Investing in apprenticeships will secure Wales’ long-term prosperity

Luke Fletcher MS

For many years prior to entering politics I worked in hospitality – an experience which made me very alert to the vital role apprenticeships play in the industry, in nurturing talent and ensuring the long-term viability of the sector, where skilled and passionate people really are the backbone of the business.

But apprenticeship provision and delivery today in Wales is set against a very challenging backdrop for employers, further education colleges and work-based learning providers.

The past year or so has been a particularly turbulent one for the sector, where apprenticeships have taken centre stage in many important discussions about our workforce, our economy, and our communities.

It has been a stark reminder that the ripple effects of underinvestment extend far beyond education – they impact our entire economic future.

Underinvestment

The warning signs have been clear. In October 2023, we first learned of in-year cuts to the apprenticeship budget. Now, as highlighted in a recently published report – jointly commissioned by the National Training Federation for Wales and Colegau Cymru – the long-term consequences of sustained underinvestment are becoming impossible for the Welsh Government to ignore.

It gestures towards a broader point: investing in apprenticeships is not just about today’s economy and workforce – it is about securing Wales’ long-term prosperity.

Funding remains one of the most important issues. Alongside continuous and sustained funding, the sector wants to see apprenticeship funding restored to pre-EU structural funding levels.

This was a commitment made by previous iterations of the Welsh Government, but
the recent 14% cut to the apprenticeship programme has led to nearly 6000 fewer
apprenticeship starts, impacting skills developments, opportunities for people in Wales, and economic development.

This cut has also led to the Welsh Government missing one of the few targets they did set themselves for 125,000 new apprenticeship starts.

Furthermore, the health and social care sector is already grappling with serious challenges in recruitment, retention, and rising demand.

Solution

Apprenticeships have long been a proven solution, yet last year’s budget cuts triggered a staggering 34% decline in Level 2 Health and Social Care apprenticeship starts – the sector’s essential qualification.

If this trend continues, it risks undermining the Welsh Government’s £649 million investment in health and social care, supposedly one of its ‘priority areas’ following last summer’s so-called ‘listening exercise.’

Of the 6,000 overall apprenticeship losses, around 2,500 were in health and social care alone. Meanwhile, the Government has also refused to step in to save Cardiff University’s nursing course.

Apprenticeships are not a luxury; they are a necessity. That much is beyond debate. The impact of budget cuts goes far beyond financial spreadsheets. Apprenticeships represent life-changing opportunities, particularly for individuals from disadvantaged or marginalised backgrounds.

Cutting these opportunities means denying many the chance to gain skills and
a career for life. I am proud to Chair the Senedd Cross-Party Group on Apprenticeships, which is a group that was launched back in February 2024 with the support of Colegau Cymru and the National Training Federation for Wales, and was set up very much in response to the funding cuts.

It is proving to be a vital forum for advancing the important conversation on apprenticeships which brings together Members of the Senedd, apprenticeship providers and further education colleges to carve out a way forward for the sector in Wales, and to hold the Welsh Government to account.

Consequences

What comes through clearly from the group’s meetings is the need for a clear post-16 vocational education and training strategy with the resource to back it up, to tackle the lack of direction in current policy, and, ultimately, funding. A cash flat budget in priority sectors will have serious consequences.

The challenge is serious, but it is solvable, and meeting it will require commitment, resource and cooperation from policymakers, educators, industry leaders, and local communities.

Luke Fletcher is the Co-chair of the Senedd’s Cross-Party Group on Apprenticeships.