Agenda item

Review of Apprenticeship Training Allowances

The report seeks agreement to the revised training allowances payable to Medway Council apprentices.

 

Minutes:

Discussion:

 

The Head of HR and Organisational Change introduced a report which

sought agreement to proposed revised training allowances payable to Medway Council apprentices. She clarified that whilst the financial implications set out in the report stated that the proposals could cost the Council an additional £20,500 to £34,300 per annum, the latter figure of £34,300 was calculated in respect of Level 4 apprentices. However, there were currently none at this level in the Council.

 

A Member referred to the target of recruiting 60 apprentices and asked what the extra costs would be if the proposals were agreed, given the report was based on the current number of 44 apprentices. The Assistant Director Organisational Services advised that each additional apprentice recruited would cost approximately an extra £500-600 per annum if the proposed increases were agreed. Managers would be largely expected to absorb these costs but there was scope for the some of the £800,000 set aside for pay to be used to fund this. It was important that apprentices were given meaningful roles and not seen as a solution to meeting budget savings.

 

There was a general consensus amongst Members that allowances should be increased both to address the issue of competitiveness with neighbouring employers and also as a matter of fairness. However, some Members queried how the proposed increases had been arrived at and whether they would actually address the concerns about competitiveness. Members were advised that rates had been benchmarked with local employers. The data had been analysed and other information taken into account such as living and travel to work costs in Medway when reaching a view about an appropriate increase. The proposed increases were in the middle of the ranges paid to apprentices locally and officers felt they were reasonable. One Member agreed the proposed increases were reasonable and pointed out some interns worked for no wages.

 

A recent national study on apprenticeships was referred to and concern was expressed that increasing numbers of under 19s may be missing out on opportunities to become an apprentice.

 

In conclusion, Members decided to support the recommended increases provided the matter was reviewed in the near future and the information requested at the meeting provided. The possibility of apprentices attending a meeting of the Committee to talk about their experiences was also raised

 

Decision:

 

The Employment Matters Committee:

 

(1)          agreed to approve the revised training allowances payable to Medway Council apprentices as follows:

 

Level 2 - £110 per week

Level 3 - £130 per week

Level 4 - £160 per week

 

(2)          requested a further review of allowances, to be completed within three months, in the light of Members’ concerns about whether levels are sufficiently competitive, with the outcome reported to the Committee

 

(3)          requested a briefing note providing information on the detail of the benchmarking exercise into rates paid to apprentices, the age profile of Medway Council apprentices and the contributions of apprentices to the Council

 

(4)          agreed that these allowances are reviewed as appropriate and any proposed changes are referred to this Committee.

 

Supporting documents: