Commenting on Government figures showing a 27% year-on-year drop in the number of apprenticeships started, Verity Davidge — head of Education and Skills Policy at EEF (www.eef.org.uk) (the manufacturers’ organisation) — said: “These figures should act as a wake-up call to Government, which has failed to act on industry’s growing concerns around the Apprenticeship Levy.

“The fact that the drop isn’t as huge as the previous quarter is by no means a cause for celebration, as the Government figures are a snapshot of the time when most apprenticeships begin. The only ray of hope we can find is the increase in the number of higher apprenticeships.

“The overall trend is not just hampering employers’ ability to get the skills their businesses need, it is also taking away invaluable opportunities for the next generation to undertake training and secure a job.

“It is clear the Apprenticeship Levy and wider reforms aren’t working and need a radical rethink. Government must listen to business concerns and ensure that the Levy delivers the demand-led system that was promised to employers.”

The latest figures for Q1 of 2017/18 (August-October 2017) show: 114,400 apprenticeship starts, a decrease of 26.5% from the 155,600 reported for the same period in 2016/17; 52,000 at intermediate level, a decrease of 38% from the 84,000 in Q1 of 2016/17; 50,800 at advanced level, a decrease of 18.8% from the 62,500 in Q1 of 2016/17; and 11,600 at higher level — an increase of 26.8% from the 9,100 in Q1 2016/17.

Kathleen Henehan, a research and policy analyst at the Resolution Foundation, said: “All in all, the latest figures point to a continued fall in apprenticeship numbers — albeit one that appears to be slowing.

“While roughly one third of the total fall can be attributed to apprentices aged 25 and older taking lower-level apprenticeships, we should be concerned that falls have also occurred among those age 24 and younger.

“More positively, the rise in higher-level starts going to younger people is significant.”

Neil Carberry at the CBI said: “The drop in apprenticeship starts remains alarming and proves again that the Apprenticeship Levy isn’t yet working for businesses, apprentices and the economy. A fresh approach is needed to make skills reforms work.

“The CBI will continue in its calls to Government to evolve the Apprenticeship Levy into a flexible skills levy, so firms can fund training for their people whatever the form of high-quality course they do; and policy makers must collaborate more closely with businesses and learning providers to design a stable national framework for skills.”