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The Topic: Skills SKILLS THE TOPIC 10 | 1ST - 7TH APRIL 2016 | UTILITY WEEK "Improving skills at higher levels is an economic imperative. The UK stands at around 20 per cent below the rest of the G7 countries." • Sue Husband, director, National Apprenticeship Service A pprenticeships have become a preferred option for utility compa- nies looking to rapidly nurture a cohort of employees capable of taking over from ageing indus- try veterans. Around half of the industry's workforce is due to retire by 2023, so promoting on- the-job training, oen involv- ing mentoring from those same experienced individuals who are soon to leave the workplace, is a sensible course of action. Accordingly, utilities have invested heavily in this strategy – and with promising results. Gas distribution company SGN has recruited 170 apprentices for its nine depots in the south of England and 103 in Scotland since it launched its programme in 2008. Each apprentice repre- sents an investment of between £90,000 and £140,000 over the three-year course held at SGN's Thatcham facility, shared with sister company SSE. It boasts a 97 per cent retention rate from its course. British Gas retains 95 per cent of its apprentices and cur- rently has hundreds in training across its six academies, spend- ing around £30,000 on each. Demand for places is high, with each place on offer receiving 30 applications. But utilities are not out of the woods yet. Some industry leaders If you want a job doing, do it yourself Utilities are embracing apprenticeships as a way of recruiting promising talent, but too many young people are ignorant of the career possibilities that apprenticeships offer. APPRENTICESHIP LEVY The government announced in the Autumn Statement and Spending Review in 2015, and reiterated in last month's Budget, that it would introduce an apprenticeship levy in April next year. This will be applied to all industries in the UK and will help fund three million new apprenticeship places by 2020. All employers with an annual wage bill of more than £3 million will need to pay the levy, which will equate to 0.5 per cent of their wage bill. Businesses in England that pay the levy and provide apprenticeships will be able to reclaim their levy contributions as digital vouchers to use to pay for training apprentices. The voucher system will not apply in Scotland, Wales and Northern Ireland. However, the government has said £500 m illion will be allocated, with the governments of these nations deciding how the funds are spent. Utility Week Stars Awards Hilton Manchester Deansgate 16 June 2016 There have been a record number of entries to this year's Utility Week Stars Awards, reflecting the will of the industry to recognise the skills and talent of its employees. The shortlist will be announced by Wednesday 6 April. Find out more and to book a table, visit www.utilityweekstars.co.uk have been dismayed by recent changes to government support for apprenticeship training – namely the introduction of the apprenticeship levy (see box, right), confirmed in the recent Budget statement. There's worry that the levy will confuse an already frag- mented skills funding landscape and add bureaucracy to the delivery of training. Aer the Budget, Schneider Electric said the chancellor missed a "cru- cial chance to deliver meaning- ful impact in productivity and learning". Some also think the levy will not help to deliver apprentice- ships at the right level or in sec- tors or disciplines where demand is keenest, instead simply bol- stering government's target to see three million new appren- tices start this parliament. While this ambition has merit, as the Institution of Civil Engineering's director of membership, Sean Harris, points out, "quality is key here". Utility employers are doing a lot to try and ensure their apprenticeship schemes are the schemes of choice – promoting a range of accredited qualifica- tions for all skills levels. During last month's National Appren- ticeship Week, for example, Northern Powergrid made a fan- fare of its cra apprenticeship programme, which represents an eight-year, £3 billion investment. But are these efforts to com- municate apprenticeship oppor- tunity hitting their mark? According to Engineering UK, despite more than four in ten 11-14 year olds saying they see a career in engineering as desir- able, nine out of ten school children surveyed by Adecco in 2015 were unaware that an apprenticeship could lead to a career in STEM industries. And it's not just the young who are unaware. A recent Brit- ish Gas survey revealed that 44 per cent of people in the UK would not consider an appren- ticeship as a route to beginning a new career. Almost a quarter believe they are too old, even though almost a third of cur- rent British Gas apprentices are in their thirties. Lucinda Dann, networks correspondent "Each SGN apprentice represents an invest- ment of between £90,000 and £140,000 over three years" Source: Engineering UK