A Qualitative Study of Apprenticeship Pay

WWW.IPPR.
ORG
AQualitativeStudyof
ApprenticeshipPay
AnipprreporttotheLowPayCommission
byKayteLawtonandEmmaNorris
January2010
©ippr2010
InstituteforPublicPolicyResearch
Challengingideas– Changingpolicy
2 ippr|AQualitativeStudyofApprenticeshipPay
Contents
Aboutippr ............................................................................................................................. 3
Abouttheauthors ................................................................................................................. 3
Authors’acknowledgements ................................................................................................. 3
Executivesummary................................................................................................................ 4
1.Introduction.................................................................................................................... 10
2.Youngpeople’sreasonsforstartinganapprenticeship .................................................. 14
Descriptionoffocusgroupparticipants.......................................................................... 14
Routesintoapprenticeships ............................................................................................ 15
Learningaboutapprenticeships ...................................................................................... 16
Decidingtodoanapprenticeship:influencesandmotivations...................................... 16
Summaryandconclusions.............................................................................................. 22
3.Youngpeople’sexperiencesofapprenticeships ............................................................ 23
Apprenticepay ............................................................................................................... 23
Trainingquality............................................................................................................... 26
Earlyleavers:therelationshipbetweenpayandtrainingquality .................................. 28
Plansforthefuture ........................................................................................................ 29
4.Youngpeople’sviewsonanationalminimumwageforapprentices ............................ 31
Currentapprenticepayarrangements............................................................................ 31
Anationalminimumwageforapprentices:the‘moral’arguments............................... 31
Anationalminimumwageforapprentices:participants’perspectivesonthepotential
impacts ........................................................................................................................... 33
Anationalminimumwageforapprentices:participants’viewsonhowitmightwork. 35
Reformingapprenticepay:policyoptionsputforwardbyparticipants ........................ 37
5.Employers’perspectivesonapprenticepay ................................................................... 40
Profileoftheemployers................................................................................................. 40
Currentpayarrangementsforapprentices..................................................................... 40
Anationalminimumwageforapprentices:employers’perspectivesonthepotential
impacts ........................................................................................................................... 43
Anationalminimumwageforapprentices:employers’viewsonhowitmightwork ... 46
Increasingthenumberofapprenticeshipsandimprovingcompletionrates................. 47
6.Trainingproviders’perspectivesonapprenticepay ....................................................... 50
Currentapprenticepayarrangements............................................................................ 50
Influencesonyoungpeople’sdecision-making............................................................. 51
Thepotentialimpactofanationalminimumwageforapprentices............................... 51
7.Careersadvisers’perspectivesonapprenticepay .......................................................... 54
Careersadvisers’viewsonapprenticeships.................................................................... 54
Careersadvisers’perspectivesonyoungpeople’sdecision-making............................... 55
Careersadvisers’advicetoyoungpeopleonapprenticepay ........................................ 56
8.Conclusionsandpolicyimplications............................................................................... 57
References .......................................................................................................................... 61
Annex:Copyofthesurveyofcurrentapprentices ............................................................ 62
Aboutippr
TheInstituteforPublicPolicyResearch(ippr)istheUK’sleadingprogressivethinktank,producing
cutting-edgeresearchandinnovativepolicyideasforajust,democraticandsustainableworld.
Since1988,wehavebeenattheforefrontofprogressivedebateandpolicymakingintheUK.Through
ourindependentresearchandanalysiswedefinenewagendasforchangeandprovidepractical
solutionstochallengesacrossthefullrangeofpublicpolicyissues.
WithofficesinbothLondonandNewcastle,weensureouroutlookisasbroad-basedaspossible,
whileourGlobalChangeprogrammeextendsourpartnershipsandinfluencebeyondtheUK,givingus
atrulyworld-classreputationforhighqualityresearch.
ippr,30-32SouthamptonStreet,LondonWC2E7RA.Tel:+44(0)2074706100E:info@ippr.org
www.ippr.org.RegisteredCharityNo.800065
©ippr2010
Abouttheauthors
AtthetimeofwritingKayteLawtonandEmmaNorriswerebothResearchFellowsworkingonthe
Citizen,SocietyandEconomyprogrammeatippr.EmmaNorrishassinceleftippr.
Author’sacknowledgements
TheauthorswouldliketothankTonyStudd,JessieEvansandTimButcherattheLowPay
Commissionforassistancethroughouttheprojectandforcommentsonearlierdraftsofthereport.
Wewouldalsoliketothankthefollowingipprcolleaguesfortheircommentsonearlierdraftsofthis
report:TonyDolphin,KateStanley,DaliaBen-GalimandCareyOppenheim.ThanksalsotoRitaBeden
atipprforadministrativesupport.
SpecialthankstoRachelSeal-Jonesatipprforsignificantresearchsupportonthisproject.
Finally,wewouldespeciallyliketothankeveryonewhogaveuptheirtimetoparticipateinthis
research.
Theauthorstakefullresponsibilityforthecontentofthereport.
Executivesummary
Althoughmostapprenticesareemployed,themajorityareexemptfromNationalMinimum
Wagelegislation,andpayratesforapprenticesvarysignificantlyacrossdifferentindustries
andbygenderandage.TheLowPayCommission(LPC)hasbeenaskedbyGovernmentto
considerhowapprenticepaycouldbebroughtundertheNationalMinimumWage
framework.Thisreport,commissionedbytheLowPayCommission,examinesvariationsin
apprenticepayacrosstheUKandtheroleofapprenticepayinyoungpeople’sdecisionsto
startandcompleteanapprenticeship.Thereportalsoconsidersthepotentialresponsesof
employerstotheintroductionofanationalminimumwageforapprentices.
Apprenticesundertheageof19areexemptfromminimumwagelegislationandthoseaged
19oroverareexemptiftheyareinthefirstyearoftheirapprenticeship.InEngland,for
apprenticeshipsfundedthroughtheNationalApprenticeshipService(NAS)/Learningand
SkillsCouncil(LSC),thereisarequirementthatallemployedapprenticesmustbepaida
minimumof£95aweek(£80aweekpriorto1August2009).Nosucharrangementexistsin
Scotland,WalesorNorthernIrelandandsoapprenticesoutsideEnglandarenotsubjectto
anyminimumpayrate.
Apprenticeshipsformakeyplankofgovernmenteffortstoincreaseparticipationin
educationandtrainingaftertheageof16.Theyofferacombinationoftheoreticaland
practicallearningdesignedtobeattractivetoawiderangeofyoungpeople,aswellas
supportingthetrainingneedsofindustry.TheLPCisconsideringapprenticepayinthe
contextofarisingparticipationageinEngland,withyoungpeoplebeingobligedtoremain
inaccreditededucationortraininguntiltheageof18by2015,andambitioustargetsto
increasethenumberofapprenticeshipstarts.
Thisreportisconcernedprimarilywithemployedapprenticesaged16to24workingin
hairdressing,retail,earlyyearschildcare,hospitalityandsocialcare–alllow-payingsectors
employingmainlyfemaleapprentices.Wealsolookedattheengineeringsectorfor
comparison,asapprenticepayisnormallyhigherhereandthevastmajorityofapprentices
aremale.Thefindingspresentedinthisreportarebasedonfocusgroupandsurveyresearch
withapprenticesandotheryoungpeopleacrosstheUK,plusinterviewswithemployers,
trainingprovidersandcareersadvisers.
Youngpeople’sreasonsforstartinganapprenticeship
Paywasthemainmotivationforsomefocusgroupparticipantstostartanapprenticeship,
butnotforthemajority,anditwasmoreimportantforapprenticesworkinginretailand
hospitality.Thiswaspartlybecausetheyweremorelikelytohavebeenworkingjustbefore
startinganapprenticeship,sotheywerekeentomaintaintheirearningswhilegaininga
qualification.Paywasalsomoreimportantforyoungpeoplewhonolongerlivedwiththeir
parents,andforolderapprentices.
Forthemajorityofparticipants,paywasafactorbutitwasnotthemainreasonforstarting
anapprenticeship.Youngpeopletoldusthatfamilyandsocialbackgroundhadaverystrong
influenceontheirdecisiontostartanapprenticeship.Thiswasespeciallytrueforhairdressing
andengineeringapprenticesandmanyparticipantsworkinginthesesectorshadfamilyor
friendsworkinginsimilarindustries.
Incontrast,somefocusgroupparticipantssaidtheirparentswouldhavepreferredthemto
takeamoreacademicroute,andthiswasalsothemessagethatmostparticipantshad
receivedfromcareersadvisersandteachers.Participantssaidthatcareersadviserssometimes
failedtodiscussoptionslikeapprenticeshipswithyoungpeoplewhowereconsideredtobe
performingwellatschool.Theyoungpeoplewespoketofeltfrustratedbythisandthought
thatmoreinformationandguidanceaboutapprenticeshipsshouldbeavailabletoeveryone.
Familyandsocialbackgroundalsocamethroughinparticipants’desiretogainahigh-quality
qualificationthroughanapprenticeship.Thiswasoneofthemostimportantmotivationsfor
youngpeople,particularlyforhairdressingandengineeringapprentices,withmanyfeeling
thatapprenticeshipsofferstrongercareerroutesthanacademicqualifications.Gaininga
tradeforlifewasalsokeyformany,providingsecurityand‘somethingtofallbackon’.
Theimportanceofgainingaqualificationandlearningatradewasalsoreflectedinour
surveyof160currentapprenticesinEngland.Apprenticesinretailandhospitalitywereless
likelytoseetheirapprenticeshipasalong-termcareeroption.Theseapprenticeships
appearedtoofferlesstrainingtimeandarealsoperhapsless‘vocational’subjects.
Participantsalsochoseapprenticeshipsbecausetheyprovidelotsofworkexperienceand
offeragoodalternativetofull-timeeducationforpeoplewhowanttocontinuelearningbut
notinaformalsetting.
Whenitcametopay,apartfromtheminorityofparticipantswhowereprimarilymotivated
bypay,itwasthepresenceofawagethatwasimportantratherthanthelevelofpay–as
longasthewagewassufficientlyhigherthantheEducationalMaintenanceAllowance,which
paysupto£30aweektoyoungpeopleinfull-timeeducation.Inourfocusgroups,
participantsdidnotdiscusstheinteractionbetweenapprenticepayandbenefits,towhich
they,theirparentsortheirpartnersmayhavebeenentitled.Thiswasnotraiseddirectlyby
ourfocusgroupdiscussionguideandwasnotbroughtupbyparticipants.However,thismay
beanissuethatrequiresfurtherresearch.
Youngpeople’sexperiencesofapprenticeships
Apprenticepayvariedconsiderablybothacrossandwithinthedifferentsectorscoveredby
ourresearch.Paywaslowestinhairdressingwithhigherwagesavailableinretail,hospitality
andengineering.Thesesectoralpatternsmeantthatfemaleapprenticesweremorelikelyto
bereceivinglowerwages.Inourfocusgroups,thefemaleparticipantswespoketowereall
workinginthelow-payingsectors;therewerenofemaleparticipantsinthehigherpaying
engineeringsector.Wedidnotidentifyanystrongdifferencesinpayalonggenderlines
withinsectors.
Oursurveyofyoungpeopledidnotallowustolookatdifferencesinpaybycountry
becausewereceivedarelativelysmallnumberofresponsesfromyoungpeopleinWalesand
Scotland.Threefocusgroupparticipantswerereceivingwhatcouldbecalledverylowwages
(belowthe£95LSC/NASrate)–twoinBelfast(bothon£60aweek)andoneinGlasgow
(earningabout£46aweek).OneoftheBelfastparticipantsalsoappearedtobeentitledto,
butnotreceiving,theminimumwage,sinceshewasagedover19andhadbeendoingher
apprenticeshipformorethanayear.ThisalsoappliedtooneparticipantinCardiff.Thismay
suggestthatthereissomeriskofverylowapprenticepayoutsideEngland.However,the
numberofpeopleinvolvedinourfocusgroupswasnotsufficienttobeabletodrawany
strongconclusionsandfurtherresearchmaybeuseful.Italsoindicatesthattheremaybean
issuearoundapprenticesreceivingapayincreasewhentheyturn19andhavebeenonthe
coursemorethanayear.
Mostoftheyoungpeoplewespoketowereunhappywiththeirpayandfeltitfailedto
reflecttheworktheydidandthecontributiontheymadetotheorganisationsinwhichthey
worked.Youngerapprenticeswerelesslikelytobeconcernedabouttheirpay,possibly
becausetheyhadlessawarenessofthewagesavailableelsewhereandalsobecausemost
werelivingwithparentsanddidnothavetocoverthefullcostoflivingfromtheirwages.
However,almostalltheyoungpeoplewhotookpartinourfocusgroupswerepreparedto
acceptlowapprenticewagesinreturnfortwoimportantadvantages:jobsatisfactionandthe
prospectofhigherwagesinthefuture.Manyparticipantscomparedthemselveswithfriends
workingfull-timewhoreceivedmuchhigherwagesbutdidmonotonousandunrewarding
work.Apprenticesinhairdressing,earlyyearsworkandengineeringwereparticularlylikelyto
reporthighlevelsofjobsatisfaction.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.
Youngpeople’sperspectivesonanationalminimumwageforapprentices
Theyoungpeoplewhotookpartinourfocusgroupsweregenerallyawareoftheminimum
wageexemptionsforapprenticesbutwerelessclearabouttheageatwhichapprentices
becomeeligiblefortheminimumwage.Participantspreferredminimumwageratesbasedon
qualifications,performanceoryearofapprenticeshipratherthanage,andmostwere
unhappyaboutthecurrentagebandswithinthenationalminimumwage.Theyalso
preferredhourlypayratestoweeklyones.
Participantsweresplitaboutwhetherapprenticesshouldbesubjecttothesameminimum
wageratesasotherworkers.Hairdressingandengineeringapprenticesweremorelikelyto
acceptthatthereshouldbepaydifferentialsbetweenapprenticesandotherstaff.This
reflectsthenecessityofhavingqualificationsandexperienceintheseindustries,which
createsacleardistinctionbetweentraineesandqualifiedworkers.Thisdivisionwasless
apparentinearlyyears,retailandhospitality,withapprenticesdoingsimilarworktoother
staff,whichmeantthatapprenticesinthesesectorsfounditdifficulttounderstandwhythey
shouldreceivemuchlowerwages.
Therewassomedebateaboutthepotentialimpactsofbringingapprenticepayunderthe
nationalminimumwageframework.Participantsfeltthatmoreyoungpeoplewouldbe
interestedinapprenticeships,whichcouldbepositive,butcouldalsoincreasecompetition
forplaces.Thiswasaparticularconcernamongthosewhofeltthatemployerswouldcut
backonthenumberofapprenticeshipplacestheyoffered.Engineeringapprenticeswere
especiallyconcernedaboutthenegativeimpacts,perhapsawareofthestrongreputation
andhighqualityoftraininginengineeringapprenticeships.
Therewasalsodisagreementaboutwhetheraminimumwagewouldimprovecompletion
rates.Someyoungpeoplearguedthatcommittedapprenticeswouldnotbedeterredbylow
wages,butsomeparticipantswereconcernedthatlowwagesmadeitlikelythatyoung
peoplewouldbetemptedawayfromtheirapprenticeshipifhigherwageswereavailable
elsewhere.Otherssuggestedthatregularpayrisesweremoreimportantforcompletionrates
thanthelevelofthestartingwage.
Focusgroupparticipantsalsohadsomeinterestingsuggestionsforimprovingpay
arrangementsforapprentices,withaparticularfocusonsupportingemployerstoprovide
placesandimprovingcompletionrates.Theirsuggestionsincludedwagesubsidiesfor
employers,regularpayrisesandcompletionbonuses.
Employers’perspectivesonapprenticepay
Weinterviewed12employersinhairdressingandearlyyears,allofwhomregularlyemployed
apprentices.Alltheintervieweeswereawareoftheminimumwageexemptionsfor
apprenticesbutsomewerenotclearabouttheageatwhichtheminimumwagebecomes
payableforapprenticeswhohadbeendoingtheircourseformorethanayear.
Amongtheemployerswespoketotherewasaclearsplitbetweenthosewhousedminimum
wageexemptionsforapprenticesandthosewhodidnot.Employerswhodidnotusethe
exemptionsweresupportiveofaminimumwageforapprenticesandfeltitwouldbefairerto
youngpeopleandhelpavoidpotentiallyexploitativepractices.
Employerswhomadeuseoftheexemptions–themajorityofinterviewees–werevery
concernedaboutthepotentialimpactofanationalminimumwageforapprentices.Most
employersinthisgroupsaidtheywouldofferfewerapprenticeshipplacesandaminoritysaid
theywouldcuttheirapprenticeshipprogrammealtogether.Possiblechangestothenumber
ofapprenticeshipplaceswasamuchmorecommonsuggestionthanchangestothestyleor
amountoftrainingofferedbyemployers.Concernsabouttheintroductionofanational
minimumwageforapprenticeswereparticularlystrongamonghairdressingsalonmanagers,
suggestingthatmanyhairdressingbusinessesrelyonbeingabletoemployapprenticeson
verylowwages.
Oneofthestrongestmessageswereceivedfromemployerswasthatintroducinganational
minimumwageforapprenticeswouldreducethenumberofemployer-ledapprenticeshipson
offer,encouragingmoreyoungpeopletodocollege-basedvocationalcoursesinstead.
Employerswereverycriticalaboutthequalityandappropriatenessofsuchcoursesin
hairdressingandearlyyearsandwereconcernedabouttheemployabilityofyoungpeople
whoundertookthem.
Currentpaylevelswerenotseenasabarriertotheprovisionofapprenticeshipplaces,but
therewasdisagreementaboutwhetherlowlevelsofpaycontributedtorelativelylow
completionrates,andthereforewhetheranationalminimumwagewouldhelpimprove
completionrates.
Employerswhowereopposedtoanationalminimumwageforapprenticeswerereluctantto
giveapreferenceforthelevelatwhichanyminimumshouldbeset.Therewasapreference
amongtheseemployersforaweeklyminimumandforage-relatedratesforallapprentices,
regardlessofleveloryear.
Otherperspectivesonapprenticepay
Wealsospoketoanumberoftrainingprovidersandcareersadvisersabouttheirviewson
apprenticepay.Trainingprovidersagreedthatpaywasrarelythemainreasonforyoung
peopletostartanapprenticeship,withthelong-termcareeropportunitieslinkedto
apprenticeshipsbeingmuchmoreimportant.Therewasdisagreementamongtheproviders
weinterviewedaboutwhetherornotpaylevelswereimportantinencouragingyoung
peopletofinishanapprenticeship.
Mosttrainingproviderssharedtheconcernsofemployersabouttheeffectofaminimum
wageforapprenticesontheprovisionofemployer-ledapprenticeships.Aswithemployers,
thiswasaparticularconcerninthehairdressingindustry.Trainingprovidersalsofeltthatany
increaseinparticipationincollege-basedvocationalcourseswhichmightresultfromthe
introductionofaminimumwageforapprenticescouldbedamagingforyoungpeople’s
employmentprospects.
Careersadvisersweregenerallyverypositiveaboutapprenticeships,althoughtheystated
thattheywouldbelesslikelytorecommendthemtoacademicallyablestudents.Theyalso
supportedtheevidencefromourfocusgroupsabouttheinfluenceoffamilybackgroundon
youngpeople’sdecisiontostartanapprenticeship.Somecareersadvisersfeltthata
minimumwageforapprenticescouldhelpthemprovidecleareradvicetoyoungpeople
aboutthelevelofpaytheycouldexpect.
Conclusionsandpolicyimplications
Ourresearchsupportspreviousstudiesthathavefoundwidevariationsinapprenticepay
acrosstheUK,withparticularlylowratesofpayforapprenticesinthehairdressingindustry.
Thisindicatesthatanationalminimumwageforapprenticeswouldhavethemostimpacton
low-payingsectors,especiallyhairdressing,whichtendstoemployfemaleapprentices.Our
studywasinconclusiveaboutdifferencesinapprenticepayacrossthefourcountriesofthe
UK.
Paywasclearlyanimportantfactorinyoungpeople’sdecisionstostartanapprenticeship,
butitwasrarelythemainmotivation.Asmostapprenticeshipsareover-subscribed,this
suggeststhatthereisnotastrongargumenttointroduceanationalminimumwagefor
apprenticesinordertoincreasethenumberofyoungpeoplewantingtodoapprenticeships.
However,itmaybethatchangestothepayarrangementsforapprenticeswouldmake
apprenticeshipsamoreattractiveoptiontoawiderrangeofyoungpeople–includingyoung
peoplewhooptedforamore‘academic’routeaswellasthosewhowentstraightintoajob
withouttraining.Inourresearch,wedidnotspeaktoyoungpeoplewhochoseotherpost-
16routes,buttherelativelylowpayassociatedwithapprenticeshipsmayhavebeenafactor.
Therewassomeevidencefromourfocusgroupsthatanationalminimumwagefor
apprenticeswouldincreaseyoungpeople’sinterestinapprenticeships,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.
However,ourresearchhasidentifiedanimportantrelationshipbetweenpayandtraining
quality,anditmaybethatifemployersarerequiredtopayaminimumwagetoapprentices,
theywillinvestmoreinthetrainingandsupportprovidedtoapprenticesinorderto
maximisetheirreturn.Theymayalsobeincentivisedtoensureabetterfitbetweenthe
apprenticeandprogrammeoftraining,applyingstricterentryrequirementstoattractthe
bestcandidates.Inaddition,aminimumwagecouldmeanthatsomeofthepoorestquality
apprenticeshipsarewithdrawnbyaminorityofemployerswhodonothaveagenuine
interestinofferinggoodqualitytraining.Aminimumwagecouldthereforehavesomeimpact
onthequalityofemployer-ledapprenticeshipsoverallandoncompletionrates,althoughour
researchwasnotabletolookatsomeofthesequestionsindetail.Furtherresearchandclose
monitoringoftheeffectofanychangestoapprenticepayarrangementswouldbeuseful.
Employersandtrainingprovidersalsoappeartohavelegitimateconcernsaboutthequality
andappropriatenessofcollege-basedvocationalcourses,andtheseshouldbeaddressedby
theGovernmentandthedevolvedadministrations.Aclearerfocusonemployer-led
apprenticesasthe‘goldstandard’wouldbeapositivestep.
Ourfinalconclusionisthatanationalminimumwageforapprenticeswouldprovidegreater
claritytoemployers,youngpeople,andthoseadvisingandsupportingyoungpeople,about
theemploymentrightsofapprentices.Thiscouldhelptoimprovecompliancewithnational
minimumwagelegislationintheminorityofcaseswhereemployersarefailingtopay
apprenticesthecorrectwage.
1.Introduction
Apprenticeshipsofferacombinationofwork-basedandtheoreticallearning.Most
apprenticesareemployedandreceiveawage,butemployerswhoemployapprenticescan
makeuseofexemptionsfromNationalMinimumWage(NMW)legislation.Apprenticepay
variessignificantlyacrosstheUK,particularlybysectorandgender(LPC2009).
Thisreportlooksathowapprenticepayratesaffectyoungpeople’sdecisionstostartand
completeanapprenticeship.Italsoexaminesemployers’useofminimumwageexemptions
forapprenticesandhowtheymightbeaffectedifapprenticepayweretobebroughtunder
theNationalMinimumWageframework.
Policycontext
IntheUK,apprenticesundertheageof19andthoseover19andinthefirstyearofan
apprenticeshipareexemptfromtheNationalMinimumWage.InEngland,for
apprenticeshipsfundedthroughtheNationalApprenticeshipService(NAS)/Learningand
SkillsCouncil(LSC),thereisarequirementthatallemployedapprenticesmustbepaida
minimumof£95aweek(£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
expectedtomeetthecostsofapprentices’wages.
Projectaims
TheresearchpresentedinthisreportwascommissionedbytheLowPayCommissioninApril
2009.ThiswasinthecontextoftheCommission’sremitfor2009/10toconsidertherate
anddetailedarrangementsforanapprenticeminimumwageundertheNationalMinimum
Wageframework.Thecentralaimsoftheprojectwere:
•TogainaninsightintohowapprenticeshippayratesdifferacrosstheUK,includingby
country,apprenticeshiplevel,industrysector,ageandgender.
•Tounderstandtheimportanceofpayinthetake-upandcompletionofapprenticeships
relativetootherfactors(suchaspeereffects,familybackgroundandcareersadvice),
andhowthisvariesbygender,age,sectorandcountry.
•Toinvestigatehowemployersmightrespondifapprenticepaywerebroughtintothe
NMWframework.
Althoughapprenticeshipscanintheorybeembarkeduponbylearnersofanyage,ourfocus
inthisprojecthasbeenonyoungapprentices(thoseaged16to24).Thisreflectstherising
compulsoryeducationandtrainingparticipationageinEnglandandtheconsiderable
increaseinyouthunemploymentgeneratedbythecurrentrecession.
Researchmethods
Thisisaqualitativestudywhichseekstounderstandthedifferentfactorsinvolvedin
complexdecision-making,bothbyyoungpeopleandemployers.GiventheremitoftheLow
PayCommission,thefocusofourresearchhasbeenindustrysectorsinwhichapprenticesare
knowntoberelativelylowpaid.
Thestudydrawsonthreesourcesoforiginaldata:
1.Focusgroupresearchwithcurrentandformerapprentices
•WeconductedsevenfocusgroupsacrosstheUKforthisstudy.Thegroupsrangedin
sizefromseventonineparticipantsandwehad54participantsintotal.Table1below
explainshowthefocusgroupswereorganised.
Table1:Descriptionoffocusgroups
Participants Sectors Numberofgroups Locations
Currentapprentices Amixoffivelow-paying Five Cardiff
sectors:earlyyears, Glasgow
hairdressing,retail,hospitality* Margate
andsocialcare Belfast
Manchester
Youngpeoplewholeftan Fivelow-payingsectors One Manchester
apprenticeshipwithout asabove
completingit(‘earlyleavers’)
Currentapprentices Engineering One Newcastle
*AlthoughstatisticsforEnglandshowthathospitalityapprenticesarenotparticularlylowpaid,thesectorasawholeislow-
payingandsowerefertoitinthisreportasalow-payingsector.
Engineeringapprentices,inEnglandatleast,tendtoreceiverelativelyhighwagescompared
tootherapprentices(FongandPhelps2008),andweusethisgrouptoprovideacomparison
withthelow-payinggroups.ThegroupswereheldinJulyandAugust2009.
2.Surveyofyoungpeople
Tocomplementourfocusgroupresearch,wecarriedoutasurveyofyoungpeopleinfour
categories:
•Currentapprentices
•Formerapprentices
•Youngpeoplewhohadleftanapprenticeshipwithoutcompletingit
•Youngpeoplewhohadseriouslyconsidereddoinganapprenticeshipbutfinallydecided
againstit.
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
numberofresponsesfromapprenticesinothersectorsandthereforedonotdrawany
conclusionsaboutpayinthesespecificsectors.
Wereceivedaverysmallnumberofresponses(fewerthan10)fromapprenticesinWalesand
Scotland,andsothesearenotincludedinouranalysis.Alargenumberofresponseswere
receivedfromapprenticesinNorthernIreland.However,theseresponsesweredominatedby
apprenticesinconstructionandthemotorindustryandbecausethesesectorsarenotthe
primaryfocusofthisresearch,wehavenotincludedtheseresultsinourreport.
Wealsoreceivedonlyasmallnumberofresponsesfromformerapprenticesandyoung
peoplewhoconsideredbutdidnotdoanapprenticeship,andsotheseresultsarenot
representedinthereport.
3.Interviews
Wecarriedout22interviewsasfollows:
•Employersinlow-payingsectorswhoregularlyemployedapprentices–12interviews
•Trainingproviders–5interviews
•Careersadvisers–5interviews
TheinterviewswereconductedbytelephoneinAugustandSeptember2009.
Researchtiming
OurresearchwasconductedbetweenJulyandSeptember2009,whentheUKwas
experiencingwhatmanyexpertsbelievewastheworstrecessionsincethe1930s.
Unemployment,particularlyamongyoungpeople,increaseddramaticallyasaresultofthe
recessionandtheeconomicsituationhasreceivedwidespreadmediacoverage.Itisvery
likelythattheeffectsoftherecessionhadanimpactontheresponsesofmanyinvolvedin
ourresearch.Inthereport,wetrytorefertothiswhereitseemsrelevant.
Researchlimitations
Thefindingspresentedinthisreportarenecessarilyinfluencedbythespecificpeoplewe
spoketoaspartofourresearch.Inparticular,itisimportanttonotethattheprojectwasnot
designedtoincludethefollowinggroupsinthefocusgroupsorinterviews:
•Youngpeoplenotdoingapprenticeships:Thisincludesboththosewhoenteredfull-
timeeducationandthoseinajobwithouttraining,someofwhommayhave
consideredapprenticeships.However,wedidspeaktoyoungpeoplewhohadleftan
apprenticeshipearly.
•Employerswhodonotofferapprenticeships:Includingthosewhowouldliketobutfeel
unabletoforsomereason;employerswhousedtoemployapprenticesbutstopped;
andemployerswhohaveneverconsideredemployingapprentices.
Inbothcases,thepeopleweincludedinourresearchmayhaveverydifferentexperiences
andattitudestowardsapprenticeshippaycomparedwiththosewedidnotspeakto.Thereis
alsotheusualproblemofself-selectionwhichexistswithanyqualitativeorsurveyresearch,
meaningthatsomepeoplewithparticularexperiencesmayhavedecidednottoparticipate
inourresearch.
Structureofthereport
Thenextthreechaptersfocusonourresearchwithcurrentandformerapprentices,drawing
onthefocusgroupsandsurvey:
•Chapter2considerstheroleofpayinyoungpeople’sdecisionstostartan
apprenticeship
•Chapter3looksattheroleofpayinyoungpeople’sdecisionstocompletean
apprenticeship
•Chapter4examinesyoungpeople’sperspectivesonaminimumwageforapprentices.
Thereportthentakesthefollowingstructure:
•Chapter5considersemployers’viewsonapprenticepayandtheirreactiontoincluding
apprenticeshippayintheNMWframework
•Chapter6setsoutthefindingsfromourinterviewswithtrainingprovidersabouttheir
viewsonapprenticepay
•Chapter7considerstheviewsofcareersadvisersandyouthcharities
•Chapter8setsoutourconclusionsandthepolicyimplications.
2.Youngpeople’sreasonsforstartinganapprenticeship
Inthischapter,weinvestigatethefactorsthatinfluenceyoungpeople’sdecisionstostartan
apprenticeship.Ouranalysisisbasedonthefocusgroupresearchwecarriedout,
complementedbydatafromoursurveyofyoungpeoplewhereappropriate.
Webeginbybrieflydescribingthekeycharacteristicsofthefocusgroupparticipants,and
comparingthiswithnationaldataonapprenticeswhereavailable.Wethenconsideryoung
people’smotivationsfordoinganapprenticeship,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,particularly
thelargenumberofapprenticeshipsinhairdressingandearlyyearscare.
Age
Participantswereagedbetween16and24,exceptoneparticipantwhowas26.Justovera
thirdofparticipants(19)wereaged16to18,withjustundertwothirds(34)inthe19to24
agegroup.Theparticipantsinourfocusgroupswereslightlyolderonaveragethanthe
overallapprenticepopulation,atleastinEngland(FongandPhelps2008).Apprenticesin
earlyyears,engineeringandhospitalityweremorelikelytobeinthe19–24agegroup,
whereashairdressingandretailapprenticesweremoremixedintermsofage.
Level
JustundertwothirdsofparticipantswerestudyingonaLevel2apprenticeship,andjust
overathirdwereonaLevel3course.Apprenticesinearlyyearsandengineeringweremore
likelytobeonaLevel3course,andhairdressingapprenticesweremainlydoingLevel2
apprenticeships.
Gender
Twothirdsofourparticipants(36outof54)werefemale.InEnglandandWales,aroundhalf
ofallapprenticesaremale,risingtoovertwo-thirdsinScotlandandNorthernIreland(LPC
2009).Theapparentover-representationoffemaleapprenticesinourresearchreflectsour
focusonlow-payingsectors,whereapprenticesaremorelikelytobefemale,asTable2
showsforEngland.
1.Unlessotherwisestated,ouranalysisrelatestoallourfocusgroupparticipants,includingtheearly
leaversandapprenticesworkinginthehigherpayingsector(engineering).
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)
Allthefemaleapprenticesinthegroupswereworkinginoneofthefivelow-payingsectors
andalltheengineeringapprenticeswespoketoweremale.
Ethnicity
Peoplefromanethnicminoritybackgroundappeartobeunder-representedin
apprenticeshipsinEngland,althoughnotinScotlandandNorthernIreland(LPC2009).Fifty
ofthe54focusgroupparticipantswerewhite,withtheremainingfouridentifying
themselvesashavinga‘mixed’ethnicbackground.
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:Justunderathirdofparticipantshadbeenstudyingat
schoolorcollegeimmediatelybeforestartingtheirapprenticeship.Manyhadastrong
preferenceforthesectortheychosetotraininandhadmadeanactivechoiceto
embarkonanapprenticeshipintheirparticularoccupation.Engineeringapprentices
weremorelikelytohavecomestraightfromschool,asweresomeapprenticesin
hairdressingandearlyyears.
•Notinemployment,educationortraining:Justunderafifthofparticipants(ninein
total)hadnotbeeninemployment,educationortrainingbeforebeginningtheir
apprenticeship.Somehadbeenlookingforwork;othershadbeentravelling;othershad
beencaringforchildren.Participantsintheearlyleaversgroupweremorelikelytobein
thiscategory.
• Leavinguniversityorcollege: Arelativelysmallnumberofparticipants(seven)had
previouslybeenstudyingatanFEcollegeoruniversityandhadlefttheircourseearly
beforestartingtheirapprenticeship.
Inoursurveyof160currentapprenticesinEngland,alargerproportionofrespondents
startedtheirapprenticeshipstraightfromschoolandfewerwereworkingimmediatelybefore:
•Alreadyinwork:23percentofsurveyrespondentshadbeenworkingimmediately
beforestartingtheirapprenticeship,athirdwiththesameemployerandtwothirdswith
adifferentemployer.
•Studyingatschoolorcollege: 57percentofrespondentshadbeenatschoolorcollege
immediatelybeforetheystartedtheirapprenticeship,althoughthiscouldinclude
peoplewhohadleftacollegecourseearlytostartanapprenticeship.
•Notinemployment,educationortraining: 13percenthadbeenoutofworkbefore
startingtheirapprenticeship,aslightlysmallerproportionthaninthefocusgroups.
•Doinganapprenticeshipatalowerlevel: Unlikeourfocusgroupparticipants,asmall
numberofpeoplewhocompletedoursurvey–6percent–hadbeendoingan
apprenticeshipatalowerlevelbeforestartingtheircurrentapprenticeship.
Learningaboutapprenticeships
Therearearangeofmethodsforaccessinginformationaboutapprenticeships,including
teachers,careersadvisers,youthcharities,employers,familyandfriends.Apprenticestaking
partinthefocusgroupshadfoundoutaboutapprenticeshipsthroughmostofthese
avenues:
• Employerortrainingprovider: Nearlyhalfofallparticipantshadfirstheardabout
apprenticeshipsfromtheiremployeroratrainingproviderwhoapproachedtheir
employer.Thiswasparticularlythecaseforthosewhohadstartedworkingstraight
fromschool,andforapprenticesinretailandhospitality.
• Familyandfriends:Aboutaquarterofparticipantswerefirstintroducedto
apprenticeshipsthroughfamilyorfriends,andthiswasparticularlytrueofapprentices
inhairdressingandengineering.
•Schoolorcollege: Slightlyfewerparticipants,aboutafifth,hadfirstcomeacross
apprenticeshipswhileinschoolorcollege,usuallybytalkingtoacareersadviser.This
wasmorecommonforapprenticeswhohadstartedtheircoursestraightfromschool
andforapprenticesinhairdressingandearlyyears.
•Careersadviser:Asmallnumber(five)hadbeenintroducedtoapprenticeshipsthrough
theConnexionsserviceoutsideofaschoolcontextorthroughajobcentre.Thistended
toapplytoapprenticeswhowereoutofworkbeforetheystartedtheircourse.
Decidingtodoanapprenticeship:influencesandmotivations
Inthissection,weconsiderthedifferentinfluencesonthedecisionoffocusgroup
participantstostartanapprenticeship.Ouraimistounderstandtheroleofpayinthe
decision-makingprocessanditsimportancerelativetootherfactors.
Familyandfriends
Theprofessionsandopinionsoffamilyandfriendshadastrongimpactonparticipants.
Someyoungpeoplereportedhavingbeeninfluencedbyfamilymemberswhowerealready
workinginthesectorinwhichtheychosetodoanapprenticeship.Theinfluenceoffamily
backgroundwasparticularlystrongforapprenticesinhairdressingandengineering.
‘Mycousin,shehasherownsalonsinceIwaslittleandIsaidIwanttobelike
you.ThenshetoldmeaboutitwhenIgotabitolderandshe’stheonethat
pushedmetowardsitbecausesheknewthatIwantedtodothat.’
(Hairdressingapprentice,female,17,Margate)
Foranumberofengineeringapprenticesinparticular,thefamilyconnectiontotheirchosen
occupationwentbackthroughmorethanonegeneration,andwasclearlyastronginfluence
ontheirchoices.
‘Mydaddidhisapprenticeshipwhenhewasmyageaswell…sohewas
quitepleased…Mygranddadusedtoworkdownthedocks,sohe[the
participant’sfather]donehisapprenticeshipdownthere.Itwashisdadthat
toldhimtodoit.’(Engineeringapprentice,male,20,Newcastle)
Forasmallernumberofapprentices,theirdecisiontodoanapprenticeshipwasalso
influencedbytheirfriends.
‘MymatewassayinghowheenjoyeditandtoldusaboutitandIlikedthe
soundofit…He’dfinishedandhe’sagoodmateofminesohe’ssteeredus
inthatdirection.’(Engineeringapprentice,male,21,Newcastle)
Beyondapprenticeswhoweredirectlyfollowingfamilymembersintoaparticularoccupation,
someparticipants’parentswerealsosupportive.
‘Mydadthinksit’sagoodideatohaveallthehealthandsafetyandthe
equality[training]becauseyou’regoingtoneedthatinanyindustry.’(Retail
apprentice,female,21,Belfast)
However,anumberofapprenticesalsotalkedabouthavingtobattleagainstmorenegative
perceptionsofapprenticeshipsamongfamilymembers,particularlywhenparentsfavoured
moretraditionalacademicroutes.
‘Mymum,she’saprofessionalandwantedmetogetadegree...Shehaddone
itallsowantedmetoaswell.Ithoughtitwasstupidtohaveadegreejustfor
thesakeofhavingadegreebutshedidn’treallyknowmuchabout
apprenticeshipsanyway.’(Hairdressingapprentice,female,21,Glasgow)
Careersadvisersandteachers
Asdiscussedabove,onlyarelativelysmallproportionofyoungpeopleinourfocusgroups
hadbeenintroducedtoapprenticeshipsthroughcareersadviserswhileatschool.Participants
inthisgrouphadgenerallyhadpositiveexperiences.
However,formanyparticipants,apprenticeshipshadnotbeenmentionedbycareersadvisers
atall.
‘Mycareersadviserwantedmetogotocollege.EverythingIwantedtodoshe
toldmetodoincollege…Neversaidnothingaboutapprenticeships.’
(Hairdressingapprentice,male,17,Cardiff)
Therewasageneralfeelingamongmostparticipantsthatcareersadvisersworkinginschools
prioritisedadviceabouttraditionaleducationaloptions,usuallyA-levels(orScottishHighers),
followedbyuniversity.Thisroutewasoftenpresentedastheonlysuitableoption,
particularlyforyoungpeoplewhoweredeemedtobe‘academic’orofabove-averageability.
‘That’sallour[careersadvisersandteachers]talkedabout.Juststayon,do
yourA-levels,gotouniversity,that’swhatyouhadtodoinourschool,that
wasjustwhatyouwereexpectedtodo.Theydidn’treallygiveyouanyother
options.’(Earlyyearsapprentice,female,23,Belfast)
Participantssaidthatapprenticeshipswerepresentedbycareersadvisersandteachersas
beingprimarilyanoptionforstudentsoflowerability.Evensomeparticipantswhohadhad
apprenticeshipsrecommendedtothembyacareersadviserfeltthiswasbecausetheir
academicperformancehadbeenpoor.
‘Mylastcareersinterview…shewastellingmeIshoulddomyapprenticeship
becausemypredictedgradeswererubbish.’(Hairdressingapprentice,female,
17,Margate)
Atotalofsevenapprenticeshadstartedacourseatcollegeoruniversitybutleftwithout
completingitbecausetheyfeltthecoursewasunsuitable.Theytendedtofeelthattheyhad
beenpressuredintoacademicoptionsbycareersadvisers,teachersandparents,and
regrettedtheadditionaltimetheyhadspentpursuingtheseoptionsbeforestartingtheir
apprenticeship.
‘IwenttosixthformandthenIgotpushedintouni.IwentforayearandI
didn’tlikeitmuch…Myheadofyear,shewasreallypushywithallofusand
allofushaveleftnow…Idon’tlikeheranymore,shewastedayearofmy
life.’(Retailapprentice,male,20,Margate)
TherewerealsoasmallnumberofparticipantswhohadcompletedA-levelsoruniversity
degreesbutnowregrettedthischoiceandwouldhavepreferredtohavestartedan
apprenticeshipearlier.Someoftheblamewaslaidoninappropriateadvicefromcareers
advisers.
‘She[careersadviser]waslike,no,doyourA-levels,gotouniandthengoon.
Butithasn’tbenefitedme…nowI’minretailfornoapparentreason.Ididall
thatworkfornothingandIfeelthatifIhadbeenencouragedtodoan
apprenticeshipIwouldhavebeeninabetterplacerightnow.’(Retail
Developingacareerand‘learningatrade’
Oneofthemostcommonreasonsfordoinganapprenticeshipamongourparticipantswas
thattheyfeltitwouldprovidethemwithatradethattheycanrelyonthroughouttheirlives.
Apprenticesinhairdressing,engineeringandhospitality(thosetrainingtobechefs)were
mostlikelytotalkabouttheiroccupationasa‘trade’andasprovidingacareeroverthelong
term.
Anumberofparticipantsinhairdressingandengineeringinparticularmentionedthesecurity
ofhavingaqualificationinaskilledoccupation.Therecessionmadethisevenmore
importanttothem,buttheyalsotalkedmorebroadlyaboutthesecurityitoffers.
‘It’salwayssomethingtofallbackon.Ifyoutrysomethingdifferent,you’ve
alwaysgotthattogobackto.It’slikeinsurancereally…noonecantakethat
qualificationoffyou.’(Engineeringapprentice,male,20,Newcastle)
Participantswereparticularlypositiveabouttheclearcareerpathofferedbyapprenticeships
comparedtotheirperceptionsofmoreacademicqualifications.Therewaswidespread
scepticismamongtheyoungpeoplewespoketoabouttheemploymentbenefitsof
academicqualifications.
‘Everybodywho’sdonetheirA-levels,donetheiruniversity,andthey’vedone
theirdegrees…theygoandtheyworkinMarksandSpencer’s[or]they
haven’tgotajob.’(Hospitalityapprentice,male,26,Belfast)
Inaminorityofcases,theopportunitiesforcareerprogressioncreatedbyapprenticeships
werespecificallylinkedtothefactthatinparticularorganisationsoroccupationsacertain
levelofqualificationwasrequiredtodohigher-payingjobs.Thiswasparticularlythecasefor
thetwosocialcareapprenticesandwithaminorityofretailapprentices.
Inothercases,therewasamoregeneralconcernabout‘movingup’andtheapprenticeship
wasseenasimportantinthiscontext.
‘SinceI’vebeendoinganNVQ,themanager’sbeenthinkingaboutmaking
measupervisorandthenIcanmoveupandmaybegetintobeingaregional
managerorevenareamanager.Soitgivesyouloadsofoptionstomoveup.’
(Retailapprentice,female,18,Manchester)
Moreusually,however,theconceptofatradeorlong-termcareerwaslessprevalentamong
retailapprentices,partlybecauseofthemoregenericnatureofthework.Themain
attractionforthisgroupofapprenticeswastheabilitytogetaqualificationwhile
maintainingthesameearnings.Thisalsoperhapsreflectsthefactthatmostretail
apprenticeswererecruitedontothecourseviatheiremployerratherthanmakinganactive
decisiontostartanapprenticeship.Therewassomesuggestionthattheadditionalwork
involvedinaretailapprenticeshipwasnotparticularlydemanding,whichmadeitmore
attractive.
Workexperience
Aswellasthekeyissueofgainingatradeorcareerforlife,participantshighlightedtheir
desiretogainworkexperienceasoneofthekeymotivationsfordoinganapprenticeship.In
particular,participantscontrastedthepracticallearninggainedthroughanapprenticeship
withthetrainingofferedinFEcolleges.Thiswasparticularlyimportantinhairdressingand
earlyyears,wherehands-onexperiencewasfelttobevitaltotheirfutureemployability.
‘It’smorebeneficialifyougointoanapprenticeshipbecauseifyougoto
collegeyou’llhavetoretrainagain.You’vegotnoexperience,handson
experience…Youwon’tgettakenoninasalonifyougointocollege,you’re
notuptostandard.’(Hairdressingapprentice,male,17,Cardiff)
Participantsalsothoughtthatthekindofworktheydidintheworkplacewasverydifferent,
andoftenmoreadvancedandmorerelevanttoemployers,thantheexperiencestheywould
haveincollege.
‘WhenIwentonthejob,itwastotallydifferenttowhatwedidincollege.In
college,wedidwelding,bench-fittingandsheet-metalwork.ThenwhenI
wentintoCNCmilling,it’sprogrammingandmachine-settingandthingslike
that.Itwasjustcompletelydifferent.’(Engineeringapprentice,male,19,
Newcastle)
Thesewerepointsraisedstronglybytheemployerswespoketo,particularlyinthe
hairdressingsector,andwediscussthisinmoredetailinChapter5.
Analternativetofull-timeeducation
Asmentionedaboveanumberofparticipantshadstartedanapprenticeshipafterleavinga
collegeoruniversitycourseearlybecausetheydidnotwanttopursueatraditionalacademic
route.Thiswasalsoaclearmotivationforanumberofotherapprentices.
‘Ijustdidn’twanttogotouniversityandIthoughtthat[anapprenticeship]
wasagood,sensibleoption,insteadofjustleavingschoolandgettingajob
andstayingonthesamewagetherestofyourlife.’(Engineeringapprentice,
male,21,Newcastle)
Participantswereclearthattheyremainedinterestedinlearning,butthataschoolorcollege
settingwasnotappropriateforthem.
‘Iwantedtolearn,butthenyou’renotstuckatcollegeallday.IfIwentall
week[tocollege],IknowIwouldn’tgoifitwasallweekbecauseI’djustget
bored.’(Hairdressingapprentice,female,17,Margate)
Pay
Althoughmostparticipantshadstrongfeelingsabouttheirpayoncetheystartedworking
(exploredinthenextsection),payseemedtobelessimportantthansomeoftheother
factorsdiscussedaboveininfluencingyoungpeopletostartanapprenticeship.
Aminorityofparticipantswereclearlymotivatedtodoanapprenticeshipprimarilybecause
ofthewage.
‘Thatwasthemainreason[pay].OnceIstartedit,Irealisedthatthatwasthe
betterchoiceanyway,becauseyouweregettingmoreexperienceandstuff.
Butpaywasthemainreason.’(Earlyyearsapprentice,female,21,Glasgow)
Ofthosewhoweremotivatedbythepay,sometalkedaboutwantingtohaveearnings
‘straightaway’ratherthanwaitinguntiltheyhadachievedacademicqualifications.
Whereyoungpeoplehadstartedworkingbeforebeginningtheirapprenticeship,itwas
importantforthemtobeabletocontinueearningawagewhileworkingtowardsa
qualification.
‘Theplanformewastoworkforayearandthengobacktocollege.But
whenIfoundoutyoucangetqualificationsatthesametimeasdoingthe
job,itwouldbehardtogiveupthewagenow.’(Retailapprentice,female,18,
Manchester)
Asmallnumberofparticipantsalsosaidthatthelowwageassociatedwithapprenticeships
hadinitiallyputthemoffapplyingforanapprenticeshipuntilotherfactorshadchanged
theirminds.
‘Ithinkitwasthemoneythatputmeoffatthestart.Iwasonly16whenI
leftschoolandIwasinacallcentrethatwasgivingme£400everytwoweeks
andnowI’m21andonlygetting£120everytwoweeks.’(Hairdressing
However,forthemajorityofparticipants,althoughthepresenceofawagewasimportant,
thelevelofapprenticepaywasasecondaryissuewhentheyweremakingthedecisionto
startanapprenticeship.Therewasoneimportantcaveattothis:mostparticipantsfeltthat
apprenticepayhadtobeconsiderablyhigherthantheEducationalMaintenanceAllowance
(EMA)2,whichwastheirmainpointofcomparison.
‘IjustwantedthemoneyassoonasIleftschool.Atsixthformyoudidn’tget
paidunlessyouwereontheEMAandthatwasonly£30aweek.’
(Engineeringapprentice,male,20,Newcastle)
Participantsmadetwoothercomparisonswhendiscussingtheirwages:theincomesoffull-
timeuniversitystudents;andwagesforjobswithouttraining.Mostparticipants,but
particularlythoseinengineering,feltthattheirpaycomparedveryfavourablytotheincome
offull-timestudents,whichaddedafurthermotivation.
‘Youseeyourmatesthat’satcollegeanduniandnotabletogooutonthe
weekend...They’relike,ohmam,canIborrowsomemoneybutyou’vegot
yourownmoney.’(Engineeringapprentice,male,20,Newcastle)
Themajorityofparticipantsrecognisedthattheapprenticewagewassignificantlylowerthan
thewagetheycouldearninajobwithouttraining,butmostcurrentapprenticeswerewilling
totoleratethisinreturnforthelong-termbenefits.Wereturntothispointinmoredetailin
thenextchapter.
Anumberofparticipantswereunclearabouthowmuchtheywouldbeearningbeforethey
startedtheirapprenticeship,whichfurthersuggeststhatthelevelofapprenticesisnota
majorinfluenceondecision-making.
2.TheEMAisameans-testedallowanceworthupto£30andpaidtoyoungpeopleaged16to18in
full-timeeducation.
‘Irememberatmyinterview,Iaskedaweebitbutyoudon’treallywanttoask
aboutpayandthings…Idon’tthinktheyexplainedthatuntilIactually
started.’(Earlyyearsapprentice,female,21,Glasgow)
Youngerapprenticesstartingstraightfromschool,forwhomtheapprenticewagewouldbe
theirfirstsourceofincome,hadalsonotbeenveryconcernedaboutthelevelofpaywhen
theyfirststartedtheirapprenticeship.
Surveyfindings
OursurveyresultsforcurrentapprenticesinEnglandconfirmsomeofthefindingsfromour
focusgroupsaboutyoungpeople’smotivationsforstartingapprenticeships,althoughthere
aresomeimportantdifferences.Figure1showsthereasonswhyrespondentsstartedan
apprenticeship:
•Thetwomostcommonreasonsthatrespondentsreportedforstartingan
apprenticeshipwerehavinganinterestinthesubject(69percent)andthedesireto
gainaqualification(66percent).
•Theopportunitytolearnaskillandgainworkexperiencewerealsoveryimportantto
respondents,at51and49percentrespectively.Tosomeextent,theseresponsesdiffer
fromthoseofourfocusgroupparticipants,whoweremorelikelytotalkabout
apprenticeshipsintermsoflearningatradeorskill,andlesslikelytotalkexplicitly
aboutgainingaqualification,althoughhavingaformalqualificationwasclearlylinked
totheideaofhavinga‘tradeforlife’.
•Factorsaroundearningawagewereslightlylessimportantinoursurvey,althoughstill
significantforanumberofrespondents.Theopportunitytobepaidforlearningwas
importantforjustoverathirdofrespondents(36percent).Justunderathird(28per
cent)alsostartedanapprenticeshipinpartbecausetheyneededtoearnmoney.This
differsslightlyfromourfocusgroupparticipantswhoveryrarelydiscussedaneedto
earnawage.
•Justunderaquarter(23percent)hadhadanapprenticeshiprecommendedtothemby
aparent,friend,teacherorcareersadviser.
Figure1.Reasons
forstartingan
apprenticeship Interested in subject
Source:Surveyof To gain a qualification
currentapprenticesin
Wanted to learn a skill
England(excluding
apprenticesin To gain work experience
businessadmin.), Would be paid to train
summer2009
Needed to earn money
Totalrespondents=
Recommended by someone else
160;multiplechoice
questionsoresponses Didn't want to go to university
donotsumto100% Didn't like school
Friends were doing them
0% 20% 40% 60% 80%

Summaryandconclusions
•Formanyparticipants,thedecisiontostartanapprenticeshipwasdirectlyinfluencedto
someextentbyfamilybackgroundandadvicefromcareersadvisersandteachers.
Hairdressingandengineeringapprenticesweremorelikelytobeinfluencedbythe
occupationandviewsoftheirparents.
•Insomecases,participantshadbeendissuadedordiscouragedfromdoingan
apprenticeshipbyparentsorcareersadvisers.Thiscouldmeanthattherearesome
youngpeoplewhowouldliketodoanapprenticeshipbutarenotgiventhe
opportunityto,andthisissupportedbyotherresearch(SkillsCommission2009).
•Participantsalsohadtheirownreasonsforwantingtodoanapprenticeship,someof
whichwerebasedoninformationfromfamily,friends,careersadvisersandteachers.
Themainreasonswere:wantingtobequalifiedinaparticulartradeorskill,andthe
longertermcareerbenefitsofthis;theopportunitytogainworkexperience;the
chancetocontinuelearningbutoutsideaformaleducationalenvironment;andthe
abilitytoearnawage.
•Hairdressingandengineeringapprenticesweremorelikelytotalkabouttheir
apprenticeshipintermsofa‘trade’andwerealsomorelikelytobeinfluencedbythe
occupationandviewsoftheirparents.Retailandhospitalityapprenticesweremore
likelytobemotivatedbytheabilitytomaintaintheirearningswhilegaininga
qualification.
•Althoughpaywasclearlyamotivatingfactorformanyoftheparticipants,itwasrarely
theonlyormainmotivationfordoinganapprenticeship.Theotherfactorslistedabove
appearedtobemoreimportantformostparticipants,althoughasmallnumberwere
motivatedprimarilybythewageattachedtoapprenticeships.
•Wherepaywasimportant,itwasthepresenceofawagethatwasmoreimportantthan
thelevel ofpay,aslongasthewagewasconsideredtobesignificantlyhigherthanthe
EMA.Thecomparisonwithearningsinajobwithouttrainingwasnotconsideredby
mostparticipantstobeparticularlyrelevantbecauseparticipantsunderstoodthelonger
termtrade-offbetweenlowwagesandtrainingnowandhigherearningsinthefuture.
3.Youngpeople’sexperiencesofapprenticeships
Wenowconsiderparticipants’experiencesofapprenticeships,includingthegroupofearly
leavers.Westartbyoutliningtheearningsofapprenticesinthefocusgroups,before
discussingtheirviewsontheirpay,thequalityoftraining,andtherelationshipbetweenthe
two.Welookinparticularattheroleofpayininfluencingyoungpeople’sdecisionto
completeanapprenticeship.
Apprenticepay
Amongourfocusgroupparticipants,pay3 variedbysectorandalsowithinsector.
Hairdressing
Exceptintwoinstances,wherehairdressingapprenticeswerebeingpaidbetween£250and
£300aweek,allhairdresserswerereceivingweeklyearningsofbetween£80and£120.In
England,themajoritywereonthe£80(£95from1August)LSC/NASweeklyrate.Outside
England,wageswerenotnecessarilylower,althoughintwocasesinBelfast,hairdressing
apprenticeswerereceiving£60aweek.Hairdressingapprenticeswerethelowestpaidamong
ourfocusgroupparticipants.Thisisinlinewiththefindingsfromthe2007surveybythe
DepartmentforInnovation,UniversitiesandSkills(DIUS)ofapprenticepayinEngland,
wherehairdresserswerepaidanaverageof£109aweek.
Wealsofoundtwoinstances,oneinBelfastandoneinCardiff,wherehairdressing
apprenticeswereapparentlynotreceivingthenationalminimumwagedespitebeingentitled
toit.Inbothcases,thishadoccurredwhentheapprenticehadturned19andhadbeen
doingthecourseformorethanayear,andsotheminimumwageexemptionsnolonger
applied4.
Earlyyears
Payintheearlyyearssectorvariedfromapproximately£90aweektoatoprateof£230a
week.TwoparticipantsinGlasgowwereearningapproximately£90aweek,indicatingthat
theiremployersweremakinguseoftheminimumwageexemptions.Therestofthe
apprenticesinthissectorwereearningaroundtheminimumwage,andnonewereearning
verymuchabovetheadultminimumwage.Forcomparison,earlyyearsapprenticesin
Englandwereearning£142onaverageaweekin2007(FongandPhelps2008).
Retail
Wagesinretailweresimilartoearlyyears,ifslightlyhigher,withtwopeopleontheLSC/NAS
minimumrateandtherestearningbetween£190and£260aweek.Mostretailapprentices
wereontheadultNMWrate,reflectingthefactthatthemajoritywerealreadyworkingwhen
theystartedtheirapprenticeship.FongandPhelps(2008)foundthattheaveragewagefor
retailapprenticesinEnglandin2007was£168.
3.Paydatafromfocusgroupparticipantswascollectedthroughaself-completedformwhere
participantswereaskedtheirhourly,weekly,monthlyorannualwagegrossoftax.Participantswere
askedtousethetimeperiodtheypreferredbecauseitcanbedifficultforpeopletotranslatetheirpay
intoaweeklyamount.Whereparticipantsprovidedpayinformationinhourly,monthlyorannualterms,
wehaveestimatedanequivalentweeklyamount,assumingthatparticipantswereworkinga40hour
week.Thiswasareasonableassumptionbecausealmostalltheparticipantswhoprovidedpay
informationinthiswaywereworkingfull-timeandweredoingverylittleornooff-the-jobtraining.
However,itdoesmeanthatwecanonlyprovideestimatesofgrossweeklyearnings.
4.Inbothcases,weadvisedthemtotalktotheiremployertoseekclarificationabouttheirwage
entitlementsandtocontacttheirtrainingproviderand/orHMRCiftheystillhadconcerns.
Hospitality
Thelowestsinglewageamongourparticipantswasinhospitality.One16yearold
apprenticeinGlasgowwasearningapproximately£46aweek.Thissectoralsohadthe
highestapprenticewages,withfourpeopleearningbetween£260and£270aweek.Two
hospitalityapprenticeswereontheLSC/NASminimumandafurthertwowereearning
£190,whichisequivalenttotheNMWdevelopmentratefor18to21yearolds.IntheDIUS
2007paysurvey,hospitalityapprenticeswereearninganaverageof£187aweek(Fongand
Phelps2008).
Socialcare
Weonlyhadtwoparticipantsworkinginsocialcare,oneearning£230aweekandtheother
£280(thehighestwageinourfocusgroups).
Engineering
Earningsinengineeringwerenotparticularlyhigherthanintheothersectors,excluding
hairdressing.Wagesvariedfrom£80aweekforanewstartertoamaximumof£265aweek,
withmostparticipantsearningbetween£190and£230.Mostengineeringapprentices
reportedstartingonlowwages,intheregionof£80aweek,andreceivedwageincreases
afterthefirstsixor12months.In2007,engineeringapprenticesinEnglandhadaverage
weeklyearningsof£189(FongandPhelps2008).
Surveyresponses
Figure2belowshowstheaverageweeklyearningsreportedbysurveyrespondentsin
England.Thechartshowstwoclustersofresponses,onearoundtheLSC/NASrateof£80
(or£95from1August)andonehigheruptheearningsdistributionbetween£120and
£299.Thissuggeststhat,broadly,amongourrespondentstherewasonegroupof
apprenticespaidaroundtheLSC/NASrateandanothergroupwhosepaywassubstantially
abovethislevel.
Inthesurvey,apprenticepayinthreeofthesectorsforwhichwehavesufficientdata–
businessadministration,constructionandearlyyears–followsaverysimilarpattern,with
peaksaroundtheLSC/NASrateandthe£150to£299level.Inhairdressing,andhealthand
socialcare,thepatternisofearningsskewedtowardstheLSC/NASrateandveryfew
respondentshadearningsabovethe£95–£104bracket.
Figure2.Average
grossweekly
Proportion of respondents
earningsreported
bysurvey 30%
respondentsin 25%
England 20%
Source:Surveyof 15%
currentapprenticesin 10%
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apprenticesin 0%
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weeklyearnings
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beforetaxandNI.
Youngpeople’sperspectivesoncurrentapprenticepay
Thevariationinpayamongfocusgroupparticipantsmeantthatarangeofopinionswere
voicedonthesubject,althoughmostcommentswereeithernegativeorneutral.
Anumberofparticipantsrecognisedthattheirearningswereverylowandfeltthattheir
wageswereinsufficienttoenablethemtoliveindependently.Manylivedwiththeirparents
orweresupportedbythewagesofpartners,althoughmanyoftheseparticipantsstillfelt
theirwageswereinadequate.
‘Ithinkitfeelslikeyou’regettingliterallynothingbecauseonceyou’vepaid
yourrentandyougettheessentialstuffthatyouthinkyouneed,it’slike
you’vegot£100left[foramonth].Youcan’tbuynothingwiththatbecause
youknowyou’llbeliterallyleftwithnothingfortherestofthemonth.’
(Hairdressingapprentice,female,17,Margate)
Asmallnumberofparticipantshadasecondjobtosupplementtheirapprenticeearnings.
Anumberofparticipantsfeltthattheydidsimilarworktocolleagueswhowerenotdoing
anytraining,whichmadethedifferenceintheirwagesseemunfair.Thisseemedtobea
particularprobleminearlyyearsandhairdressing.
‘We’retreatedasqualifiedstaff.Weareexpectedtodothesame.We’retotally
gettingpaidalotless.It’sfrustrating.’(Earlyyearsapprentice,female,19,
Glasgow)
However,someparticipantsstatedquiteexplicitlythattheywerenotconcernedabouttheir
currentearnings,eventhoughtheyrecognisedtheirpaywasrelativelylow.
‘Idon’treallycareaboutthepay.IknowIgetreallyrubbishpayforthehours
Ido.’(Hairdressingapprentice,female,17,Margate)
SomeparticipantsalsoraisedconcernsabouttheEMAbecausetheyfeltitrepresenteda
‘wage’forcollegestudentswhoarenotinemployment.
‘TheEMAannoysme.Afewofthemgetthe£30aweekbutthentheirmum
givesthem£20aweek,andtheycanjustspenditonbeer.That’s£50aweek
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.
‘MatesI’vegotthatworkinthecallcentresthatget£900amonthandthenI
wasgetting£220[atthebeginningoftheapprenticeship].Butthenyou
think,well,they’regoingtobestuckon£900andthat’sit.ThewaythatI
lookatitis,afterI’mout,it’lljustkeepgoingupandupandupbecauseIcan
progressfurtherupandtheycan’treallygomuchfurther.’(Engineering
apprentice,male,20,Newcastle)
Participantsalsoreferredtoqualifiedcolleagueswhohadtakenthesamerouteandnowhad
muchhigherearnings.Thisgavethemasenseoftheirlikelycareertrajectoryandfuture
earnings.
‘Whatgetsmethroughitisthatthey’veallbeenthereanddoneitaswelland
they’renowthetopstylist.Youknowthatinoneandahalfyears’,twoyears’
time,you’regoingtobeintheirposition.’(Hairdressingapprentice,female,
17,Margate)
Someparticipantspointedtothehigherearningsavailabletoqualifiedstaffasaclear
incentivetofinishtheapprenticeship,regardlessoftheircurrentpay.
‘It’sanincentivetofinish,isn’tit?Yougeta[low]wageatthestartbutifyou
canstickthroughit,youknowthatbytheendofityouwon’tbeona[low]
wage.’(Engineeringapprentice,male,20,Newcastle)
Participantsalsofelttheyhadtheopportunitytodoajobwhichisenjoyableandrewarding,
andagainthiswasoftendiscussedinrelationtothe(inferior)jobsatisfactionenjoyedby
friendsandpeers.
‘It[thepay]don’tcomparetoworkingatTescobutthenalotofpeoplethatI
knowthatdoworkthere,theycomehomeandthey’llbesickoftheirjob
becausethey’reliterallystackingshelvesalldayorsittingatthecounter.
Whereasinourjobit’llbewashuporsetthispersonsoyouneverknowwhat
you’regoingtobedoing.Soitisworthitinthelongrunbecauseyou’re
alwaysgoingtohavesomethingdifferenttodo.’(Hairdressingapprentice,
female,17,Margate)
Therewasalsoastrongfeelingamonganumberofparticipants,particularlyinhairdressing
andengineering,thatthelevelofapprenticepaywasalmostirrelevantifthejobprovided
jobsatisfaction,andthathigherpaywouldonlyberequiredifjobsatisfactionwaslow.
‘Ithinkifyou’rehappyinajobthenitdoesn’tmatteraboutthemoneyreally.
Ifyouwereina[bad]jobwith[low]moneythenyou’dwantmore,wouldn’t
you?Ifyou’rehappygoingtoworkthenyouwouldn’tcare.’(Hairdressing
apprentice,female,17,Margate)
However,mostoftheparticipantswhotookthisapproachtotheirpaywereintheyounger
agegroup(16–18)andwerebeingfinanciallysupportedbyparents.
Inourfocusgroups,participantsdidnotdiscusstheinteractionbetweenapprenticepayand
benefits,towhichthey,theirparentsortheirpartnersmayhavebeenentitled.Thiswasnot
raiseddirectlybyourfocusgroupdiscussionguideandwasnotbroughtupbyparticipants.
However,thismaybeanissuethatrequiresfurtherresearch.
Trainingquality
Trainingarrangementsforapprenticeshipsvarybysectorandemployer.Apprenticescan
receiveacombinationofon-the-jobandoff-the-jobtraining,whichissometimesorganised
as‘block’trainingoveranumberofweeksatcollegeoratrainingcentre.Thereareno
specificrequirementsforapprenticestospendaminimumnumberofdaysdoingdifferent
kindsoftraining.
Theapprenticesinourfocusgroupswereeitherdoingamixofon-the-jobandoff-the-job
training(includingsome‘block’training)orjuston-the-jobtraining.Thegeneralpatternof
trainingineachsectorwasasfollows:
•Hairdressing:thevastmajoritydidonedayaweekoff-the-jobtraining.Asmallnumber
didhalfadayaweek.
•Earlyyears:mostparticipantseitherdidnooff-the-jobtrainingoronedayamonth.
•Socialcare:thetwosocialcareapprenticesdidnooff-the-jobtraining.
•Hospitality:trainingarrangementsvariedinthissectorwithsomeparticipantsdoing
onedayaweekoff-the-jobtrainingandsomedoingnone.
•Engineering:variedconsiderablydependingonthestageofapprenticeship.Some
participantsdidonedayaweekatcollege,somedidnooff-the-jobtraining,andsome
did‘block’training.
Wefoundthatthequalityoftraining,asjudgedbyparticipants,variedconsiderablyacross
andwithinsectors.Therealsoseemedtobesomerelationshipbetweentrainingqualityand
pay,withapprenticesonthelowestwagesalsooftenreportingthepoorestqualitytraining.
Thequalityoftraininginengineeringwasgenerallyconsideredtobeverygood,reflecting
previousstudiesoftrainingqualityinapprenticeships(HughesandMonteiro2005,
Steedman2008).Engineeringapprenticeshipstendtolastmuchlongerthanapprenticeships
inthelow-payingsectors,andmostoftheparticipantshadcompletedlengthyperiodsof
college-basedtrainingbeforeenteringtheworkplaceordidregularperiodsof‘block’
training.Industrieslikeengineeringhavemoreofahistoryoftrainingapprenticesand
participantsgenerallyfeltsupportedbycolleaguesandmanagersintheirtraining.Thiswas
alsothecaseinhairdressing,wherethereisahistoryofemployingtraineesorjuniors,evenif
theyhavenotbeenreferredtoasapprenticesinthepast,althoughthequalityoftrainingin
thissectorwasmuchmorevariable.
Insomeoftheotherlow-payingsectors,particularlyretailandhospitality,formaltraining
throughapprenticeshipsisarelativelynewconceptanditwasclearthatsomeemployers
weremuchlesskeentodevotetimetotrainingorsupportingapprentices.Thishadan
impactonthequalityoftrainingapprenticesreceivedandmeantthattraininginthelow-
payingsectorswasmuchmorevariable.
Althoughmanyhairdressingapprenticesfeltthatthequalityoftrainingtheyreceivedwas
verygood,anumberfeltthatthetrainingwasminimalandtheywereoftenusedasacheap
waytodomenialtasks.
‘I’mconstantlycleaning.AllIdoiscleanandwashhairforfourdaysaweek
for£60.’(Hairdressingapprentice,female,21,Belfast)
Anumberofparticipantsinretailandhospitalityalsofeltthattheywerereceivingvery
minimaltrainingandwereessentiallycompletingtheapprenticeshiptocertifypre-existing
skillsandknowledge.
‘Iwouldn’tsayit’straining.It’saboutgettingaqualificationinthejobthat
I’mdoing.It’saboutputtingitintoaportfolio,really,togetthequalification
attheend.’(Hospitalityapprentice,female,24,Manchester)
Despitethevariationintrainingquality,participantsagreedthattherelationshipwith
assessorswasviewedasbeingparticularlyimportantandparticipantscomparedassessors
favourablywithteachers.Assessorscanactasmentors,sharingtheirknowledge,negotiating
workloadandtrainingqualitywithemployersandtestingapprenticesonkeyskills.
‘It’sgotafriendlybasistoit.They’rejustseeingifeverything’salright,if
you’reenjoyingwork…It’snotlikeateachercomingin,soit’sabetterway
toactuallytellthemhoweverything’sgoing.’(Engineeringapprentice,male,
21,Newcastle)
However,someparticipantsquestionedtheroleofassessorsandthelevelofsupportthey
provided.Thiswasmorecommoninretail,hospitalityandhairdressingandfedintosomeof
theproblemsthatparticipantsreportedaboutqualityoftraining.
‘Theydon’tseemtodoagreatdeal…IaskmybossifIneedhelp…Youask
them,whatshouldIdoaboutthisandtheysay,oh,youshouldasksomeone
atworkbecauseeverywhereisdifferent,soyoujusthavetoasksomeoneat
workratherthanrelyontheassessor.’(Hospitalityapprentice,female,24,
Manchester)
Earlyleavers:therelationshipbetweenpayandtrainingquality
AkeymessagethatemergedfromourfocusgroupinManchesterwithpeoplewholeftan
apprenticeshipwithoutcompletingitwasthecloserelationshipbetweentrainingqualityand
pay.Unlikeourothergroups,wherepayvariedconsiderably,allbutoneoftheparticipantsin
theearlyleaversgrouphadbeenreceivingtheLSC/NASrate(then£80aweek)whenthey
left.
Theirreasonsforleavingwerenotstraightforwardbutinmostcasesitwastheresultofa
combinationoflowpayandpoorqualitytraining.Someparticipantssaidtheprimaryreason
forleavingearlywaslowpaybutthiswasalwaysinthecontextofnotenjoyingtheworkand
receivingpoorqualitytraining.
‘Themainissueformewasthemoney.BythetimeIpaidchildcareIonlyhad
£40left…Ididn’twanttobeinthatfieldanyway.Ididn’treallyenjoyit,the
longhours,andIcamehomeandhadkidstosortout.’(Formerhospitality
apprentice–earlyleaver,female,24,Manchester)
Otherparticipantsweremoreexplicitaboutpoorqualitytrainingasthemainreasonfor
leavingearly.Amongalmostalltheparticipantsinthisgroup,therewasastrongfeelingthat
theyhadreceivedverylittletrainingandfewopportunitiestodevelopskillsintheworkplace,
andinsteadweresimplylefttodothemostmenialtasks.
‘Itwasjustrepeatingmyself,justdoingthesamethreethings…Youknow
whenyougetaSaturdayjob?IfeltlikeIwasjustdoingthatallweek.’
(Formerhairdressingapprentice–earlyleaver,female,19,Manchester)
‘Itwasjustcoffeemakingand[stuff]likethat.Itwasjustdataworkonthe
computer…typingincertainpeople’snamesandthencancelling,whatever.’
(Formerretailapprentice–earlyleaver,male,17,Manchester)
Afrequentcomplaintamongtheearlyleaverswasthelonghours,whichwerenotmatched
byadditionalpay.
‘Theyjustsaidtomeitwouldbeageneral9to5,butsomedaysIwasn’t
gettingouttil7pmbecauseobviouslypeople’shairdon’talwaysfinishat5,
andthenyouhavetocleanupafter.Iwasstillgettingpaidexactlythesame,
thatwastheproblem.’(Formerhairdressingapprentice–earlyleaver,female,
19,Manchester)
Overtimepaywasgenerallynotavailable,and,incontrasttoourothergroups,hairdressing
apprenticessaidtheydidnothavetheopportunitytoearntips.Thiswaspossiblybecause
theyhadallbeenintheearlystagesoftheirapprenticeships(lessthansixmonthsin)when
theyleft.
Eventhoseparticipantswhodidnotleavebecauseofpoorqualitytrainingstillreferredto
theirlowwagesasafactorindecidingtoleave.Aparticipantwholeftbecauseofdifficult
relationshipswithcolleaguesfeltthelowpaymadethesituationlesstolerable.
‘BecauseIwasn’thappy,themoneyIwasgettingwasn’tenoughtokeepme
there...ProbablyifpeoplehadbeenniceIwouldhavestayedbutbecauseI
didn’tlikeit,£80wasn’tenough.’(Formerretailapprentice–earlyleaver,
female,18,Manchester)
Someearlyleaverswerealsounhappythatsomeoftheassurancestheyhadbeengiven
aboutpayincreasesdidnotmaterialise.Itwasinterestingthatthisissuedidnotcomeupin
theotherfocusgroups.
‘Ifyouwereachievingtargets,youshouldhavebeenabletogetbonuses.
That’swhatthecollegesaidandmyemployeragreed,butitneverhappened.
Neveranythinghappenedaboutit…it[weeklypay]shouldhavegoneup
£10.’(Formerhospitalityapprentice–earlyleaver,female,24,Manchester)
Plansforthefuture
Amongcurrentapprentices,threeparticipantssaidtheywereactivelyconsideringleavingthe
apprenticeshipearly,orhadinthepast.Allthreewereinhairdressing;onewasearning£60
andtheothertwowereearning£80.Thissmallgroupincludedboththeapprenticeswho
appearedtobeeligibleforthenationalminimumwagebutwerenotreceivingit.Their
reasonsforthinkingaboutleavingweresimilartothosegivenbytheparticipantsintheearly
leaversgroup:acombinationoflowpayandpoorqualitytraining,butwithanemphasison
thequalityoftraining.
‘[It’s]theworkandthemoney.Iliketheapprenticeshipandthetraining,but
I’dratherdomoretraining,that’swhatI’mtherefor.Idon’twanttobea
slave.’(Hairdressingapprentice,male,17,Cardiff)
However,allthreewerekeentostayinhairdressing,andsaidtheywouldtransfertoa
differentemployerandtrytofinishtheirapprenticeshipifpossible.
Therestoftheapprenticeswhotookpartinourfocusgroupsallintendedtofinishtheir
apprenticeships.Participantshadarangeofideasaboutwhattheymightdooncetheyhad
completedtheirapprenticeship:
•Continueworking:Justlessthanhalf(19)ofthecurrentapprenticeswespoketo
plannedtocontinueworkingoncetheyhadcompletedtheirapprenticeship.Ofthis
group,justoverhalfplannedtostaywiththeircurrentemployer,whilejustunderhalf
wantedtomovetoadifferentemployer.Thiswasmainlybecausepromotion
opportunitieswerelimitedintheirorganisationortheyknewofemployerswhooffered
betterpayandconditions.
•Apprenticeshipatahigherlevel:Aboutafifthofparticipantswantedtostartan
apprenticeshipatahigherlevelwhentheyhadcompletedtheircurrentcourse.
•Travelorworkabroad: Afurtherfifthplannedtotravelorworkabroad.Thisoptionwas
verypopularamongparticipantsinMargateandBelfast.Hairdressinginparticularwas
seenasanoccupationthatcouldbeeasilydoneabroad,withplentyofopportunitiesin
countrieslikeAustraliaandNewZealand.
•Collegeoruniversity:Asmallernumberofparticipants(sixintotal)expressedan
interestincompletingacollegeoruniversityqualification.Thiswasparticularlypopular
amongengineeringapprentices.Participantsfelttherewereopportunitiestousetheir
apprenticeshipasaroutetouniversity,bydoingHigherNationalCertificates(HNCs)or
foundationdegreesinmanycases.
Inoursurvey,over90percentofcurrentapprenticesinEnglandintendedtofinishtheir
apprenticeship.Thesmallnumberofrespondentswhosaidtheymightnotcompletetheir
apprenticeshiphadarangeofreasonsandnooverallpatternemerged.
•Apprenticesweregenerallyunhappyabouttheirpayandrecognisedthatitwas
relativelylow,comparedwithboththeir‘qualified’colleaguesandtofriendsinjobs
withouttraining.
•Apprenticesinthelowerpayingsectors,althoughtoalesserextentinhairdressing,
weremorelikelytofeelthattheydidasimilarkindandamountofworkastheirnon-
apprenticecolleagues.Theywerethereforelesstolerantofthelowerapprenticewage.
Thisraisesimportantquestionsaboutthequalityoftrainingandthedifferent
treatmentofapprenticeandnon-apprenticestaffbyemployersinsomelow-paying
sectors.
•Participantsinengineering,andinhairdressingtosomeextent,weremorelikelyto
acceptlargerpaydifferentialsbetweenapprenticesandfullytrainedworkers.These
sectoraldifferencesmayreflectdifferencesintrainingprovisionandlength,and
historicaldifferencesintheuseofapprentices.
•However,formostapprentices,factorsbesidepay–primarilyjobsatisfactionandthe
promiseofhigherearningsinthefuture–weresufficienttomotivatethemtocomplete
theirtraining.
•Wherelowpayhadaroleincausingyoungpeopletoleaveapprenticeshipsearly,orto
considerdoingso,thiswasprimarilybecauseitwaslinkedtopoorqualitytrainingand
negativeexperiencesintheworkplace.Paywasrarelythesingleorprimaryfactorin
participants’decisiontoleavetheirapprenticeship,althoughamongtheyoungpeople
wespoketothereseemedtobearelationshipbetweenlowpayandpoorquality
training.
•Trainingqualityvariedacrossandwithinthedifferentsectors,withalltheengineering
apprenticesandmosthairdressingapprenticesreportinggoodqualitytraining.Training
qualitywaslessfavourablyreportedamongapprenticesinretailandhospitality,
althoughsomeparticipantsinthesesectorswerepositiveabouttheirtraining.
4.Youngpeople’sviewsonanationalminimumwageforapprentices
Inthischapterweconsiderindetailtheattitudesoffocusgroupparticipantstowardsthe
possibilityofanationalminimumwageforapprentices.Wealsolookattheirviewsonthe
currentpayarrangementsforapprentices,andtheirawarenessofhowtheminimumwage
exemptionsoperateforapprenticesatthemoment.
Currentapprenticepayarrangements
Webeginthischapterbylookingatparticipants’understandingof,andviewson,current
apprenticepayandtheexistingNMWrules.
Awarenessofexistingpayarrangementsforapprentices
Participantsinourfocusgroupsweregenerallyawareofthecurrentrulesaround
apprenticeshippay,andawarenessandunderstandingoftheminimumwageexemptionswas
high.
InEngland,almosteveryparticipantwasawareoftheNAS/LSCminimumandawarenessof
theincreaseinthisratewhichcameintoforceon1August2009wasalsohigh.Wefoundno
casesofapprenticesinEnglandreceivingbelowthisrate.OutsideEngland,manyparticipants
werealsoawarethatapprenticeswerenotentitledtoanyminimumpayment.
SomeparticipantshadsomeunderstandingoftherulesgoverningentitlementtotheNMW
atage19.However,ingeneraltherewaslessclarityaboutwhentheNMWappliesto
apprenticesandmanyparticipantswereunclearaboutthepreciserulesonageandduration
thatgoverntheNMWeligibilityforapprentices.Asalreadydiscussed,twopeoplewerenot
receivingtheNationalMinimumWagealthoughtheyseemedtobeentitledtoit,andthe
lackofclarityabouttheageanddurationrulesseemedtobethecause.Thisconfusionwas
alsopickedupininterviewswithemployersandisdiscussedinthenextchapter.
Attitudestowardstheexistingage-relatedNMWrates
Manyapprenticeswerestronglyopposedtotheexistingage-relatedrates.Theyfeltthatit
wasmeaninglesstodistinguishbetweenemployeesonthebasisofage,particularlybecause
intheirsectors,agedidnothaveanimpactonthetypeofworkortheworkloadthatwas
undertaken.
‘Idon’tunderstandwhat’supwiththeagething.Ifyou’re16you’restill
goingtobedoingthesameasthe18yearolds.Ithinkifyoudothesame
workyoushouldallbegettingthesamesortofwage…it’snotlikewe’renot
earningourmoney.’(Hairdressingapprentice,female,17,Margate)
However,someparticipantsfelttherewerelegitimatereasonsfortheexistenceofalower
NMWforyoungerworkers,althoughnotnecessarilyinlinewiththecurrentarrangements.
‘There’scertainhoursyoucan’tworkifyou’reunder18.Youcan’tworkpast
midnight,Ithink.Mymateusedtoworkinapizzaplaceandhecouldn’twork
pastmidnightsohecouldn’tlockup,soyou’relessvaluabletothem.So
maybethe18bracketisfairenoughbutIdon’tunderstandthedifference
after18.’(Hospitalityapprentice,male,18,Manchester)
Anationalminimumwageforapprentices:the‘moral’arguments
Participantsgenerallyhadtwoapproachestotheirviewsonaminimumwagefor
apprentices:a‘moral’argument(forandagainst)andthepracticalimpacts(positiveand
negative).Inthissection,wediscussthemoralargumentssurroundinganapprenticeship
minimumwagebeforemovingontoconsiderparticipants’thoughtsaboutthepractical
implications.
Intheremainderofthissection,itisimportanttonotethatparticipantstendedtoassume
thataminimumwageforapprenticeswouldbehigherthanthecurrentNAS/LSCrateor,
outsideEngland,thelowestweeklywagesreceivedbymembersofthegroup,evenwhenwe
explainedthatthismightnotbethecase.Thisassumptionclearlyinfluencedtheirviewsona
minimumwageforapprentices.
‘Decentpayforadecentday’swork’
Themostcommonargumentfortheintroductionofaminimumwagewasamoralone:
apprenticesworkhardandcontributetothesuccessofanorganisation,andsodeservea
reasonablewageinreturn.
ThisviewwascloselylinkedtotheideathatapprenticesshouldreceivethecurrentNMW
rates,ratherthanaspecific(andlower)apprenticerate,aviewwidelyheldbyparticipants,
exceptinengineering.Thisbeliefwasstronglyrootedintheideathatapprenticesdothe
sameamountandtypeofworkasemployeesnotintraining,andwasparticularlyprevalent
amongapprenticesinthelow-payingsectors.
‘[Itshouldbe]theminimumwagebecausethey’redoingtheexactsame
hoursandtheexactsameworkassomebodyelse.Whyshouldtheygetpaid
anyless?’(Retailapprentice,male,20,Margate)
Althoughitisnotpossibletoverifythatisthecaseamongtheyoungpeoplewespoketo,if
itis,thenaswepointedoutinthepreviouschapter,itraisesquestionsabouttheamountof
trainingavailabletoapprenticesandthedifferentrolesofapprenticeandnon-apprentice
staff.
Infact,manyparticipantsarguedthatapprenticesdomoreworkthanemployeeswhoare
nottraining(includingthosewhoalreadyhaveaqualification).Thecombinationofworking
andstudyingwasthoughttocreateextrapressuresonapprentices,particularlywhen
apprenticeshadtocompletewrittenworkathomeoutsideofworkhours.
‘Apprenticesareworkingjustashardandhaveawholepileofworktodo
whentheygethome.Itisactuallyreallyhard…Theyshouldatleastgetwhat
everyoneelseisgetting.’(Earlyyearsapprentice,female,21,Cardiff)
Inthefocusgroups,participantswerechallengedtothinkabouthowtheywouldfeelonce
theyfinishedtheirapprenticeshipiftheyfoundthatapprenticeswereonsimilarpay.
However,anumberofparticipantsmaintainedthattheywouldbehappywithsucha
situation.Thiswaspartlybecauseparticipantsfeltthatqualifiedstaffwerelikelytobe
earningabovetheNMWanywayandpartlyforethicalreasons.
‘Idon’tthinkyoushouldbegrudgesomebodysomethingthatyouwantfor
yourself.IfIwouldn’tworkfor£60aweek,Iwouldn’twantsomebodyelseto
doit.Iwouldbehappythatsomeonewasgettinggoodmoneyandthat
thingswereimproving.ButIthinkasaqualifiedstylist,you’reprobably
earningaweebitmorethantheminimumwageanyway.’(Hospitality
apprentice,male,26,Belfast)
‘Traineesshouldgetlessthanqualifiedstaff’
However,someoftheyoungpeoplewespoketorecognisedthathavingtraineesand
qualifiedstaffonthesamepayratescouldbeproblematic.Anumberofparticipantsargued
thatpaydifferentialsshouldcontinuetoreflectdifferencesinexperienceandqualifications.
Thisviewwasparticularlystrongamongengineeringapprentices,perhapsbecausethe
lengthandqualityoftraininginvolvedinengineeringapprenticeshipscreatesagreater
distinctionbetweentraineesandqualifiedstaff.
‘Iunderstandthelowwageatthestartbecauseifyoucompareyourselfto
someonethat’sbeendoingitforthirtyyears,youcannotexpecthalfhispayif
youcannotdohalfhiswork.’(Engineeringapprentice,male,21,Newcastle)
Despitethesereservations,allparticipantsremainedinfavouroftheprincipleofanational
minimumwageforapprentices.Disagreementonlyaroseoverthelevelatwhichsucha
minimumshouldbeset.
Anationalminimumwageforapprentices:participants’perspectivesonthe
potentialimpacts
Participantshadarangeofviews,sometimescontradictory,onhowanationalminimum
wageforapprenticesmightimpactontheprovisionofapprenticeshipsacrosstheUK.
Positiveimpacts
Thepotentiallypositiveimpactsthatparticipantsdiscussedcentredontheincreaseinthe
numberofyoungpeoplewantingtodoapprenticeshipsandhighercompletionrates.
Increaseinnumberofyoungpeoplewantingtodoapprenticeships
Manyparticipantsfeltthatanationalminimumwageforapprenticeswouldencouragemore
youngpeopletodoapprenticeshipsandthiswasgenerallythoughttobepositive.Thisview
wasinformedbyafeelingthatgovernment(s)wouldlikemoreyoungpeopletodo
apprenticeshipsandthatlowapprenticewagescurrentlydiscouragemanyyoungpeople
fromstartingapprenticeships.
‘Ithinkifthey[thegovernment]didmakeitmorebeneficialandmore
financiallyappealingtoyoungpeople,youknow,givethemadecentwagefor
adecentday’swork,Ithinkmorepeoplewoulddoit.’(Retailapprentice,
female,24,Belfast)
Althoughmostparticipantsunderstoodwhytheirpaywaslowerthanpeersinjobswithout
training,someparticipantsfeltthatthiscoulddetersomeyoungpeoplefromstarting
apprenticeships.
‘Ithinkthat’swhatputspeopleoff.Theysay,I’mnotdoinganapprenticeship
for£40aweekwhenIcouldgetajobforlike£200.’(Engineeringapprentice,
male,20,Newcastle)
Increaseincompletionrates
Manyparticipantsalsothoughtthatanationalminimumwageforapprenticeswouldhelpto
improvecompletionrates,whicharelowcomparedtomanyothervocationalqualifications
(OfficeforNationalStatistics2009).Again,thiswasofteninthecontextofthehigherwages
availableinjobswithouttraining.
‘Itdoesgivethemanextraincentivetostickattheircourses.Peoplewillgoin
anddotheircoursesfortwoorthreemonthsandIwouldsaymorethan50
percent,whydidyouleave?Becauseofthemoney.Ithinktheyseetheir
matesearning£100,£150aweekandthey’regoingouttoclubsandthey
[theapprentice]can’tgoout.’(Hospitalityapprentice,male,26,Belfast)
Amongtheearlyleaverswespoketo,therewassomeagreementthatahigherwagemay
haveencouragedthemtocompletetheirapprenticeships,eveniftheotherelementsofthe
courseremainedofconcern.
‘Youwouldputupwithitmoreifyougottheminimumwagebecauseyou
wouldbegettingmoremoney.’(Formerhospitalityapprentice–earlyleaver,
male,20,Manchester)
However,otherearlyleaversweremoreconcernedaboutthequalityoftheapprenticeship
programmethanthepay,andsohigherwageswouldhavehadlesseffectontheirdecision
toleaveearly.
‘Iftheyletyoudomore,you’dfeellikeyouwantedtostaythere.Otherwise,
it’sjustthesamemonotonousjobdayin,dayout.Forme,themoneywasless
important.’(Formerhospitalityapprentice–earlyleaver,female,21,
Manchester)
Negativeimpacts
Participantsalsofeltthataminimumwageforapprenticescouldhavesomenegative
impacts,bothforthemselvesandforyoungpeoplethinkingaboutapprenticesinthefuture.
Reductioninthenumberofapprenticeshipplaces
Thereactionofemployerstotheintroductionofaminimumwagewasacommonissue
amongparticipants,withsignificantconcernthatemployerswouldcutbackonthenumber
ofapprenticeshipplacestheyoffer.
‘Ithinkifyoubroughtinaminimumwage[forapprentices],you’remorethan
likelytoseealotofemployersreducetheirapprenticesbecausetheycan’t
affordthem.’(Retailapprentice,male,23,Glasgow)
Asmallnumberofcurrentapprenticesfeltthattheirownjobwouldbeatriskifaminimum
wagewasintroducedforapprentices.
‘Ithinknextyearmybosswilltellmejusttogowhensheknowsshehasto
paymeminimumwage.Ithinkshe’lljustgo,“seeyoulater”.’(Hairdressing
However,someparticipantsfeltthatemployerswouldbereluctanttoreducethenumberof
apprenticeshipplacesbecauseapprenticesbringadditionalincomeintoabusiness,albeit
indirectly.
‘Withapprentices,youkeeptheshopgoing.That’showthey[stylists]make
theirmoney,becauseonceweshampoo,theycanhaveanotherclientin,soit
doeskeepthembusiersotheycanearnmoremoney.’(Hairdressing
Moreintensecompetitionforapprenticeshipplaces
Extracompetitionforapprenticeshipplacesmaynotalwaysbenegativeifitleadstoabetter
fitbetweentheindividualandanemployer.However,anumberoffocusgroupparticipants
wereconcernedabouttheadditionalcompetitionthataminimumwagemaycreatefor
youngpeoplelikethem.Engineeringapprenticesinparticularwereawarethat
apprenticeshipsareapopularoptionandanythingthatmightincreasetheirpopularitycould
havetheeffectofincreasingcompetitionforplaces.
‘Aloadofpeoplearetryingtodothemanywayandtheniftherewasa
minimumwage,alotmorepeopletryingtodothemandtheremightnotbe
asmanyplaces.’(Engineeringapprentice,male,20,Newcastle)
Someengineeringapprenticesalsofeltthattherelativelylowstartingwagesfor
apprenticeshipshelpedtomaintainthequalityandcommitmentofapprentices.One
participantinparticularfeltthatanationalminimumwagecouldattractlesscommitted
youngpeopleintoapprenticeships.
‘Ithinkit’sawayofwhittlingoutalltheweakeroneswhowanttheirmoney
straightawayandkeepingtheonesthatwanttobeatradesman.It’sawayof
keepingtheminterested,sayingyou’llgetmoremoneyasyougothroughso
you’rekindoflike,oh,Iwanttogettothenextstageandgetmoremoney.’
Impactonthequalityoftraining
Afurtherconcernamongsomeapprenticeswasthepotentialimpactofanationalminimum
wageontheprovisionoftrainingbyemployers.Again,itwasengineeringapprenticeswho
wereparticularlymindfulofthispossibility,perhapsbecausetheycurrentlyenjoyhigh-
qualitytrainingthattheydonotwanttosacrifice.
Engineeringapprenticeswereconcernedthatemployersmightwanttoreducetheamountof
timegivenovertotrainingwithinaworkingweek.
‘Ifthey’vegottopay,they’llwantmoretimeofthem[apprentices]working
forthem[thecompany]ratherthanlearning.’(Engineeringapprentice,male,
19,Newcastle)
Anumberofparticipantsintheengineeringgroupalsofeltthatemployersmighttryto
reducethelengthofapprenticeshipsinordertocuttrainingcosts,andthatthiscouldhavea
negativeeffectonfutureemployment.
‘Thecompanythatyouendupwith,aretheygoingtowantarushed
apprenticewhodoesn’tknowwhatthey’redoingasmuchassomeonewould
haveifthey’ddonefouryears,someonewhocutscorners?’(Engineering
Anationalminimumwageforapprentices:participants’viewsonhowit
mightwork
Inthefocusgroups,wediscussedanumberofdifferentoptionsforhowanationalminimum
wageforapprenticesmightwork.
Anhourlyorweeklyrate?
Therewaswidespreadagreementthatapprenticesshouldbepaidhourlytoreflectthe
differingamountofworkthatapprenticesdo.
‘IthinkitshouldbehourlyinsteadofweeklybecauseIprobablyworkless
hoursthanyou[anotherparticipant]becausemysalon’sonlyopenfouranda
halfdaysaweek,whereasyoursisopenfivedays.’(Hairdressingapprentice,
female,17,Margate)
Someparticipantsalsofeltthatanhourlyratewouldencourageapprenticestoworktheirset
hoursorevenadditionalhours.Therewasafeelingamongsomethatanhourlyratedoesnot
provideasufficientincentiveforsomeapprenticestoworktheirsethours.
‘Itseemsasifthese[otherfocusgroupparticipants]areturninguptothe
salonandtheycoulddonothingandknowthatthey’restillgettingtheir£80.
Butifthey’regoingandthey’regettingasetamountofmoneyforthehour,
hejustsaidhewouldturnupatanytime[towork]becauseheknewhe’dbe
gettingpaidanyway.’(Formerhairdressingapprentice–earlyleaver,female,
20,Manchester)
Aratebasedonage,abilityoryear?
Notsurprisingly,givenparticipants’uneasewiththecurrentage-relatedNMWrates,there
wassupportforanapprenticeshipminimumwagebasedprimarilyonqualificationlevelor
ability,ratherthanage.Someparticipantshadexperienceofworkingwithlessablebutolder
colleagueswhowerereceivinghigherpay.
‘Inmysalon,thisgirlhadcomein.Shewasn’tatmystandardbutshewas
aboutthreeyearsolderandIfoundoutshewasgettingpaid£100more.I
confrontedmybossandhesaidit’sbecauseshe’solderthanyou.Ithought
thatwasreallybad,reallybadthattheycoulddothat.’(Hairdressing
apprentice,female,20,Cardiff)
Anumberofparticipantsalsosupporteddifferentratesdependingontheyearofthe
apprenticeship.Participantsintheearlyleavergroupinparticularfeltthatanincreaseinpay
inthesecondyearcouldencourageapprenticestocompletetheircourse.
‘Theycould[makeitsothat]inyourfirstyearyougetasetamountandthen
whenyougointoyoursecondyear…youshouldgouptoanotherrate–
ratherthanbeingon£80fortwoyears,maybe£100forthefirstyearand
then£130forexampleinthesecondyear.Maybethat’swhatweshoulddo
withminimumwage,putitontoyoursecondyear,sothatwhenyougointo
yoursecondyear,youhavetohaveminimumwage.’(Formerhospitality
apprentice–earlyleaver,female,24,Manchester)
Thisquotealsoindirectlyhighlightsalackofknowledgeamongsomeparticipantsabout
howtheminimumwageexemptionsoperate.Thisparticipantwas23yearsoldwhenshe
startedherapprenticeshipandsowouldhavebeeneligiblefortheminimumwageafterthe
firstyearanyway,butshewasnotawareofthis.Thismaybebecausesheleftwithinsix
monthsofstarting,butsheclearlywasnotawareofthepotentialincreasesinpayforolder
apprentices.
Shouldtrainingbepaid?
Mostparticipantswhoreceivedoff-the-jobtraininginacollegeortrainingcentrealso
receivedaweeklywage,sotheydidnotfeelthattheirpaywasaffectedbytheamountof
off-the-jobtrainingtheyundertook.Themajorityofparticipantswhowerepaidanhourly
rateoramonthlysalaryreceivedlittleornooff-the-jobtraining,sotheirpaywasnot
affectedbytheamountofoff-the-jobtrainingtheydid.
Formostapprentices,therewasnorealdistinctionbetweenon-the-jobtrainingandworking.
Wehavealsoseenelsewhereinthisreportthatparticipantsinlow-payingsectorstendedto
feeltherewaslittledistinctionintheworkandworkloadofapprenticesandnon-apprenticed
staff.Thesefactorsmadeitdifficultforparticipantstothinkabouthowtrainingtimeshould
bedealtwithunderanationalminimumwage.
Someparticipantsfeltthatevenformaloff-the-jobtrainingcouldnotbeseparatedfromthe
work-basedelementsoftheirapprenticeshipandshouldthereforebepaid.
‘IspendadaytrainingandIstillclassthatasworkbecauseI’mstilldoinghair.
I’mstilldoingsomethingtodowithhairanditisbasicallyafulldayofwhatI
doatwork.SoIdon’tseehowcollegeisanydifferent.’(Hairdressing
Inothercases,apprenticesdidtheiroff-the-jobtrainingwhentheirworkplacewasclosed,so
theyworkedthesamehoursasotheremployees.Apprenticesinthissituationwerenot
necessarilyarguingthattheirtrainingtimeshouldbepaid,onlythattheirpayshouldnotbe
reducedtotakeaccountoftimespenttraining.
Reformingapprenticepay:policyoptionsputforwardbyparticipants
Aswellasdiscussinghowaminimumwageforapprenticesmightaffecttheprovisionof
apprenticeshipplaces,focusgroupparticipantsalsocameupwiththeirownsuggestions
abouthowpayarrangementscouldbeimprovedmoregenerally.Mostoftheoptionswere
putforwardinthecontextoftheneedtominimisethepotentiallynegativeconsequencesof
introducinganationalminimumwageforapprentices.Mostoftheseoptionsareclearly
beyondtheremitoftheLowPayCommission,buttheydocontainsomeinterestingideas
thatcouldformpartofapackageofmeasuresifapprenticepaywastobebroughtunderthe
NMWframework.
Governmentwagesubsidies
Anumberofparticipants,particularlyinthegroupsheldinBelfastandNewcastle,suggested
thatgovernmentcouldcontributetoemployers’wagecostsforapprentices.Itwasfeltthat
thiscouldincreasethenumberofapprenticeshipplacesandimprovethequalityoftraining
provided.
‘Ithinkifthegovernmentsaidtoemployershere’safinancialincentivefor
youtotakeonmoretrainees,they’dbemorehappytodoit.Andthey’dbe
lettingtheirtraineesdostuffthat’smoresuitablefortheirqualification.
Insteadofcleaning,they’dbedoingpracticalthings,like,I’llshowyouhowto
cutabasiccut,I’llshowyouhowtoblowdry,stufflikethat,anditwouldbe
abettertrainingsystem.’(Retailapprentice[discussinghairdressing
apprenticeships],female,24,Belfast)
Apprenticesinengineering,perhapsmindfuloftherelativelyhighcostsofapprenticeship
traininginthissector,wereparticularlykeentoseegovernmentsupportforapprenticepayif
anationalminimumwageweretobeintroduced.
‘Isitgoingtobegovernmentfundedornot,theminimumwage?Soifit’s
goingtobefromthecompanythenIdon’tthinkthey’ddoit.Butifitwasa
government-fundedminimumwageforthefirstyearthentheywouldn’thave
topayanythingforit,soIdon’tseewhytheyshouldn’t.’(Engineering
Payincreaseslinkedtoperformanceorqualification
Aswellasanationalminimumwageinsomeform,manyapprenticeswerekeentosee
regularincreasesinapprenticeshippay,andmadesuggestionsforhowthiscouldwork.Some
suggestedincreaseslinkedtogainingaparticularqualification,forexample,ifayoung
personcompletedaLevel2apprenticeshipandwasstayingwiththesameemployertodoa
Level3apprenticeship.
‘Theycouldhaveapayscaleaswellsoitgoesonwhenyougetanother
qualification.Itgivesyouthatdrivebecauseotherwiseyoufallintothinking
thatyourpaywillnevergoupsowhat’sthepoint…[It]wouldn’tjustbean
incentivebutitwouldalsobearewardfordoingaqualification,whichiswhat
thegovernmentwantseveryonetodo.’(Hospitalityapprentice,female,24,
Manchester)
Otherparticipantssuggestedmoreregularincreaseswithinapprenticeships,perhapslinked
toachievingparticularmodulesortargetswithintheNVQqualification.
‘Everymonthorsoyou’relearningnewstuffandyou’vegotmoreknowledge,
soitshouldbeonlyfairthatthey’repayingyoualittlebitmoreforthelittle
bitmorethatyoulearn.Becausetobefair,Iunderstandthelowwageatthe
start.’(Engineeringapprentice,male,21,Newcastle)
Someparticipantsalsofeltthatbonusesshouldbelinkedtoabove-averageperformance,
particularlyasapprenticeshipsarecompletedatparticipants’ownpace.
‘Ithinktheyshouldsetupasystemwhereyougetincentivesfordoingstuff
…Say,ifyoureachacertainpointbeforeotherpeopleonyourcourse,ifyou
reachatargetfirst[youshouldgetabonus].’(Formerhairdressingapprentice
–earlyleaver,female,19,Manchester)
Thisreflectsthefactthatparticipantsgenerallyacceptedalowstartingsalary,giventheir
lackofexperienceandskill,butexpectedtoseeregular(althoughnotnecessarilylarge)
increases.Thisisparticularlyimportantinthecontextoflowcompletionrates.Italsoreflects
thepreferenceforminimumwageratesbasedonabilityorqualificationlevelratherthanage.
Inaddition,manyparticipantswereawarethatyoungpeoplereceivingtheEMAcouldclaim
abonusforreturningforthesecondyearofacollegecourse,andtheyfeltthatasimilar
systemshouldexistforapprentices.
Completionbonusesforapprentices
Itwassuggestedbysomeparticipantsthatfinancialbonusesforcompletingbothstages
withintheapprenticeshipandtheapprenticeshipoverallcouldalsoimprovecompletionrates.
However,thissystemappearedtobeoperatinginBelfastalreadyandtherewassomedebate
aboutitseffectiveness.Onepersonhadonlybecomeawareofthebonustowardstheendof
hiscourseandfeltthatitwouldnothavemotivatedhimtofinishthecourseifhehadknown
aboutitearlier.
Probationperiodsforapprentices
ParticipantsintheNewcastlegroupsuggestedaprobationperiodforapprenticesoftwoor
threemonthsduringwhichanationalminimumwagewouldnotbeapplicable.Thiswould
allowemployersto‘testout’anapprenticewithouthavingtopaythemthenational
minimumwagerate.However,theyalsorecognisedthatsomeemployerscouldmisusesuch
asystem.
‘Thereshouldbetwoorthreemonthsbeforehandtoseewhatthey’re[an
apprentice]likebecauseifthey’repayingthemstraightawaytheminimum
wageandthey’re[notverygood]…You’dbeabletoproveyourselfthatyou
candothejob.Butsomecompanieswilljustpaythemthatlittleamountand
say,oh,we’renothappywithyouandgetanotherpersonin…cheaplabour.’
ThismodelisalreadyusedinanumberofEuropeancountriesandisthoughttobeatleast
partiallyresponsiblefortheirhighercompletionrates,becauseitallowstheyoungpersonto
tryoutanapprenticeshipbeforestartingitinearnest(Steedman2008).
•Ourfocusgroupparticipantsweregenerallyawareoftheminimumwageexemptions
forapprentices,butlessclearaboutwhentheNMWappliestoapprentices,for
example,whenapprenticesturn19.
•Participantshadconcernsaboutminimumwageratesbasedonage;andaboutweekly
minimums.Participantspreferredratesofpaybasedonability,qualificationoryearof
apprenticeship;andtherewasastrongpreferenceforhourlypay.
•Therewasdisagreementaboutwhetheritwaslegitimateforapprenticestobepaidthe
sameasfullytrainedstaff.Apprenticesinengineeringandhairdressingweremorelikely
tofeelthatapprenticesshouldreceivealowerwage;apprenticesinearlyyears,
hospitalityandretailweremorelikelytofeelthatapprenticesshouldbepaidthesame
rateasqualifiedstaff.Thisseemedtoreflectalesscleardistinctionbetween
apprenticesandotherstaffinsomeofthelow-payingsectors.
•Therewassomedebateaboutwhethertheincreaseinyoungpeoplewantingtodo
apprenticeships,whichwouldbethelikelyresultofaminimumwageforapprentices,
wouldbepositiveornegative.Participantswerealsoconcernedabouttheimpacton
employersandontheprovisionoftraining.
•Therewassomeevidencefromourfocusgroupsthataminimumwageforapprentices
couldhaveapositiveeffectoncompletionrates.However,otherfactors,particularly
theavailabilityofregularpayrises,couldbeequallyimportant.Formanyparticipants,
regularpayrisesweremoreimportantthanthelevelofthestartingwage.
•Participantshadanumberofsuggestionsforinnovativewaysthatpayarrangements
forapprenticeshipscouldbeimproved,mostofwhichwereaimedatsupporting
employerstoofferapprenticeshipsorincreasingcompletionrates.
5.Employers’perspectivesonapprenticepay
Inthischapter,wesetoutourfindingsfromthe12interviewswecarriedoutwithemployers
inlow-payingsectors.Westartbybrieflyexaminingtheircurrentpracticesaroundapprentice
payandtheirviewsoncurrentarrangementsforapprenticepay.Wethenconsidertheirviews
onaminimumwageforapprentices.
Profileoftheemployers
Weinterviewed12employerswhonormallyemployapprentices.Eightwerehairdressing
salonmanagersandfourwerenurserymanagers.TheywerelocatedacrosstheUK,including
Wales,Scotland,London,NorthWestEngland,Yorkshire,andSouthEastEngland.Theywere
allrelativelysmallbusinesses,eithersingle-siteorasmallchainofbetweentwoandfive
sites.
Thenumberofapprenticesemployedrangedfromoneto30,withmostemployingbetween
oneandfiveatanyonetime.Apprenticeswererecruitedthroughamixtureofroutes,
sometimesdirectlythroughtheemployerandsometimesthroughtrainingproviders.Allof
theemployerswespoketoactivelyrecruitedapprenticesratherthanemployingpeoplefirst
andenrollingthemonanapprenticeshiplater.
Currentpayarrangementsforapprentices
Inthissection,webrieflysetoutthearrangementsforapprenticepayusedbytheemployers
weinterviewed.
Apprenticepay
Eightofthe12employersweinterviewedusedtheexistingminimumwageexemptionsfor
theapprenticestheyemployed.Thiswasparticularlythecaseinhairdressing,withsevenout
ofeightsalonmanagerswespoketousingtheexemptionsinsomeway.Oftheseemployers,
sixpaidapprenticesatoraroundtheNAS/LSCcontractualminimumof£95aweek.Theone
salonmanagerwespoketowhowasnotbasedinEnglandpaidapprentices£90aweek,so
veryclosetotheLSC/NASminimum,althoughhealsogaveapprenticesafreebuspass.
Onesalonmanager,inSurrey,paidslightlyabovethe£95levelfromthebeginningof
apprenticeships:here,apprenticeswerepaid£106.50aweekforthefirstthreemonths,
increasingto£113.60aweekafterthreemonths,withfurtherincreaseslinkedto
performance5.Thesalonmanager’srationalforpayingabovetheminimum£95levelwasto
attractmorecommittedapprentices:
‘Ifeelit’sworthpayingalittlebitmoretogetsomeone,togettheir
commitmentaswell,Ithinkitacknowledgesthatpeopleworkhardeach
week.’(Salonmanager,Surrey)
InoneLondon-basedsalon,apprenticeswerepaid£150aweek,wellabovetheLSC/NAS
minimum.Thesalonmanagerwasawareofthisbutfeltitwasappropriategiventhesalon’s
centralLondonlocation:
‘You’vegotfarescomingintotownthataren’tcheap,they’vegottoeatand
they’vegottobesupportedbytheirparentsifyou’repayingthem£95a
week.Sowejustmadethedecisiontopaythem£150,whichisobviouslya
lotmore[thanthe£95minimum].Wevaluethemandwe’rekindoffairlike
that.’(Salonmanager,London)
5.Theseminimumratesarestillsignificantlybelowtheequivalentoftheminimumwagefor16and17
yearoldsfora40-hourweek–£142.80inNovember2009.
Amongthefouremployersweinterviewedintheearlyyearssector,useoftheminimum
wageexemptionswaslesscommon.Oneemployer,inEdinburgh,usedtheexemptionsand
paidapprentices£100aweek.Intheotherthreesettings,therewasnospecificpayratefor
apprenticesandapprenticeswereonthesamepayscaleasotherstaff.Intwosettings,in
NorthWalesandNorthYorkshire,‘unqualified’staff(thosewithoutaLevel2qualification)
startedontheage-relatedNationalMinimumWagerates,includingapprentices.Inone
settinginGlasgow,unqualifiedstaffwerepaidconsiderablyabovethis–£6.50anhour
regardlessofage.ForapprenticesdoingaLevel3course,thisincreasedto£6.95.
Workingandtraining
Inthemajorityofsalonscoveredbyourinterviews,apprenticesreceivedoneday’soff-the-
jobtraining.Insomecases,thiswasonsiteatthesalonbutwiththesalonclosedtoordinary
customers,andinothercasesoff-the-jobtrainingwasdoneatacollegeortrainingcentre.In
onesalon,thecurrentapprenticespenttwodaysatcollegebecausesheneededextra
support,andinanothersalon,apprenticesonlydidaday’soff-the-jobtrainingoncea
fortnight.
Trainingarrangementsintheearlyyearssettingsweremorevaried.Intwosettings,therewas
nooff-the-jobtraining;inonesetting,apprenticeswenttoatrainingcentreforoneday
onceamonth;andanother,apprenticesdidaneveningclassonceaweek.
Amongalltheemployerswespoketo,allapprenticeswerepaidaweeklyamount,sotheir
wageswerenotdirectlyaffectedbytheamountofoff-the-jobtraining.
Overtime
Intwoearlyyearssettings,apprenticeswereabletoaddtotheirbasicpaybydoing
overtime,whichwaspaidattheage-relatedNationalMinimumWagerates.Intheother
workplaces,bothsalonsandearlyyearssettings,apprenticesreceivedtimeoffinlieuifthey
workedextrashiftsratherthanadditionalpay.Hairdressingapprenticesweregenerallynot
paidovertimeiftheyworkedextrahours,forexampleattheendoftheday,althoughone
salonpaidapprenticesextraiftheyworkedonSundays.
Tips
Inalleighthairdressingbusinessescoveredbyourinterviews,apprenticeshadthe
opportunitytoearntheirowntips.Insomesalons,thishappenedrightfromthestart,
becauseapprenticeswerecomingintocontactwithclientsalmostimmediately,forexample
bywashingtheirhair.Inothercases,apprenticesinthefirstsixor12monthsoftheircourse
didnothavetheopportunitytoearntipsbecausetheywerenotworkingdirectlywith
clients.Inallcases,tipswereadditionaltotheirminimumweeklyearningsdescribedabove.
Payprogression
Mostoftheemployersweinterviewedhadsomesystemofpayprogressionforapprentices.
Inmostcases,thiswasbasedontheindividual’sprogressand,inhairdressing,howmuch
additionalincometheywerebringingintothebusiness.
‘Saytheytook£50fortheweek,iftheydidtwoblowdries,andthiswas
constant…wewouldactuallyraisethemuptosay£170[aweek,from£150]
togivethema£20increase…It’suptothem,iftheyshowwillingnessand
they’regoodtheygouptheladder.’(Salonmanager,London)
Inanothersalon,apprenticesreceivedincreasesof£10aweekeveryfewmonthsdepending
ontheirprogress.Onesalonhadaclearwagestructurelinkedtocoursestage:apprenticesin
yearonewereonthe£95rate,increasingto£100aweekinyeartwoand£105aweekin
yearthree.
Intheearlyyearssettings,therewasaclearerwagestructurelinkedtoqualificationlevel,job
titleand,insomecases,lengthofservice.Wageincreaseswerenotgenerallylinkedto
individualperformanceandsoincreasesinpayforapprenticesweremorelikelytocomeat
theendoftheircourse.
Awarenessofminimumwagerulesforapprentices
Employersweregenerallyawareoftheminimumwageexemptionsforapprentices,
particularlyemployersinhairdressing.Thiswasunsurprising,asthemajorityweremakinguse
oftheexemptions.Therewaslessclarityabouttherulesaroundincreasingpaytomeetthe
NationalMinimumWageonceanapprenticeturns19andhasbeendoinganapprenticeship
formorethanayear.Someemployerswereunclearaboutwhetherthischangehappenedat
18,19or20.
Effectofminimumwagerulesonemploymentpractices
Anumberofthesalonmanagersweinterviewedhadanactivepolicyofrecruitingyounger
apprenticesbecauseoftheminimumwageexemptions.
‘They’reallyoung,becauseIthink100percentwecanonlypayacertain
amountofmoney…becausethenyougointominimumwageandwecan’t
affordtohaveanormal,so-calledjunior,on£200aweek.Itjustwouldn’tbe
viableforthecompanytodothat.’(Salonmanager,London)
However,aminorityofsalonmanagersprioritisedthequalityoftheindividualapprentice
overtheirage,andwerepreparedtotakeontheextracostsfortherightperson.
‘Ifwefindsomeonewhowethinkisgoingtobeworththemoneythenwe’ll
employthem.ButIthinkforusit’snotreallynecessarilyabouttryingtoget
thecheapeststaff,it’sgettingtherightstaffreally,that’sourkeything.’
(Salonmanager,Surrey)
Viewsoncurrentage-relatedrates
Therewassomeuneasinessamongemployersaboutthecurrentage-relatedNMWrates.A
numberofemployersfeltthatwagesshouldreflectanindividual’strainingstatusratherthan
theirage,echoingtheargumentsmadebyapprenticesinthepreviouschapters.
‘Theyaredoingthejobasaqualifiedmemberofstaff.Itotallydisagreewith
thewaytheminimumratesofpaywork,thatyoucanemploysomebody
undertheageof21forlessthanover21.’(Earlyyearsmanager,North
Yorkshire)
Amongsomeemployers,therewasapreferenceforoneminimumwageratefortraineesand
apprentices,andahigherrateforqualifiedstaff,withnodistinctionmadeonthebasisof
age.
However,almostalltheemployerswhomadeuseofminimumwageexemptionswerein
favourofthecurrentage-relatedrates.Theabilitytopayyoungerstaffatalowerrate,
regardlessofwhetherornottheywereonanapprenticeshipprogramme,wasseenasakey
wayofkeepingcostsdown.Somealsoquestionedtheideathatlowerabilitybutolder
workerswouldbereceivingahigherwagethanyoungerbutmorecapablestaff.
‘Iwouldsay,maybeyouhaveaproblemwiththe22yearold.Idon’tmean
thatinabadway,Ijustmean,whyhaveyougota22yearoldwhoisnotas
goodattheirjobasa17yearold?Youhaveprobablygotaproblemthereand
youhavetolookatwhat’sgoingon.’(Salonmanager,Portsmouth)
EffectoftheincreaseintheLSC/NASrateinEngland
WecarriedoutourinterviewswithemployersinAugustandSeptember2009,which
coincidedwiththeincreaseintheLSC/NASminimumratefrom£80to£95aweekon1
August2009.Wewereabletoaskemployerswhateffectthishadhadontheirapproachto
apprenticeships.
Allemployerswereawareofthechangeandhadincreasedtheirwagesaccordingly,where
relevant.Theaffectedemployersdidnotraisemajorconcernsabouttheincrease:mosthad
beenawareofthechangeforsometimeandhadbeenabletoplanforit.
However,aminorityofemployersreportedthattheincreasehadledthemtorecruitfewer
apprentices.Theytendedtoblametheincreaseintheminimumrateratherthanexplicitly
mentioningtherecession,althoughthisislikelytohavehadsomeimpactontheirbusiness.
‘Wehavetakenon11thisyearratherthantakingon14likewedidlastyear.
[Interviewer:Andthatisdirectlyrelatedtothefactthatyouhadtopaythem
more?]Yeah,exactly.Youhavegottofindthemoneyfromsomewhere,so
ratherthanhavingmorewearetakingless.’(Salonmanager,Hampshire)
Anationalminimumwageforapprentices:employers’perspectivesonthe
potentialimpacts
Employers’opinionsonanational,legalminimumwageforapprenticesweremixed.Among
employersbasedinEngland,anationalminimumwageforapprenticeswasuniformly
interpretedasbeingahigherwagethanthecurrentLSC/NAScontractualminimum,even
whenitwasexplainedthatthismightnotnecessarilybethecase.Thisinterpretationclearly
influencedemployers’opinions.
Negativeopinionsonanationalminimumwageforapprentices
Alltheemployerswhomadeuseoftheminimumwageexemptionsforapprenticeswere
againsttheintroductionofanationalminimumwageforapprentices.
Asmallnumberofemployersobjectedinprincipletopayingapprenticesalegalminimum
wageatanylevel.
‘Idon’tbelievetheminimumwageappliestosomebodywho’sinofficial
apprenticeshiptraining.TheyshouldbegovernedbytheLearningandSkills
Councilandtheratetheyset.They’renotactuallyintheworldofwork,
they’reintheworldoftraining.’(Salonmanager,Lancashire)
However,themainconcernsofemployerswererootedinpracticalchallengesthattheyfelt
wouldarisefromtheintroductionofanationalminimumwageforapprentices.Theirprimary
concernwastheirabilitytoofferthesamenumberofapprenticeshipplaces.Allbutoneof
thesalonmanagersweinterviewedfelttheywouldhavetoreducethenumberofplacesthey
offer:
‘Thatwouldhaveareallybadaffectonus,reallybad.Itwouldaffect
everything.Wewouldn’tbeabletotakeonasmanyapprentices.’(Salon
manager,Hampshire)
Somesalonmanagerssaidtheywouldstopofferingapprenticeshipplacescompletely,and
forsomethiscouldhaveasignificantimpactontheirbusiness:
‘Wewouldn’thaveany[apprentices]…Thedynamicsofthesalonwould
havetochangebecauseyou’dhavetoemploystylists,fullyqualifiedstylists,
whichwouldhavetodotheirownshampooingandeverythinglikethat
becauseyoucouldn’taffordtopayaminimumwageforanapprentice.’(Salon
manager,SouthYorkshire)
Inearlyyearssettingstherewasaparticularissuearoundthestaff–childratiosrequiredby
government.
‘They[apprentices]arenotqualifiedsotheyhavetobetreateddifferentlyin
termsofyourratiosandwhatyouaredoingwiththem.Itwouldprobablybe
betterformetohavequalifiedthannotqualified…Iwouldcarryondoing
modernapprenticeshipsbutitwouldimpactonthenumberIwouldtakeon.’
(Earlyyearsmanager,Glasgow)
However,notallemployerswhoobjectedtoanationalminimumwagefeltitwouldactually
impactontheiruseofapprentices,andthoughttheywouldbeabletoabsorbanyincreased
costs.
‘Whatevertheminimumwagecomesup[to],whateveritis,wewould
obviouslybewillingtopayitandfindwaysofmakingthemoneyback,
passingthecostsontoourcustomers.’(Salonmanager,Surrey)
Onemessagewhichcameacrossverystronglyfromalltheemployersweinterviewedwas
theirbeliefthatcollege-basedtrainingcourses6 inhairdressingandearlyyearsofferan
inferiorstandardoftrainingcomparedtowork-basedapprenticeships.Employersraised
concernsaboutthequalityoftraining,theappropriatenessoftrainingforemployers’needs
andthelackofworkexperiencegainedonsuchcourses.
‘I’veemployedadozenhairdressersovertheyearswhohavecomeout…
with100percentin-collegetraining,andattheendoftheirtwoyearsthey’re
notevenabletodoashampooproperly…Thestandardofthequalityof
workthatapersonof18canproducefollowinganapprenticeshipassociated
withasalonis100percentbetterthantheresultofcomingoutofcollege.’
(Salonmanager,Hertfordshire)
Employersfeltthatwork-basedapprenticeshipsenabledthemtotrainapprenticestotheir
standardandinawaythatreflectedtheirparticularapproachtothebusiness.
‘Ithinkifthey’vegonetocollegeandthey’vegotthepieceofpaperbutno
experiencethenitisdifficulttogettheminvolvedinthenursery…Whereas
iftheystarttheirlearning,theirapprenticeship,intheworkplace,thenthey
knowthestandard.’(Earlyyearsmanager,NorthWales)
Anumberofemployerssaidtheywouldnever,orveryrarely,employsomeonewhohadbeen
throughaprogramme-ledapprenticeshiporothercollege-basedcourse.
‘Idon’tbelievewe’veemployedsomebodywhowenttocollegetolearn
hairdressingforprobablyover15years.Forthesimplereason,theycomeout
ofcollege…andthey’reunabletoperformgenerallywithinthecommercial
environment.’(Salonmanager,Lancashire)
Thisclearlyhasimplicationsforyoungpeopleifthereweretobeafallinthenumberof
work-basedapprenticeshipsavailable,particularlyinthecontextofgovernmenttargetsfor
increasesinapprenticeshipstarts.Iffewerwork-basedapprenticeshipsareavailable,then
moreyoungpeoplemayfindthemselvesinprogramme-ledapprenticeships.Theemployers
6.Employerstalkedbroadlyaboutcollege-basedcoursesanddidnotnamespecificcourses.Courses
whichwouldfallunderthebroadheadingofcollege-basedcoursesincludeprogramme-led
apprenticeshipsinEnglandandNorthernIreland–whichdonothaveawageattachedtothem–and
someapprenticeshipsundertheSkillseekersbrandinScotlandandtheFoundationModern
ApprenticeshipsbrandinWales.Itcouldalsoincludenon-apprenticeshipcourseslikeNVQsandBTECs.
Thesecoursescouldincludesignificantperiodsofwork-placementbutthekeydifferenceisthatthe
learnerisnotemployedandisnotwaged.
wespoketosuggestedthiscouldhaveanimpactontheirlong-termcareerprospectsin
somekeylow-payingsectors.
Someemployersraisedthisissuedirectly.
‘Ithinkyouwillhaveanawfullotmorekidsgoingthroughcollege,whichis
greatforthecollege…andcollegetraininglookssuccessful.Butthe
downsideisthesalonswillnottakethosetraineeswhenthey’vefinished
becausethey’reusuallynotgoodenough.’(Salonmanager,Hertfordshire)
Thereweremixedviewsonwhetheranationalminimumwageforapprenticeswouldaffect
thekindoftrainingthatemployersprovideforapprentices.Almostallemployerswerekeen
tostressthattheyhaddevelopedasuccessfulmodeloftrainingwhichtheywouldnotwant
toalter.
Thismeantthattheprimaryimpactwouldbeonthenumberofplacestheyofferedrather
thanonthekindoftrainingtheyprovided.Forexample,veryfewoftheemployerswe
interviewedfelttheywouldchangetheamountofoff-the-joboron-the-jobtrainingthey
provided,eveniftheminimumwagewaspaidonanhourlybasis.Onlyoneemployer,asalon
managerinLondonwhocurrentlyprovidedadayaweekofoff-the-jobtraining,saidthey
wouldreducethetimespentdoingthiskindoftraining.
Someemployershadarelativelylargenumberofapprenticesandhademployedmembersof
staffspecificallytodealwithtraining.Therewasaconcernamongtheseemployersthat,if
theycutbackonapprentices,theywouldalsohavetocutbackontrainersandassessors,
andthatthismighthaveawidereffectonthebusiness.
‘Itwouldmeanthatwetakeonlesspeople[apprentices].Becausewehave
gotlesspeople,probablyhavelesstrainers,andthenitwouldaffectthe
expansionofthebusinessaswell.’(Salonmanager,Hampshire)
Positiveopinionsonanationalminimumwageforapprentices
Theminorityofemployerswhodidnotmakeuseoftheexemptionstendedtosupporta
nationalminimumwage.Thiswasclearlyinpartbecausetheyfeltthechangewouldhave
littleimpactontheirbusinessastheywerealreadypayingtheirapprenticesatorabovethe
age-relatedNMWrates.However,asmallnumberofemployerswhowouldbeaffectedbya
minimumwageforapprenticesalsosuggestedtherecouldbesomebenefitsfromsucha
move.
Therewasafeelingamongaminorityofemployersthataminimumwagewouldhelpto
increasethenumberofyoungpeopleapplyingforapprenticeships.Althoughalmostall
employersandtrainingprovidersreportedthattheirapprenticeshipplaceswereconsiderably
over-subscribed,someemployersfeltthattake-upofapprenticeshipsatthenationallevelor
insomesectorsmightbeproblematic,andthataminimumwagecouldhelp.
‘Ithinkyou’vegottolookatitasabiggerpicture…thecountryneeds
apprentices,theyneedpeoplequalifying.’(Salonmanager,London)
Someemployersfeltthataminimumapprenticeshipwagecouldimprovetheimageoftheir
industry,againboostingapplicationsfromyoungpeople.Thiswasclearlyaconcerninthe
twolow-payingsectorscoveredbytheseinterviews,withemployersfeelingthatlowstarting
salariesgaveyoungpeopleandteacherstheimpressionthatapprenticeshipswereforpeople
oflowerability.
‘Ithinkifyouhadastructuredminimumwage,itwouldencouragepeopleto
thinkofitseriouslyasacareeroptionratherthanasalastchoice.’(Salon
manager,Surrey)
Aminorityofsalonmanagerswhowereopposedtoanationalminimumwagefor
apprenticesneverthelesssuggestedtherecouldbelong-termbenefitsforthehairdressing
industry.Thisstemmedfromabeliefthatthequalityofsomehairdresserswaspoorandthat
themarketforhairdressingwassaturated.
‘Itmighthelptheindustryoverall,becausetherearefartoomanysalonsper
headofcapitaineverytown…itcouldbeaknock-onbenefitinthelong-
term.’(Salonmanager,Hertfordshire)
Onesalonmanagerfeltthataminimumwagemaymakeemployersmorerigorousintheir
recruitmentprocesses,andinturnimprovethequalityofhairdressingapprenticesand
hairdressers.
‘Itwouldprobablygetridofalotoftherubbishaswell,alotofthe
hairdressersthatarenogood.’(Salonmanager,London)
Anationalminimumwageforapprentices:employers’viewsonhowitmight
work
Itwasdifficulttogetaclearsenseofemployers’viewsonhowanationalminimumwagefor
apprenticesshouldwork.Mostemployerswhowereagainstthechangesimplyfeltthatany
changetothecurrentarrangementsforapprenticepaywouldbedamagingfortheir
businessesandtheindustry,andthereforefounditdifficulttoarticulatetheirspecific
preferencesforanationalminimumwage.
Thiswasespeciallytruewhenintervieweeswereaskedwhatrateanationalminimumwage
shouldbesetat.Alltheemployerswhousedminimumwageexemptionsfeltunabletoname
aparticularlevelorframeworkforsettingarate,preferringinsteadtosimplyretainthe
currentarrangements.
‘Withthe£95,Imean,wehaveobviouslyhadtoadapttothat,soideallyfor
us,wewouldliketokeepit[aminimumwageforapprentices]aroundthe£95
figure.’(Salonmanager,Hampshire)
MostemployersoperatinginEnglandwhowereagainstanationalminimumwage
neverthelesssupportedthecurrentLSC/NAScontractualminimumbecauseithelpedtoroot
outunscrupulousemployers.Theythereforerecognisedtheneedforsomeminimumlevelof
pay–butpreferredthestatusquotoalegalnationalminimumwage.
‘Idon’treallyagreewiththat[havingnominimumpayforapprentices]
becauseIamfairandIdocompare[well]tomostsalons,butIknowalotof
salonsbasicallytakethemickeyonthatone,don’tthey?’(Salonmanager,
SouthYorkshire)
Aminorityofemployersintheearlyyearssectorwhoalreadypaidtheirapprenticesator
abovetheage-relatedNMWratesfeltthatallapprenticesshouldbeonthecurrentage-
relatedNMWrates.
Themajorityofemployerswhomadeuseofminimumwageexemptionspreferredaweekly
minimumwagebecauseitavoidedtheneedtobespecificaboutwhetherapprenticeswere
beingpaidfortimespenttraining.Themajorityalsosawlittlebenefitinnothavingtopay
apprenticesfortimespentdoingoff-the-jobtraining.
‘Iwouldfeelveryuncomfortablewithnotpayingpeopleforwhentheyarein
thetrainingcentre,itwouldreallyworryme.Itdoesn’tseemfairbecause
they’recomingtothesameplace…butthennotpayingfortheirtime…It
looksliketheywouldthenlosewhattheywouldgainfromtheminimumwage
[iftheywerenotpaidforoff-the-jobtraining].’(Salonmanager,Portsmouth)
Anumberofemployerswhomadeuseoftheminimumwageexemptionswerealsoopposed
totheideaofhavingdifferentialpayratesforapprenticesatdifferentlevels.Anumberof
employersopposeditonthebasisthatapprenticescostthemthesame,regardlessofwhat
leveltheyweretrainingat.
‘ItstillcoststhesameforustoteachsomeoneonLevel3asitdoesonLevel
2,sono,Iwouldn’twanttobepayingthemmore.Andplus,theLevel3issix
monthslonger,sotheyaregettingsixmonthsmoreofourtraining,sothey
aregettingmoreoutofitthanaLevel2,weareputtingmorein.’(Salon
manager,Portsmouth)
Someemployerswerealsounhappywiththecurrentarrangementswherebyolder
apprenticesmoveontoNMWratesafterthefirstyear,andfounditdifficulttojustifypaying
olderapprenticesahigherwage.
‘Idon’tthinktheyshouldbeonminimumwageifthey’reolder…They’llbe
onsomethinglike£4.77…youreallycannotaffordittohavesomeone
sweepingthefloor,makingacupofteaandstandingwatchingyou.’(Salon
manager,SouthYorkshire)
Finally,therewassomesupportforunpaidprobationperiodsforapprentices,assuggested
bysomefocusgroupparticipants.
‘We[haveprobationperiods],wehavethemforthreemonthswherewepay
themtheLSCratebutwedon’tactuallyhavethemonthebooksassuch.
Theyaren’tofficiallywithus.Soyes,anythinglikethatwouldhelpusreally.’
(Salonmanager,Portsmouth)
Increasingthenumberofapprenticeshipsandimprovingcompletionrates
Aswellasaskingemployersdirectlyaboutpayarrangementsforapprentices,wespoketo
themaboutthebarriersbothtotakingonmoreapprenticesandtoraisingthecompletion
ratesofapprenticeships,inordertounderstandtheroleofpayinthesetwoprocesses.
Alltheemployerswespoketowereverypositiveaboutwork-basedapprenticeshipsand
valuedthecontributionthatapprenticesmadetotheirbusiness.However,theydididentifya
numberofbarrierstotakingonmoreapprentices,ofwhichpaywasarelativelyminorfactor
undercurrentarrangements.
Oneemployerfeltthataccesstogoodqualitytrainingprovidersinthelocalareawasa
problem.However,thebrakeonfurtherprovisionofapprenticeshipplacesforthemajorityof
intervieweeswassimplythatthecurrentsizeofthebusinessdidnotmakeitfeasible,with
someindicatingthattherecessionmadeitparticularlyunlikelythattheywouldincreasetheir
numberofplacesinthenearfuture.
Employersintheearlyyearssectoridentifiedtwofurtherissues,whichrelatedtotheroleof
privatefirmsinprovidingregulatedquasi-publicservices:
•Inadequategovernmentfundingfortraining:
‘Oneofthebiggestareasthatyouwillcomeacrossistoimprovethelocal
authoritytrainingbudgets.’(Earlyyearsmanager,NorthYorkshire)
•Staff–childratios:
‘Wearesoregulatedintermsofhowmanypeoplewehavegottohave
becausewehavetomakesureoftheratioofstafftochildren…Wedohave
afloatingmemberofstaffwhichtendstobesomebodywhoishaving
apprenticetraining,butwecouldn’treallyjustifyhavingmorethanone.’
(Earlyyears,Edinburgh)
Paywasconsideredtobemoreimportantwhenitcametotherelativelylowcompletionrates
forapprenticeships,echoingsomeoftheviewsfromourfocusgroups.Anumberof
employersfeltthatlowapprenticeshippayrateswereproblematicforyoungpeopleandhad
causedsomepeopletoleaveearly.
‘Inordertokeeppeopleinthetraining,tokeeptheminterested,you’vegot
torewardthem…Idon’tthinkthefall-outofapprenticeshipsisbecauseofa
lackofenjoyment,orlackofinterest,orlackofstimulation…thefall-outin
hairdressing,Ithink,ispurelydowntomoney.’(Salonmanager,Hertfordshire)
Someemployerswhohadhighcompletionratesputthisdowntothefactthattheypaid
apprenticesatorabovetheNMW.
However,anumberofemployersinhairdressingalsobelievedthatpaywasnotakeyissuein
lowcompletionrates,becausehairdressersgenerallyacceptlowerwagesinreturnforjob
satisfaction.
‘Attheendoftheday,youdon’tgointoitforthemoney.Yougointoit
becausethat’swhatyouwanttodoandobviouslyifyoudoittothevery
best,youcanmakealotofmoney.ButIthinkyougointoitbecausethat’s
whatyouwanttodo.’(Salonmanager,Cardiff)
Otherissuesraisedbyemployersinrelationtoimprovingcompletionratesincluded:
•Ensuringtrainingisofahighquality
‘Wefoundbyhavingmodelnights7 onceaweekaswell,thatgivesusanedge
againstotheremployersbecauseitshowswe’reinterestedinprogressingthem
andthattheydoprogressmorequickly…Itmakesthemfeelvalued.’(Salon
manager,Surrey)
•Courselength
‘Ithinktheproblemisit’ssolong,it’ssolongtogetqualified.Whileyouwant
peopletobeproperorwhatever,Ithinkthetrainingcanbemoreintenseand
overashortertime.It’sdraggedoutovertoolong.’(Salonmanager,London)
•Ageandmotivationofapprentices
‘ThisispartofthereasonwhyItendnottakepeoplestraightfromschool…I
havemoresuccesswithpeoplewho’vetriedsomethingelseandsuddenly
thought,Ireallywouldlovetoworkwithchildrenandit’sthatverypositive
decisionandnot,whatdoyouthinkyoumightwanttodo,howabout
workingwithchildren,ohyes,thatsoundslikeanicethingtodo.’(Earlyyears
manager,Edinburgh)
However,thesepointswerenotraisedbythemajorityofemployers.
•Employerswhodidnotmakeuseofminimumwageexemptionsforapprenticeswere
generallysupportiveofaminimumwageforapprentices.
•However,themajorityofemployerswespoketomadeuseoftheminimumwage
exemptionsandwereconcernedabouttheintroductionofaminimumwagefor
apprentices.
•Amongemployersinhairdressing,therewasastrongfeelingthattheywouldhaveto
reducethenumberofapprenticeshipplacestheyoffered.Employersgenerallyfeltthat
thestyleorqualityoftrainingofferedtoapprenticeswouldnotbealtered.
7.Modelnightsgiveapprenticestheopportunitytopractiseonmodelswhilethesalonisclosed.
•Therewasalsoaverystrongconcernthatanyfallinthenumberofwork-based
apprenticeshipplaceswouldleadtoanincreaseinthetake-upofcollege-based
trainingcourses.Employers,particularlyinhairdressing,hadseriousreservationsabout
thisbecausetheybelievedthatcollege-basedcoursesdonotoffertrainingrelevantto
theindustry.Theknock-oneffectforyoungpeopleintermsoftheiremployabilitywas
aconcernamongmanyemployers.
•Amongemployerswhomadeuseoftheminimumwageexemptions,therewasa
preferenceforaweeklyminimumwage(providingaflatrateregardlessoftimespent
training);andasinglerateregardlessofleveloryear.Moststatedthattheywouldlike
toseethesefeaturesinanynationalminimumwageforapprentices.Employerswere
lesswillingtogiveaparticularpreferredlevelforanyminimumrate.
•Currentpaylevelswerenotseenasabarriertotheprovisionofapprenticeshipplaces,
buttherewasdisagreementaboutwhetherlowlevelsofpaycontributedtorelatively
lowcompletionratesforapprenticeships.
6.Trainingproviders’perspectivesonapprenticepay
Inthischapterwediscussthefindingsfromourinterviewswithtrainingproviders.Wecarried
outinterviewswithfivetrainingproviderswhoofferedapprenticeshipsinatleastoneofthe
fivelow-payingsectorsconsideredinthisstudy.Theaimoftheinterviewswastogaina
furtherinsightintotheroleofpayinyoungpeople’sdecision-makingaround
apprenticeshipsaswellasanunderstandingofhowanationalminimumwagefor
apprenticesmightaffecttrainingproviders.Weinterviewedtrainingprovidersinthefollowing
locations:NorthernIreland,Hampshire,Kent,GreaterManchesterandMerseyside.
Currentapprenticepayarrangements
Westartbybrieflysettingoutthepayarrangementsforapprenticesunderthesupervisionof
thetrainingprovidersweinterviewed,andtheirroleinnegotiatingapprenticepay.
Apprenticepay
AmongthefourtrainingprovidersoperatinginEngland,mostoftheirapprenticesstartedon
theLSC/NASrate,orjustabove,althoughinsomecasestheycouldincreasetheirpay
relativelyquickly.ThetrainingproviderbasedinNorthernIrelandhadacontracttodeliver
apprenticeshipsforpeoplealreadyinwork,sotheirapprenticeswereallontheNMWor
above.
Youngpeople’sunderstandingofminimumwagerules
Allthetrainingprovidershadaclearprocessforinformingapprenticesabouttheirwage
entitlements,alongsidetheirotheremploymentrights.Inallcases,thisformedapartofthe
interviewprocessandthetrainingthatapprenticesreceived.
‘That’spartofourinterviewprocess.Wehavesetquestions.Wehaveaset
interviewpackandonthatittalksaboutthewage,ittalksaboutthehours.’
(Trainingprovider,Merseyside)
Mostofthetrainingprovidersfeltthatthiswasimportantbecauseyoungerapprenticeshad
verylittleunderstandingoftheminimumwagewhentheystarted.
‘Ithinktheyhavenoawareness,really,ofwhatthenationalminimumwageis
and[how]thatdiffersfordifferentagegroupsetcetera.They’retotally
oblivioustoitreally.’(Trainingprovider,Kent)
Roleinnegotiatingandmonitoringapprenticepay
Mosttrainingprovidershadnoroleinnegotiatingthepayofapprenticesorensuringthat
employersinEnglandpaidtheLSCcontractualminimum.However,onetrainingproviderhad
averyproactiveapproachtoapprenticepay.
‘Weactuallyrecommendahigherwagetoouremployersandwestrongly
recommendthattheypayawageinlinewiththeminimumthresholdfor
nationalinsurancecontributions…Atthemoment,£95istheminimumNI
thresholdwhichworksoutok,butassoonastheNIthresholdgoesupwewill
bewritingtoallofouremployerstosaytherecommendedminimumwagefor
apprenticesisnowthis.’(Trainingprovider,GreaterManchester)
Thisprovideralsoregularlysurveyeditsapprenticestoensurethattheyhadasuitable
employmentcontractandwerereceivingthecorrectwage.
InstancesofemployerspayingbelowtheLSC/NAScontractualminimum
TwoofthefourEngland-basedtrainingprovidershadnevercomeacrossemployerspaying
belowtheLSCcontractualminimum.Theothertwoprovidershadhadoneortwocasesin
thepast,whichwereusuallyresolvedquicklybyexplainingtoemployerstheneedtopaythe
minimumrate.
EffectofincreaseintheLSC/NASrate
OnlyoneofthetrainingprovidersbasedinEnglandreportedanydifficultiesresultingfrom
theincreaseintheLSC/NASrate.However,thishadledtoasmallnumberoftheemployers
theyworkedwithendingapprenticeshipsearly.
‘Wehavehadsalonswhohaveletsomeofourlearnersgo,becausetheycan’t
affordtheextra£15aweek.Thesalonshaverungupandsaid,Iamnot
keepingthembecauseIcan’tafford£15aweekextra…Forusitwasonly
two,twolearnerslosttheirplace.’(Trainingprovider,Merseyside)
Influencesonyoungpeople’sdecision-making
Thereweremixedviewsamongtrainingprovidersontheroleofpayininfluencingyoung
people’sdecisiontostartanapprenticeship.Mostprovidersfeltthatthefactthat
apprenticeshipsarepaidisoneofthekeymotivationsforyoungpeople,alongsidetheir
desiretogainaqualification.However,paywasrarelyfoundtobetheonlyorcentral
motivation,reflectingwhatapprenticestoldus.
‘Certainlyoneofthebenefitsofbeinganapprenticeisyoucanearnwhile
you’relearning…Havingthatbalanceofbothqualificationandon-the-job
experienceinadditiontopayarethebiggestreasonswhypeoplearecoming
intotheapprenticeshipsideofthings.’(Trainingprovider,GreaterManchester)
Someprovidersfeltthatpayhadverylittleinfluenceonyoungpeople’sdecisiontodoan
apprenticeship,withtheabilitytogainaqualificationbeingmuchmoreimportant.
‘I’dsayaqualificationismoreimportant.Idon’tthinkat16youreallyhave
thatmoneyconcept,it’snotuntilyougetolder…Thefactthattheywantto
beaqualifiedhairdresserismoreimportanttothem,notthewage.’(Training
provider,Hampshire)
Trainingprovidersalsofeltthatmanyyoungpeoplewerepreparedtotoleratelowwagesin
theshorttermbecauseofthelongertermbenefitsandtheirpassionforthejob.
‘Oneofthe[interview]questionsis,hairdressingtraininghasanotorious
reputationforbeingpoorlypaid,longworkinghoursandweekendwork–
howdoyoufeelyouarepreparedforthis?Thebiggestanswerwegetis,it
willbeworthit.’(Trainingprovider,Merseyside)
However,someprovidersalsoreporteddifficultiesinexplainingthelong-termbenefitsof
apprenticeshipswhenyoungpeopleknewtheycouldearnahigherwageintheshorttermin
ajobwithouttraining.
‘Theirpeersmayhaveleftschoolandgonestraightintoajobandthey’re
goingtobeearningmaybe£150,£200aweekjustdoingajobwherethey
maynotreceiveanytraining.Andobviouslytheyare[apprentices]only
earning£95aweek,sosometimeswedohavetoovercomethatobjection
withpeople.’(Trainingprovider,GreaterManchester)
Thepotentialimpactofanationalminimumwageforapprentices
Ingeneral,thetrainingproviderswespoketowereconcernedabouttheintroductionofa
nationalminimumwageforapprenticesandtheimpactitwouldhaveontheemployersthey
workedwith.Theirconcernsweresimilartothoseexpressedbyemployers,andcentredon
thenumberofplacesthatemployerswouldofferandtheknock-oneffectsforcollege-based
trainingcourses.
Trainingprovidersgenerallyfeltthattheemployerstheyworkedwithwouldreducethe
numberofapprenticeshipplacestheyoffer,andthatitwouldbemoredifficultforproviders
topersuadeemployerstotakeonapprentices.
‘Ithinkifyoutriedtoupthewage,itwoulddefinitelyincuraproblem,
becausetheonlyadvantageIfeelI’vegotatthemomentisthewayIcansell
theapprenticeshiptothem[employers]is,wrongly,butit’sthefactthatthey
don’thavetopaythemthenationalminimumwage.’(Trainingprovider,Kent)
Inhairdressing,therewasaparticularconcernaboutthelongertermimpactthiscouldhave
ontheindustry.
‘Youknow,yearsagopeopledidn’tsendtheirkidstocollege[tolearnabout
hairdressing]becausewhatwasthepoint?…Wehavecomealongwayfrom
thatandit’sjustaconcernofminethatwewouldgobacktothatway–
peopleworkinginsalonsandhavingnoqualifications.’(Trainingprovider,
GreaterManchester)
Trainingprovidersechoedemployersintheirconcernsaboutcollege-basedcourses,
particularlyinhairdressing.
‘Wehavemanyoccurrenceswhereoneofouremployershastakenonajunior,
anapprentice,fromanotherprovider,maybeafull-timeprovider.They’ve
actuallyhadtosendthemtoustore-dotheirqualificationwithus,because
theirtheorymaybevery,verygoodbuttheirconfidenceisn’tsogood,their
confidenceandtheiractualpracticalabilityisn’tverygood.’(Trainingprovider,
GreaterManchester)
Onetrainingproviderwasparticularlyconcernedaboutthelongertermeffectsofrising
numbersofyoungpeopledoingcollege-basedcoursesinhairdressingifemployersreduced
theirintakeofapprentices.
‘ThoselearnerswhohavedoneaLevel2willthenleavecollege.Theycan’t
getajobbecausenosalonwilltakethemonbecauseyouhavegottostart
retrainingthem.Andrememberthatiftheyarenottraining[onanofficial
apprenticeship],youhavegottopaythemtheminimumwage.Theythenend
uponthedolequeuebuttheyautomaticallygointoNEET8.Sowhilethe
Governmentareverygoodatpushingthecollegeapprenticeshipsystem,all
theyareinfactdoingisfuellingtheNEETfigures.’(Trainingprovider,
Merseyside)
Anumberoftrainingprovidersalsofeltthatemployerswouldreducetheworkinghoursof
apprenticesifanhourlyminimumwageweretobeintroduced.Theyfeltthatanational
minimumwageforapprenticeswouldalmostcertainlybehigherthantheratescurrentlypaid
tomanyapprentices,andsoemployerswouldlooktocutcostsbyreducingapprentices’
workinghours.
‘Ithinkyouwouldgetemployersthentakinglearnersonforeighthoursa
week,16hoursaweek.Theywouldn’tbefullyemployed.’(Trainingprovider,
Merseyside)
Trainingprovidersfeltthatreducedworkinghourswouldthenhaveaknock-oneffectonthe
amountofon-the-jobtrainingundertakenbyapprentices,reducingtheoverallqualityof
training.
8.Meaningtheywouldbeclassifiedasnotinemployment,educationortraining(NEET).The
Governmenthasatargettoreducethenumberofyoungpeopleaged16to18whoareNEETinEngland.
‘Ithinkifanhourlyratewasputin,they[employers]wouldwatchthecosta
littlebitmore.Icertainlyfeelthattheywouldpotentiallyreducethehours…
Ithinkifyoutookthem[apprentices]outoftheemployer’spremisesfora
certainperiodoftime,thenobviouslythey’regoingtobemissingoutonthat
knowledge.’(Trainingprovider,GreaterManchester)
Onetrainingproviderfeltthatanationalminimumwagecouldhavesomepositiveimpact.
Hewaskeentoincreasediversityamonghisapprenticesandstruggledtorecruityoung
peoplefromsomeethnicminoritycommunities.Hebelievedthiswaslinkedtothelowpay
onoffertoapprenticesatthebeginningandfeltthatahigherwagecouldhelphis
apprenticeshipscompetewithmoretraditionalacademicoptions.
‘Iftheysawtheapprenticeshiproutehadbetterremuneration,thenIthinkwe
mayhaveastrongerargumentthentoturnaroundandsay,ifyougodown
yourtraditional[academic]route,thisiswhatyou’regoingtoget,butifyou
godownanapprenticeshiproute,you’regoingtobenefitbygettingallthe
benefitsofbeingonanapprenticeshipprogramme.’(Trainingprovider,Greater
Manchester)
Therewasdisagreementbetweentrainingprovidersontheextenttowhichlowpayinsome
apprenticeshipshasaneffectoncompletionrates.Someprovidersfeltthatpaywasalmost
neveranissue.
‘Ihavetosay,Idotheevaluationsfortheleavers…Ihaveneverhadthatput
on[pay],thatisn’tinanyofourdata.’(Trainingprovider,Merseyside)
Intheirexperience,themainreasonforpeoplefailingtocompletetheirapprenticeshipwasa
lackofcommitmenttotheworkortheindustry.
However,someproviderswereconcernedthatlowpaydoesleadsomeapprenticestoleave
early.
‘Wehavehad,overthepastcoupleofyears,anumberoflearners…whohad
toleavethequalificationandgoanddosomethingelsebecausethey
physicallycannotaffordtoliveonthatwage.’(Trainingprovider,Greater
Manchester)
•Trainingprovidersthoughtthatpaywasrarelythemainmotivationforstartingan
apprenticeship:youngpeopleweremorelikelytochooseanapprenticeshipbecause
theywantaqualificationorhigherwagesinthelongerterm.Thissupportsthefindings
fromourfocusgroupswithyoungpeople.
•Mosttrainingproviderssharedtheconcernsofemployersabouttheeffectofa
minimumwageforapprenticesontheprovisionofwork-basedapprenticeships.Aswith
employers,thiswasaparticularconcerninthehairdressingindustry.
•Trainingprovidersalsosharedtheconcernsofemployersaboutapotentialincreasein
programme-ledapprenticeshipsresultingfromthemovetoaminimumwagefor
apprenticeships.
•Sometrainingprovidersfeltthatanhourlyminimumwagemightencourageemployers
tocutthehoursofapprenticesinordertosavemoney,thusdecreasingthetime
apprenticesspendlearningon-the-job.However,thisisnotsupportedbythe
interviewswithemployers.
•Onetrainingprovidersuggestedthataminimumwageforapprenticeswouldencourage
someethnicminoritycommunitiestoconsiderapprenticeshipsasabetter-payingand
moreprestigiousqualification.Thiswasnotrepeatedbyotherinterviews,althoughwe
onlyspoketoasmallnumberoftrainingproviders.
7.Careersadvisers’perspectivesonapprenticepay
Inthischapterwediscusstheroleofcareersadviceinshapingthedecisionsofyoung
people,andinvestigatecareersadvisers’viewsonhowaminimumwageforapprentices
mightaffecttheirwork.
Theaimofthispartoftheprojectwastounderstandwhetherthelackofaminimumwage
impactsonthecareersadvicegiventoyoungpeople.Fivecareersadviserswereinterviewed,
basedinKent,Belfast(twoadvisers),ManchesterandWales.AdvisersinEnglandwerebased
inlocalConnexionsoffices;advisersinWalesandNorthernIrelandwerebasedinlocal
careersofficesorjobcentres.
Careersadvisers’viewsonapprenticeships
Webeginthissectionbybrieflysettingoutthecareersadvisers’awarenessof,andviewson,
apprenticeships.
Allthecareersadviserswespoketofelttheyhadanadequateunderstandingof
apprenticeshipstobeabletoadviseyoungpeopleappropriately.Mostadvisersfelttheir
knowledgewasrelativelygeneralandtheylackedanunderstandingofthedetailsofhow
apprenticeshipsindifferentindustrieswork.However,thiswasnotperceivedtobe
problematicbecausetheysawtheirroleasreferringyoungpeopletotherelevanttraining
providerswhocouldthenprovidemoredetailedinformationaboutspecificprogrammes.
‘I’vegotaroughideafromspeakingtotrainingprovidersandyoungpeople
doingthem[apprenticeships]…Iwouldn’tsayIhaveanin-depthknowledge
ofhowtheactualcourseswork.’(Careersadviser,Manchester)
Careersadviserscontrastedapprenticeshipspositivelywithemploymentwithouttrainingand
unpaidtraining.
‘Ifanemployerisinvestinghismoneyinayoungpersonthenhewillbemore
keentodevelopthem.They’rewiththatemployerasopposedtoiftheyhave
simplysomeonethereonaworkexperienceplacement.Ithinkifthe
employer’spayingtheirwages,theemployer’slookingaweebitmoreattheir
longertermdevelopment.’(Careersadviser,NorthernIreland)
Therewasalsoabeliefamongtheadviserswespoketothatthequalificationsgained
throughapprenticeshipsincreaseemployabilitycomparedtoworkexperienceprogrammesor
jobswithouttraining.
‘We’reverymuchinanagewhereemployersliketoseecertificatesand
qualificationsofsomesortandIthinkit’sabenefittohavethatsortofstuff
ratherthanjusthavingexperiencewithoutthetrainingsideofit.’(Careers
adviser,Manchester)
InChapter2wesawthatfocusgroupparticipantsfeltthatcareersadvisersoftenemphasised
traditionalacademicroutesoverapprenticeships,particularlytostudentswhowereperceived
tobeofabove-averageability.Thecareersadviserswespoketosupportedthisfinding.
Althoughtheyviewedapprenticeshipspositively,theyalsosaidtheywouldbelikelyto
encourageacademicallytalentedyoungpeopletopursueacademicroutessuchasA-levels.
‘Forsomeoneinterestedinmechanicalorelectricalengineeringandtheywere
likelytobegettingparticularlygoodgradesintheirGCSEsandwerehopingto
doA-levels,youwouldreallybelookingthenattheirgraduateoptions…So
therearesomepeoplethatit[apprenticeships]probablywouldn’tbedirectly
recommended[to].’(Careersadviser,NorthernIreland)
A-levelswerealsoperceivedtobeamoreflexibleoptionthanapprenticeships,whichinvolve
choosingaparticularcareeratarelativelyearlyage.
‘Isometimeshesitateputtingpeopletowards[apprenticeships]becauseif
they’re16,it’sdifficulttosay,right,thisiswhatI’mgoingtodo.Soif
someone’shesitatingandthey’recapableofdoingA-levels,I’mmorelikelyto
suggesttheygodownthatroute…itmeansyoucankeepyouroptions
open.’(Careersadviser,Manchester)
Careersadvisers’perspectivesonyoungpeople’sdecision-making
Careersadviserstalktoalargenumberofyoungpeopleeachyearandhaveusefulinsights
intothemotivationsofyoungpeoplewhentheyaremakingdecisionsaboutwork,education
andtraining.Inthissection,webrieflysummariseadvisers’viewsontheinfluencesofyoung
peopleconsideringapprenticeships.
Thecareersadviserswespoketodidnotthinkthatthelevelofpaywasamajorfactorin
youngpeople’sdecisionsabouttheirfuture.Mostcareersadvisersfeltthatyoungpeople
tendtounderstandthatapprenticeshipsarerelativelylowpaidbecauseitisanelementof
takingpartinatrainingprogramme.
‘Ithinkingeneralterms,they’repreparedtogothroughthesystem.They
knowthisiswhattheyhavetodoiftheywanttogettheirapprenticeship…
everybodyknowsandit’sacceptedaspartoftheapprenticeshipprogramme.’
(Careersadviser,NorthernIreland)
Anothercareersadvisersuggestedthatthemainreferencepointaroundpayforyoung
peopleistheEducationMaintenanceAllowance(EMA),whichissupportedbythefindings
fromourfocusgroupswithyoungpeople.
‘Ithinkwhatreallyattractsthemistheygetpaidmoremoneythansomeone
goingtocollege.It’samixtureofnotwantingtostayineducationandalso
likingtheideaofhavingabitofextracash.’(Careersadviser,Manchester)
Mostoftheyoungpeoplethatcareersadvisersspoketolivedathome,andtheythought
thatthisfurtherinfluencedtheirattitudetopaylevels.Forayoungpersonwithfew
outgoings,evenlimitedapprenticeshippaycanprovideahighlevelofdisposableincome.
‘Ifyousaytoaschoolleaverthey’regoingtoget£80aweek,evennow,
what’sthat,that’sacoupleofpairsoftrainers…especiallybecausethey’re
livingathomegenerally.Theiroverheadsarevirtuallynegligible,sothat’sjust
moneyforthephonebillandclothesreally.’(Careersadviser,Manchester)
Asindicatedbyourresearchwithyoungpeoplethemselves,careersadvisersobservedfamily
andsocialbackgroundtobeabiggerinfluenceoncareerdecisionsthanwages.
‘Theyareallfromaveryworkingclassbackgrounds[theyoungpeoplethe
adviserworkswith]…Theydon’tknowanythingdifferentfromdoingtrades
andtheygettold[bytheirfamily],you’vegottogetatradebecausethere’s
alwaysmoneyinatrade.’(Careersadviser,Manchester)
Theinfluenceofsocialbackgroundoncareerdecisionscouldalsobeobservedacross
schools.
‘Isupposeitdependsreallyontheschools.OneoftheschoolsIwasworking
at,agrammarschool,it’s[apprenticeships]lesslikelytocomeupthere.But
certainlyatoneoftheotherschools,Iworkinabigcomprehensiveandyou
wouldgetthefullrangeofpeople.’(Careersadviser,NorthernIreland)
Advisersalsofoundthattheopinionsofparentsareamajorinfluenceonyoungpeople.
Parentsofchildrenwhoareofabove-averageabilityareunlikelytobepersuadedthattheir
ownchildshouldpursueanapprenticeshipratherthanA-levels.
‘Whenparentswouldcomeinwiththeyoungpeople,youknowthey’revery
keenontheapprenticeship,theyseethatasagoodstandardreally.But
you’renotgoingtoconvinceaparentofanA*student,youknow,notto
continuetodoA-levels.Theymightseethevalueofitallrightbutmaybefor
someoneelse.’(Careersadviser,NorthernIreland)
Theperspectivesofcareersadvisersonthereasonswhyyoungpeoplechoose
apprenticeshipsisverymuchinlinewithwhatweheardfromyoungpeopleinourfocus
groups.Payisclearlyanimportantfactorformanyyoungpeoplebutitcanbelessimportant
thanfamilybackgroundandperceptionsofdifferentoccupationalopportunities,whichare
oftendrivenbyfamilyandsocialbackground.
Careersadvisers’advicetoyoungpeopleonapprenticepay
Careersadvisersweregenerallyawareoftheminimumwageexemptionsforapprenticesand
advisersinEnglandhadsomeknowledgeoftheLSC/NASminimum,althoughtherewas
someambiguityabouttheactualrateanditsapplicability.
‘IwillgenerallytellthemwhatIwouldexpectthemtoget.WhatI’vebeen
toldbytrainingprovidersisthattheywillgetbetween£80and£120.’
(Careersadviser,Manchester)
Advisersgenerallytriedtomakesureyoungpeoplewereinformedaboutapprenticeshippay.
‘Iwouldcertainlyraiseitwiththem[theyoungperson]andsay,“butyou
knowyouaresortofatthemercyofwhattheemployer’spreparedtopay
you”.’(Careersadviser,NorthernIreland)
Advisersdidnotexpressstrongpositiveornegativeopinionsaboutapprenticesbeing
exemptfromtheminimumwageanddidnotthinktheexemptionsmadethemlesslikelyto
recommendapprenticeshipstoyoungpeople.
Whenaskedabouttheimpactofincludingapprenticeshipsintheminimumwageframework,
careersadvisersdidnotthinksuchaninclusionwouldmakethemmorelikelytorecommend
apprenticeshipsbutsaiditwouldhelpthemansweryoungpeople’squestionswithmore
clarity.
‘Ithinkitwouldactuallyclarifyit.Youcouldsay,welllook,thisiswhatthe
ratesare.It’sblackandwhite.’(Careersadviser,NorthernIreland)
•Careersadvisersemphasisedtheimportanceofacademicabilityintheirdecisionto
recommendparticularcareerroutestoyoungpeople.Whetherornotayoungpersonis
suitedtoandcapableofundertakingmoreacademicqualificationsisfarmorelikelyto
influencewhetherornotcareersadvisersrecommendapprenticeshipsthanpaylevels.
•Careersadvisersreportedthatparentshaveastrongerinfluenceonyoungpeople’s
decisionsabouttheirfuturethanpaylevels.
•Somecareersadvisersfeltthatthecurrentarrangementsforapprenticepayarecomplex
andmakeitdifficulttogiveyoungpeopleadviceabouttheirpotentialearnings.
8.Conclusionsandpolicyimplications
Thisreporthaspresentedourfindingsfromresearchwithyoungpeople,employers,training
providersandcareersadvisersintoapprenticepay.Inthisfinalchapter,wesetoutour
conclusionsandhighlightsomeofthekeyimplicationsforpolicy,bothfortheNational
MinimumWageandforapprenticeshippolicymorebroadlywhererelevant.Wehave
structuredourconclusionsaroundthekeyaimsoftheproject:
TogainaninsightintohowapprenticeshippayratesdifferacrosstheUK,includingby
country,apprenticeshiplevel,industrysector,ageandgender.
•Tounderstandtheimportanceofpayinthetake-upandcompletionofapprenticeships
relativetootherfactors(suchaspeereffects,familybackgroundandcareersadvice),
andhowthisvariesbygender,age,sectorandcountry.
•Toinvestigatehowemployersmightrespondifapprenticepaywerebroughtintothe
NMWframework.
Focusgroupparticipantsandintervieweeshadremarkablyconsistentviewsaboutapprentice
payandthepotentialimplicationsofbringingapprenticepayundertheNMWframework.
OursurveyresultsonlycoveredEngland,sowearenotabletodrawanyconclusionsabout
differencesinpayacrosstheUKbasedonthesurvey.
Variationsinapprenticepay
Oneoftheprojectaimswastogainaninsightintovariationsinapprenticepay,bycountry,
gender,sectorandage,whichweexaminedthroughasurveyofyoungpeople.Oursurvey
findingsforEngland,combinedwiththepaydatagatheredfromfocusgroupparticipants,
arebroadlyinlinewiththefindingsofthemostrecentDIUSpaysurvey(FongandPhelps
2008):lowapprenticepayismostcommoninthefemale-dominatedsectorsofhairdressing,
earlyyears,retail,andhealthandsocialcare.
Wefoundasmallnumberofexamplesofverylowwages(belowtheLSC/NAS£95rate)
amongfocusgroupparticipantsoutsideEngland.However,giventhesamplesizeinthe
focusgroups,itisdifficulttodrawanyconclusionsabouttheextenttowhichthis
demonstratesthatapprenticewagesaregenerallyloweroutsideEngland,ortheextentto
whichapprenticepayvariesacrossthecountriesoftheUKmoregenerally.
Inourfocusgroupsandinterviews,wefoundthatemployersinhairdressingweremostlikely
tomakeuseofminimumwageexemptions.Ourfindingssuggestthataminimumwagefor
apprenticeswouldhavethemostimpactonfemaleapprenticesandthoseinthemainlow-
payingsectors,butparticularlyhairdressing.
Theroleofpayinyoungpeople’sdecisiontostartanapprenticeship
InChapter2,weconcludedthatreceivingawagewasamotivatingfactorforyoungpeople
beginninganapprenticeship.Howevergettingpaidisrarelythemainreasonforbeginning
anapprenticeship;forthemajority,theinfluenceoffamilymembers,socialbackgroundand
thedesiretogainaqualificationandatradehadagreaterinfluenceontheirdecision.
Whentheydidconsiderpay,youngpeoplecommonlyusedtheEMAasapointof
comparisonandweresatisfiedthattheyweregettingmoretoworkthantostayinfull-time
education.Mostoftheyoungpeoplewespoketorecognisedthedifficultyinmakinga
directcomparisonbetweenthewageratesofapprenticeshipsandjobswithouttraining,
becauseofthetrade-offbetweencurrentandfutureearnings.
Therewassomeevidencefromourfocusgroupsandinterviewsthataminimumwagewould
encouragemoreyoungpeopletotakeaninterestinapprenticeships,whichcouldleadtoan
increaseindemandforwork-basedapprenticeshipplaces.
Policyimplications:
•Basedonourfindings,theredoesnotappeartobeastrongargumentforintroducinga
minimumwageforapprenticesinordertoincreasethenumberofyoungpeople
wantingtodoapprenticeships.Thisisparticularlyimportantinthecontextofmost
apprenticeshipplacesbeingoversubscribed,suggestingthereislittleproblemwiththe
take-upofapprenticeshipsbyyoungpeopleingeneral.
•However,theremaybeacaseforaminimumwageinordertoattractdifferentkindsof
youngpeopletoapprenticeships,particularlythoseofhigherability.Itwasnotclear
fromourresearchwhetherthiswouldbethecase,andfurtherresearchwithyoung
peoplewhochoosemoreacademicpost-16routesmaybeuseful.Aminimumwage
mayalsohavetheeffectofattractingyoungpeoplewhowouldotherwisehavechosen
ajobwithouttraining.Someoftheseyoungpeoplemaybeoflowerabilitythan
currentapprentices.Theoutcomeofthesepotentialchangeswoulddependlargelyon
howemployersandtrainingprovidersselectapprentices.
•Thelikelyincreaseindemandforemployer-ledapprenticeshipplacesandanychanges
inthecharacteristicsofyoungpeoplewantingtodothesecourseswouldneedtobe
properlymanaged.Thiscouldbeachievedbysupportingemployerstomaintainor
increasethenumberofplacesonoffer;orbyactivelyrestrictingaccessto
apprenticeshipstocertaingroups,forexample,byincreasingtheentryrequirements.
Government,employersandtrainingproviderscouldallhaveimportantrolesinthis.
However,itmaybethatgreatercompetitionforapprenticeshipplaceshassome
beneficialeffectifitproducesabetter‘fit’betweenyoungpeopleandemployers.
Theroleofpayininfluencingyoungpeoples’decisiontocompletean
apprenticeship
Ourresearchhasfoundsomeevidencethattheintroductionofaminimumwagefor
apprenticescouldhelptoincreaseapprenticeshipcompletionrates.Althoughlowpaywas
nottheprimaryreasonwhyyoungpeopleinourfocusgrouphadleftanapprenticeship,pay
wasoneofthefactorsalongsidelowjobsatisfactionandpoorqualitytraining.Thereseemed
tobeanimportantrelationshipbetweenpoorqualitytrainingandlowpaythathadcaused
ourparticipantstoleavetheirapprenticeshipearly.Therewasdisagreementamongtraining
providersandemployersaboutthepreciseroleofpayininfluencingcompletionrates,
suggestingthatfurtherevidenceisneededonthis.
Thefactthatsomeemployersdidnotsufficientlysetoutthedifferentrolesofapprentices
andotherstaffcreatedafeelingamongapprenticesinthelow-payingsectorsthattheir
lowerwageswereunjustified.Thiswasmostcommoninretailandhospitalityandmakesit
difficulttojustifylowerapprenticewages.Itcreatedasenseofdissatisfactionamongsome
apprentices,withsomeeffectontheirwillingnesstocompletetheapprenticeship.
Wealsofoundthatsomeyoungpeoplewerelikelytobemotivatedtocompletetheir
apprenticeshipiftheyreceivedregularpayincreaseslinkedtoperformanceorprogress.The
evidencewegatheredfromapprenticessuggestedthatfinancialrewardswouldhavemost
impactiftheyweresmallandregular,ratherthaninfrequentandlarge,andlinkedto
performance.
Policyimplications:
•Aminimumwageforapprenticescouldhavetheeffectofincreasingcompletionratesif
itisintroducedaspartofapackageofmeasuresthatalsoimprovestheotherfactors
associatedwithjobsatisfaction.
•Suchapackageshouldincludeameansofensuringconsistentlyhigh-qualitytraining
andensuringthatemployersprovideadequatesupporttotheirapprentices.Morework
isalsoneededtoensurethatthereisacleardistinctioninthemindsofemployers
betweenapprenticesandotherstaff,andthenatureofworkthatdifferentkindsof
employeesarerequiredtodo.Thiscouldhelptolegitimiselowerpayratesfor
apprentices.Ourresearchsuggeststhatthiswouldbeparticularlyimportantin
hairdressing,retailandhospitality.
•Otherstepstoimproveapprenticeshippayratescouldalsobeconsideredby
governmentsalongsideaminimumwageforapprenticesasawayofincreasing
completionrates.Thesecouldincluderegularandtransparentpayrises,aswellassmall
bonusesforcompletingaqualification.
•Ifaminimumwageforapprenticesweretobeintroduced,governmentshouldensure
thattheeffectoncompletionrates(andapprenticeshipapplicationsandstarts)was
regularlymonitored.Employersandtrainingprovidershaddifferentviewsontheeffect
itwouldhaveoncompletionrates,soitwouldbeimportanttogatherevidenceonthis.
TheimpactonemployersofbringingapprenticepayintotheNMW
framework
InChapter5,employersinsomelow-payingsectors,primarilyhairdressing,wereclearthat
theywouldreducethenumberofapprenticeshipplacestheyoffer.Thisinturncouldleadto
anincreaseinthenumberofyoungpeopleundertakingprogramme-ledapprenticeshipsand
othercentre-basedvocationalcourses.Therewaswidespreadconcernamongemployers,
trainingprovidersandyoungpeopleaboutthequalityoftrainingprovidedinprogramme-led
apprenticeships.Thiscreatedseriousconcernsabouttheemployabilityofyoungpeople
goingthroughtheseprogrammes,particularlyinhairdressing.
Morebroadly,hairdressingemergedfromourresearchastheonelow-payingsectorwhich
wouldbemostaffectedbyanychangesinapprenticepayarrangements.Thisissupported
byotherresearch,whichsuggeststhathairdressersoftenhavebusinessmodelsbasedon
theirabilitytoemployapprenticesonverylowwages(Denviretal2008).Themajorityof
apprenticesemployedinthissectorarelow-paidandfemale.
However,itisdifficulttoknowwhethertheassertionsofemployerswouldbeborneoutin
realityifanapprenticeminimumwageweretobeintroduced.Employershaveconsistently
arguedthatanationalminimumwagewouldaffectemploymentatthebottomofthelabour
marketbutresearchfortheLowPayCommissionhasfoundverylittleevidenceforthis.In
practice,salonownersmayfindotherwaysofabsorbinganyincreasedcostsassociatedwith
aminimumwageforapprentices,especiallygiventhehighregardtheemployerswe
interviewedhadfortheapprenticeshipprogramme.
Therelationshipwefoundinthefocusgroupsbetweenpayandtrainingqualitymeansthata
minimumwageforapprenticescouldleadtoimprovementsintrainingqualityifitcreatesan
extraincentiveforemployerstoinvestintheirapprenticesinordertomaximisetheirreturn
topayingahigherwage.Aminorityofemployerswhoofferverypoorquality
apprenticeshipsanddonothaveagenuineinterestinofferinggoodqualitytrainingto
youngpeoplemaywithdrawtheirapprenticeshipprogrammes,whichcouldalsoleadto
improvementsintheoverallqualityofemployer-ledapprenticeships.
Althoughtheearlyyearssectorisalsoregardedasalow-payingsectorwithalargenumber
oflow-paid,femaleapprentices,wefoundlessevidenceinourresearchtosuggestthatthis
sectorwouldbeasseverelyaffectedashairdressing.Thisisprimarilybecause,inour
research,earlyyearsemployersweremakinglessuseoftheminimumwageexemptions.
Policyimplications:
•Ifaminimumwageforapprenticesweretobeintroduced,additionalsupportmayneed
tobeavailabletoemployersinlow-payingsectorsinordertoensurethattheprovision
ofwork-basedapprenticeshipsismaintained,orevenincreased.Ourresearchsuggests
thiswouldbedesirable.Supportcouldincludewagesubsidiesforcertainemployersor
anexpansionofgroupapprenticeshipschemes9.
•However,governmentswouldhavetotakeapoliticaldecisionabouttheextentto
whichtheywishtosupportapprenticeshipplacesinparticularsectors,inthecontextof
otherspendingprioritiesandpolicygoals.
•Someimprovementsinthequalityofemployer-ledapprenticeshipsoverallcouldbe
createdbytheintroductionofaminimumwageifitincentivisesemployerstoseek
waysofimprovingthereturnontheirinvestmentinhigherwages.
•Morebroadly,ourresearchsuggeststhatgovernmentsmaywishtomaintainapolicy
focusonwork-basedapprenticeshipsandreconsidertheirapproachestoprogramme-
ledapprenticeships,atleastinsomeindustries.TheSkillsCommission(2009)hassome
usefulsuggestionsforhowthiscouldbeachieved.
Clarityandtransparencyonminimumwagerulesforapprentices
Onespecificpointthatemergedfromourresearchwasthelackofclarityaroundminimum
wagerulesforapprentices.Thiswasidentifiedbyapprenticesinfocusgroups,some
employersandanumberofcareersadvisers.Researchparticipantstendedtobeawareofthe
minimumwageexemptionsforyoungerapprenticesbutwerelessclearabouttheageat
whichtheNMWbecomesapplicableforapprenticeswhohavebeendoinganapprenticeship
formorethanayear.
InthetwocaseswherewefoundapprenticeswhoseemedtobeentitledtotheNMWbut
werenotreceivingit,thislackofclarityamongbothapprenticesandtheiremployers
appearedtobethemainexplanation.Careersadvisersalsofelttheymaybeabletoprovide
cleareradvicetoyoungpeopleaboutapprenticeshipsifapprenticepaywerebroughtintothe
NMWframework.
OurresearchsuggeststhatbringingapprenticepayintotheNMWframeworkcouldhelpto
simplifypayarrangementsforyoungpeople.ThiscouldhelpimprovecompliancewithNMW
legislationamongemployerswhoemployapprenticesandenableyoungpeopletoreceive
moreaccurateandstraightforwardinformationabouttheirwageentitlementsasapprentices.
9.Ingroupapprenticeshipschemes,apprenticesareemployedbytrainingprovidersand‘hiredout’to
employers.Thisreducessomeoftheemployercostsassociatedwithemployingapprenticesandthereis
someevidencefromAustraliathatitcanleadtobetteroutcomesforapprentices.
References
DenvirA,PearmainDandCoxA(2008) LPC2008SurveyofEmployers:Apprenticeexemptions
Brighton:InstituteforEmploymentStudies
FongBandPhelpsA(2008)ApprenticeshipPay:2007surveyofearningsbysector,DIUSResearch
Report08-05,London:DepartmentforInnovation,UniversitiesandSkills
HughesMandMonteiroH(2005) ImprovingtheGradeinWork-BasedLearning London:Learning
andSkillsDevelopmentAgency
LowPayCommission(2009)NationalMinimumWageReport2009London:LowPayCommission
OfficeforNationalStatistics(2009)Post-16EducationandSkills:Learnerparticipation,outcomesand
levelofhighestqualificationheld,StatisticalFirstReleaseCoventry:DataServiceforFurther
Education
SkillsCommission(2009)ProgressionThroughApprenticeships:ThefinalreportoftheSkills
Commission’sinquiryintoapprenticeshipsLondon:SkillsCommission
SteedmanH(2008)TimetoLookAgainatApprenticePay?Gettingcost-sharingright, SSDACatalyst
Issue5,London:SectorSkillsDevelopmentAgency
TUC(TradesUnionCongress)(2008) StillMore(BetterPaid)JobsfortheBoys London:TUC
Annex:Copyofthesurveyofcurrentapprentices
Thankyoufortakingthetimetocompletethisshortsurveyonapprenticepayrates.Your
answerswillhelpustounderstandthechoicesyoungpeoplemakeabouttheirfuture
employmentandeducation.Thesurveyshouldtakeabout10minutestocomplete.Your
answerswillremainconfidential.
Whenyouhavecompletedthesurvey,youwillhavetheopportunitytobeenteredintoa
drawtowinoneoffiveprizesof£50vouchersfromyourchoiceofAmazon,SeeTicketsor
iTunes.
1.Howoldareyou?
16
17
18
19
20
21
22
23
24
24
25+
2.Whatgenderareyou?
Female
Male
3.Doyouconsideryourselftohaveadisability?
Yes
No
Notsure
4.Howwouldyoudescribeyourethnicbackground?
White
Mixed
AsianorAsianBritish
BlackorBlackBritish
Chinese
Other
Prefernottosay
5.Whatsubjectisyourapprenticeshipin?
Agriculture,horticultureorotherland-basedindustries
Businessandadministration
Earlyyearsandeducation
Electro-technical
Engineeringandmanufacturing
IT
Retail
Construction
Hairdressing
Hospitality
Leisure,travelandtourism
Motorindustry
Healthandsocialcare
CustomerService
Other(Pleasespecify)
6.WhichpartoftheUKdoyoulivein?
England
Scotland
Wales
NorthernIreland
7.Onaverage,howmanyhoursaweekdoyouworkforyouremployer,notincludingany
timedoingtraining?
Lessthan20hours
Between20and30hours
Between30and40hours
Morethan40hours
8.Inanaverageweek,howmanyhoursdoyouspendgettingon-the-jobtraining?
On-the-jobtrainingiswheresomeoneprovidesadvice,showsyouhowtodosomethingor
coachesyouwhileyouaredoingyoureverydaywork.
Idonotnormallygetanyon-the-jobtraining
Lessthan1hour
Between2and5hours
Between5and10hours
Between10and20hours
Morethan20hours
9.Inanaverageweek,howmanyhoursdoyouspendgettingoff-the-jobtraining?
Off-the-jobtrainingistrainingawayfromyoureverydayworkplaces,suchastraining
sessionsatcollegeorelsewhere,workshops,distancelearning,andtimespentlearning
throughworkbooksorCDRoms.Thiscouldstillbetheplacewhereyouwork,butwouldbe
awayfromyoureverydayworkarea.
Idoperiodsof‘block’trainingawayfromtheworkplace
Idonotnormallygetanyoff-the-jobtraining
Lessthan1houraweek
Between2and5hours
Between5and10hours
Between10and20hours
Morethan20hours
10.Howlonghaveyoubeendoingyourapprenticeship?
Lessthan6months
Between6and12months
Between1and2years
Between2and3years
Morethan3years
11.Howlongisyourapprenticeshipexpectedtotakeoverall?
Lessthan1year
Between1and2years
Between2and3years
Between3and4years
Morethan4years
Notsure
12.Whatwereyoudoingbeforeyoustartedyourapprenticeship?
Inschoolorcollege
Doingalowerlevelapprenticeship
Inajobwiththesameemployer
Inajobwithadifferentemployer
Lookingforwork
Somethingelse(pleasespecify)
13.Whydidyoudecidetodoanapprenticeship?(Tickasmanyasapply)
Wantedtogetpaidfordoingtraining
Neededtoearnmoney
Interestedinthesubject
Wantedtogetaqualification
Wantedtolearnaskill
Didn’tlikeschool
Didn’twanttogotouniversity
Friendsweredoingthem
Someonerecommendedit(likeaparent,teacher,employerorcareersadviser)
Nootheroptionwasavailable
Other(pleasespecify)
14.Didyouthinkseriouslyaboutanyofthefollowingoptionsbeforedecidingtodoan
apprenticeship?Pleasetickasmanyasapply.
Gettingajobwithoutanapprenticeship
StayinginthejobIhadalreadybutwithoutdoinganapprenticeship
Goingtocollege
Stayingonatschool
Goingtouniversity
Takingagapyear
Didn’tconsideranythingelse
15.Doyoureceiveaneducationalmaintenanceallowance(EMA)oranyothertraining
allowance?
Yes
No
16.Howmuchareyoupaidperweek,beforeyouhavepaidanytaxornationalinsurance?
Donotincludetipsorovertime.
Idonotgetawage
£0-£49
£50-£79
£80-£94
£95-£104
£105-£119
£120-£149
£150-£199
£200-£300
Morethan£300
17.Inatypicalweek,howmuchdoyouearnintips?
Idonotgetanytipsinmyjob
£1-£10
£11-£20
£21-£30
£31-£40
£41-£50
£51+
18.Inatypicalweek,howmanyhours’overtimedoyouwork?
Idonotusuallydoanyovertime
Lessthan1hour
Between1and5hours
Between5and10hours
Between10and20hours
Morethan20hours
19.Howmuchdoyounormallygetpaidperhourforanyovertimethatyoudo?
Idonotnormallydoanyovertime
Nothing
£1-£3
£4-£6
£7-£10
£11+
20.Didyouknowhowmuchyouwouldgetpaidbeforeyoustartedyourapprenticeship?
Yes,Iknewtheexactamount
Iknewtheroughamount
No
21.Howimportantwasthefactthatyouwouldreceiveawageinyourdecisiontodoan
apprenticeship?
Veryimportant
Important
Notveryimportant
Didnotthinkaboutitatall
22.Doyouthinkwhatyougetpaidatthemomentis:
Toohigh
Aboutright
Toolow
Don’tknow
23.Hasyourpaychangedsinceyoustartedyourapprenticeship?
Payhasincreased
Payhaddecreased
Payhasstayedthesame
Notsure
24.Areyouexpectinganychangesinyourpaybeforetheendofyourapprenticeship?
Ithinkmypaywillgoup
Ithinkmypaywillgodown
Ithinkmypaywillstayaboutthesame
Notsure
25.Howimportantisittoyouthatyourpayincreases?
Veryimportant
Important
Notveryimportant
Doesnotconcernmeatall
26.Doyouthinkyouwillfinishyourapprenticeship?
Yes
No
Notsure
27.Ifyouthinkyoumightnotfinishyourapprenticeship,pleasetelluswhy.Pleasetickas
manyasapply.
Iintendtofinishmyapprenticeship
Wanttoreturntofull-timeeducationortraining(includinguniversity)
Havebeenofferedajobwithcurrentemployer
Havebeenofferedajobwithanotheremployer
WanttolookforajobbecauseIneedtoearnahigherwage
Notenjoyingmyapprenticeship
Apprenticeshipisn’twhatIexpected
Notgettingonwithmyemployerand/orworkcolleagues
Thequalityofthetrainingispoor
Family/personalreasons
28.Whatdoyouthinkyoumightdoonceyouhavecompletedyourapprenticeship,orifyou
leavewithoutcompletingit?Tickasmanyasapply.
Doanapprenticeshipatahigherlevel
Continuetoworkatthesameemployer
Returntocollegeorschool
Workinasimilarjobasmyapprenticeship
Workinadifferentjob
Notsure
Somethingelse(pleasespecify)
29.Whatdoyouthinkthebenefitsofdoingyourapprenticeshipwillbe?Pleasetickasmany
asapply.
Developskillsthatwillbeofbenefitinfuturework
Gainedagoodqualityqualification
Givenmeanopportunitytogoontohigherleveltraining
Improvedmyjobprospects
Improvedmyfutureearnings
Madememoreconfidentaboutmyabilities
Madememoreenthusiasticaboutlearning
Improvedmyteam-workingskills
Improvedmyproblem-solvingskills
Improvedmycommunicationskills
Improvedmyliteracyandnumeracyskills
GivenmemoreofanideaaboutwhatIwanttodointhefuture
GivenmegoodcontactsintheindustrythatIwanttoworkin
Donotthinktherewillbeanybenefits
30.Weneedtoknowwhatkindofapprenticeshipyouaredoing.Thiswillvarydependingon
whichpartoftheUKyoulivein.
IfyouliveinEngland,pleasegotoquestion27
IfyouliveinNorthernIreland,pleasegotoquestion28
IfyouliveinScotland,pleasegotoquestion29
IfyouliveinWales,pleasegotoquestion30
31.IfyouliveinEngland,pleasetelluswhatkindofapprenticeshipyouaredoing.
Whenyouhaveansweredthisquestion,pleaseclickonthe‘next’buttonatthebottomof
thepage.
Apprenticeship–Level2
AdvancedApprenticeship–Level3
HigherApprenticeship–Level4
32.IfyouliveinNorthernIreland,pleasetelluswhatkindofapprenticeshipyouaredoing.
thepage.
ApprenticeshipsNI–Level2
ApprenticeshipsNI–Level3
33.IfyouliveinScotland,pleasetelluswhatkindofapprenticeshipyouaredoing.
thepage.
Skillseekers–Level2
ModernApprenticeship–Level3
34.IfyouliveinWales,pleasetelluswhatkindofapprenticeshipyouaredoing.
thepage.
FoundationModernApprenticeship–Level2
ModernApprenticeship–Level3
Thanksforcompletingthissurvey.Ifyouwouldliketobeenteredintoaprizedrawtowin
£50ofvouchersforAmazon,SeeTicketsoriTunes,pleaseenteryournameandaddress
below.Therearefiveprizestobewonintotal.Yourpersonaldetailsandanyinformationyou
providetouswillbekeptconfidentialatalltimes.
35.Optionalpersonaldetails
Name
Address
Address2
City/Town
Postcode
Country
Emailaddress

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