstudiesoftrainingqualityinapprenticeships(HughesandMonteiro2005,

Steedman2008).Engineeringapprenticeshipstendtolastmuchlongerthanapprenticeships

inthelow-payingsectors,andmostoftheparticipantshadcompletedlengthyperiodsof

college-basedtrainingbeforeenteringtheworkplaceordidregularperiodsofblock

training.Industrieslikeengineeringhavemoreofahistoryoftrainingapprenticesand

participantsgenerallyfeltsupportedbycolleaguesandmanagersintheirtraining.Thiswas

alsothecaseinhairdressing,wherethereisahistoryofemployingtraineesorjuniors,evenif

theyhavenotbeenreferredtoasapprenticesinthepast,althoughthequalityoftrainingin

thissectorwasmuchmorevariable.

Insomeoftheotherlow-payingsectors,particularlyretailandhospitality,formaltraining

throughapprenticeshipsisarelativelynewconceptanditwasclearthatsomeemployers

weremuchlesskeentodevotetimetotrainingorsupportingapprentices.Thishadan

impactonthequalityoftrainingapprenticesreceivedandmeantthattraininginthelow-

payingsectorswasmuchmorevariable.

Althoughmanyhairdressingapprenticesfeltthatthequalityoftrainingtheyreceivedwasverygood,anumberfeltthatthetrainingwasminimalandtheywereoftenusedasacheap

waytodomenialtasks.

Imconstantlycleaning.AllIdoiscleanandwashhairforfourdaysaweek

for60.(Hairdressingapprentice,female,21,Belfast)

Anumberofparticipantsinretailandhospitalityalsofeltthattheywerereceivingvery

minimaltrainingandwereessentiallycompletingtheapprenticeshiptocertifypre-existing

skillsandknowledge.

Iwouldntsayitstraining.Itsaboutgettingaqualificationinthejobthat

Imdoing.Itsaboutputtingitintoaportfolio,really,togetthequalification

attheend.(Hospitalityapprentice,female,24,Manchester)

Despitethevariationintrainingquality,participantsagreedthattherelationshipwith

assessorswasviewedasbeingparticularlyimportantandparticipantscomparedassessors

favourablywithteachers.Assessorscanactasmentors,sharingtheirknowledge,negotiating

workloadandtrainingqualitywithemployersandtestingapprenticesonkeyskills.

Itsgotafriendlybasistoit.Theyrejustseeingifeverythingsalright,if

youreenjoyingworkItsnotlikeateachercomingin,soitsabetterway

toactuallytellthemhoweverythingsgoing.(Engineeringapprentice,male,

21,Newcastle)

However,someparticipantsquestionedtheroleofassessorsandthelevelofsupportthey

provided.Thiswasmorecommoninretail,hospitalityandhairdressingandfedintosomeof

theproblemsthatparticipantsreportedaboutqualityoftraining.


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TheydontseemtodoagreatdealIaskmybossifIneedhelpYouask

them,whatshouldIdoaboutthisandtheysay,oh,youshouldasksomeone

atworkbecauseeverywhereisdifferent,soyoujusthavetoasksomeoneat

workratherthanrelyontheassessor.(Hospitalityapprentice,female,24,

Manchester)

Earlyleavers:therelationshipbetweenpayandtrainingquality

AkeymessagethatemergedfromourfocusgroupinManchesterwithpeoplewholeftan

apprenticeshipwithoutcompletingitwasthecloserelationshipbetweentrainingqualityand

pay.Unlikeourothergroups,wherepayvariedconsiderably,allbutoneoftheparticipantsin

theearlyleaversgrouphadbeenreceivingtheLSC/NASrate(then80aweek)whenthey

left.

Theirreasonsforleavingwerenotstraightforwardbutinmostcasesitwastheresultofa

combinationoflowpayandpoorqualitytraining.Someparticipantssaidtheprimaryreason

forleavingearlywaslowpaybutthiswasalwaysinthecontextofnotenjoyingtheworkand

receivingpoorqualitytraining.

Themainissueformewasthemoney.BythetimeIpaidchildcareIonlyhad

40leftIdidntwanttobeinthatfieldanyway.Ididntreallyenjoyit,the

longhours,andIcamehomeandhadkidstosortout.(Formerhospitality

apprenticeearlyleaver,female,24,Manchester)

Otherparticipantsweremoreexplicitaboutpoorqualitytrainingasthemainreasonfor

leavingearly.Amongalmostalltheparticipantsinthisgroup,therewasastrongfeelingthat

theyhadreceivedverylittletrainingandfewopportunitiestodevelopskillsintheworkplace,

andinsteadweresimplylefttodothemostmenialtasks.

Itwasjustrepeatingmyself,justdoingthesamethreethingsYouknow

whenyougetaSaturdayjob?IfeltlikeIwasjustdoingthatallweek.

(Formerhairdressingapprenticeearlyleaver,female,19,Manchester)

Itwasjustcoffeemakingand[stuff]likethat.Itwasjustdataworkonthe

computertypingincertainpeoplesnamesandthencancelling,whatever.

(Formerretailapprenticeearlyleaver,male,17,Manchester)

Afrequentcomplaintamongtheearlyleaverswasthelonghours,whichwerenotmatched

byadditionalpay.

Theyjustsaidtomeitwouldbeageneral9to5,butsomedaysIwasnt

gettingouttil7pmbecauseobviouslypeopleshairdontalwaysfinishat5,

andthenyouhavetocleanupafter.Iwasstillgettingpaidexactlythesame,

thatwastheproblem.(Formerhairdressingapprenticeearlyleaver,female,

19,Manchester)

Overtimepaywasgenerallynotavailable,and,incontrasttoourothergroups,hairdressing

apprenticessaidtheydidnothavetheopportunitytoearntips.Thiswaspossiblybecause

theyhadallbeenintheearlystagesoftheirapprenticeships(lessthansixmonthsin)when

theyleft.

Eventhoseparticipantswhodidnotleavebecauseofpoorqualitytrainingstillreferredto

theirlowwagesasafactorindecidingtoleave.Aparticipantwholeftbecauseofdifficult

relationshipswithcolleaguesfeltthelowpaymadethesituationlesstolerable.

BecauseIwasnthappy,themoneyIwasgettingwasntenoughtokeepmethere...ProbablyifpeoplehadbeenniceIwouldhavestayedbutbecauseI

didntlikeit,80wasntenough.(Formerretailapprenticeearlyleaver,

female,18,Manchester)


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Someearlyleaverswerealsounhappythatsomeoftheassurancestheyhadbeengiven

aboutpayincreasesdidnotmaterialise.Itwasinterestingthatthisissuedidnotcomeupin

theotherfocusgroups.

Ifyouwereachievingtargets,youshouldhavebeenabletogetbonuses.

Thatswhatthecollegesaidandmyemployeragreed,butitneverhappened.Neveranythinghappenedaboutitit[weeklypay]shouldhavegoneup

10.(Formerhospitalityapprenticeearlyleaver,female,24,Manchester)

Plansforthefuture

Amongcurrentapprentices,threeparticipantssaidtheywereactivelyconsideringleavingthe

apprenticeshipearly,orhadinthepast.Allthreewereinhairdressing;onewasearning60

andtheothertwowereearning80.Thissmallgroupincludedboththeapprenticeswho

appearedtobeeligibleforthenationalminimumwagebutwerenotreceivingit.Their

reasonsforthinkingaboutleavingweresimilartothosegivenbytheparticipantsintheearly

leaversgroup:acombinationoflowpayandpoorqualitytraining,butwithanemphasison

thequalityoftraining.

[Its]theworkandthemoney.Iliketheapprenticeshipandthetraining,but

Idratherdomoretraining,thatswhatImtherefor.Idontwanttobea

slave.(Hairdressingapprentice,male,17,Cardiff)

However,allthreewerekeentostayinhairdressing,andsaidtheywouldtransfertoa

differentemployerandtrytofinishtheirapprenticeshipifpossible.

Therestoftheapprenticeswhotookpartinourfocusgroupsallintendedtofinishtheir

apprenticeships.Participantshadarangeofideasaboutwhattheymightdooncetheyhad

completedtheirapprenticeship:

Continueworking:Justlessthanhalf(19)ofthecurrentapprenticeswespoketoplannedtocontinueworkingoncetheyhadcompletedtheirapprenticeship.Ofthis

group,justoverhalfplannedtostaywiththeircurrentemployer,whilejustunderhalf

wantedtomovetoadifferentemployer.Thiswasmainlybecausepromotion

opportunitieswerelimitedintheirorganisationortheyknewofemployerswhooffered

betterpayandconditions.

Apprenticeshipatahigherlevel:Aboutafifthofparticipantswantedtostartanapprenticeshipatahigherlevelwhentheyhadcompletedtheircurrentcourse.

Travelorworkabroad:Afurtherfifthplannedtotravelorworkabroad.ThisoptionwasverypopularamongparticipantsinMargateandBelfast.Hairdressinginparticularwas

seenasanoccupationthatcouldbeeasilydoneabroad,withplentyofopportunitiesin

countrieslikeAustraliaandNewZealand.

Collegeoruniversity:Asmallernumberofparticipants(sixintotal)expressedaninterestincompletingacollegeoruniversityqualification.Thiswasparticularlypopular

amongengineeringapprentices.Participantsfelttherewereopportunitiestousetheir

apprenticeshipasaroutetouniversity,bydoingHigherNationalCertificates(HNCs)or

foundationdegreesinmanycases.

Inoursurvey,over90percentofcurrentapprenticesinEnglandintendedtofinishtheir

apprenticeship.Thesmallnumberofrespondentswhosaidtheymightnotcompletetheir

apprenticeshiphadarangeofreasonsandnooverallpatternemerged.

SummaryandconclusionsApprenticesweregenerallyunhappyabouttheirpayandrecognisedthatitwas

relativelylow,comparedwithboththeirqualifiedcolleaguesandtofriendsinjobs

withouttraining.


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Apprenticesinthelowerpayingsectors,althoughtoalesserextentinhairdressing,weremorelikelytofeelthattheydidasimilarkindandamountofworkastheirnon-

apprenticecolleagues.Theywerethereforelesstolerantofthelowerapprenticewage.

Thisraisesimportantquestionsaboutthequalityoftrainingandthedifferent

treatmentofapprenticeandnon-apprenticestaffbyemployersinsomelow-payingsectors.

Participantsinengineering,andinhairdressingtosomeextent,weremorelikelytoacceptlargerpaydifferentialsbetweenapprenticesandfullytrainedworkers.These

sectoraldifferencesmayreflectdifferencesintrainingprovisionandlength,and

historicaldifferencesintheuseofapprentices.

However,formostapprentices,factorsbesidepayprimarilyjobsatisfactionandthepromiseofhigherearningsinthefutureweresufficienttomotivatethemtocomplete

theirtraining.

Wherelowpayhadaroleincausingyoungpeopletoleaveapprenticeshipsearly,orto

considerdoingso,thiswasprimarilybecauseitwaslinkedtopoorqualitytrainingandnegativeexperiencesintheworkplace.Paywasrarelythesingleorprimaryfactorin

participantsdecisiontoleavetheirapprenticeship,althoughamongtheyoungpeople

wespoketothereseemedtobearelationshipbetweenlowpayandpoorquality

training.

Trainingqualityvariedacrossandwithinthedifferentsectors,withalltheengineeringapprenticesandmosthairdressingapprenticesreportinggoodqualitytraining.Training

qualitywaslessfavourablyreportedamongapprenticesinretailandhospitality,

althoughsomeparticipantsinthesesectorswerepositiveabouttheirtraining.


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Inthischapterweconsiderindetailtheattitudesoffocusgroupparticipantstowardsthe

possibilityofanationalminimumwageforapprentices.Wealsolookattheirviewsonthe

currentpayarrangementsforapprentices,andtheirawarenessofhowtheminimumwageexemptionsoperateforapprenticesatthemoment.

Currentapprenticepayarrangements

Webeginthischapterbylookingatparticipantsunderstandingof,andviewson,current

apprenticepayandtheexistingNMWrules.

Awarenessofexistingpayarrangementsforapprentices

Participantsinourfocusgroupsweregenerallyawareofthecurrentrulesaround

apprenticeshippay,andawarenessandunderstandingoftheminimumwageexemptionswas

high.

InEngland,almosteveryparticipantwasawareoftheNAS/LSCminimumandawarenessoftheincreaseinthisratewhichcameintoforceon1August2009wasalsohigh.Wefoundno

casesofapprenticesinEnglandreceivingbelowthisrate.OutsideEngland,manyparticipants

werealsoawarethatapprenticeswerenotentitledtoanyminimumpayment.

SomeparticipantshadsomeunderstandingoftherulesgoverningentitlementtotheNMW

atage19.However,ingeneraltherewaslessclarityaboutwhentheNMWappliesto

apprenticesandmanyparticipantswereunclearaboutthepreciserulesonageandduration

thatgoverntheNMWeligibilityforapprentices.Asalreadydiscussed,twopeoplewerenot

receivingtheNationalMinimumWagealthoughtheyseemedtobeentitledtoit,andthe

lackofclarityabouttheageanddurationrulesseemedtobethecause.Thisconfusionwas

alsopickedupininterviewswithemployersandisdiscussedinthenextchapter.

Attitudestowardstheexistingage-relatedNMWrates

Manyapprenticeswerestronglyopposedtotheexistingage-relatedrates.Theyfeltthatit

wasmeaninglesstodistinguishb

a qualitative study of apprenticeship pay

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