APPRENTICES, training providers, further education colleges and the work-based learning sector as a whole have experienced a tumultuous few months.

We first heard back in October 2023 about the Welsh government’s decision to make in-year cuts to the apprenticeships Budget to the tune of £17.5 million. The Welsh government had briefed the sector to expect a 3.65 per cent cut for the next financial year, and modelled projections based on this figure.
 
It soon transpired, however, that this was to be coupled with a decision by the Welsh government to reverse their commitment to provide transition funding of £18m to supplement the loss of funds from the EU. Taken together, this would result in a reduction of approximately 24 per cent in the apprenticeship contract value for the next financial year.
 
Following these announcements, an initial analysis was provided by vital partners in the sector and an open letter from employer representatives sent to the Welsh government. It made clear the devastating impact such decisions would have: 10,000 fewer apprenticeship starts amounting to a staggering 50 per cent reduction. This would be the most rapid decline in training opportunities in Wales in the era of devolution.
 
Back when the cuts were first announced, the Economy Minister delivered the announcement in the Senedd with the justification that there was an apparent lack of demand for these programmes. This contradicted their own data, which showed an increase in apprenticeship starts in the first half of 2022-23 compared to the same period a year earlier.
 
Needless to say, the impact to people’s lives and to the Welsh economy would be enormous. To illustrate the vast economic impact that these cuts would have, the Cardiff and Vale College  group estimated that there would be a potential GVA loss of between approximately £77m and £106m in human health and social work activities. The total economic losses, in the worst-case scenario, would amount to £406.8m in the long term. Even the more conservative estimate was astronomical at £296.5m.
 
After outcry and fears that new entrants into apprenticeship programmes would fall off a cliff edge, Plaid Cymru brought forward a debate in the Senedd in January to call on the Welsh government to establish a sustainable, long-term funding model for apprenticeships and an assessment of the government’s spending cuts.
 
It never ceases to amaze how many strategy documents, speeches and policy statements made by the Welsh government are then rubbished, undermined and under-resourced.

The minister for the economy recently launched his Economic Mission, which has “a platform for young people, fair work, skills and success” as one of four key pillars. It’s difficult to see how their actions around apprenticeships achieve this, not least for those from disadvantaged backgrounds and marginalised groups for whom apprenticeships represent a potentially life-changing opportunity.
 
Investing in apprenticeships is an investment in the future workforce of Wales, in opportunities for our young people, in our economic recovery and in key sectors such as construction, engineering, health and social care. In healthcare for example, from August 1 2019 to April 30 2023, there were 26,095 apprenticeship starts in the healthcare and health and social care services.
 
These courses are typically for those working in social care, domiciliary care, clinical healthcare support, and other key roles within health and social care. These have accounted for an average of 28.27 per cent of all apprenticeship starts over this period.
 
There are also real concerns about the disproportionate impact these decisions will have on already marginalised groups. Working-class areas will be affected, as will women and older people.
 
Now, we heard on February 27 something of a silver lining — £5.25m will be restored to the apprenticeship budget. A welcome start, yes. However, the sector remains in a precarious place. Mixed messages and funding flip-flopping from the Welsh government have made it extremely difficult for the sector to plan for the long term.
 
Furthermore, it is not simply the case that, when the cut happens, it can be fixed with more spending the year after. These courses, relationships and support networks take time and hard work to build, and they will take much longer to return than they did to cut. The sector is looking at almost a decade of lost ground and an uphill road to recovery.
 
On February 6, we launched the new Senedd cross-party group on apprenticeships, with the help of Colegau Cymru and the National Training Federation for Wales, who have been instrumental allies throughout this whole debacle.

The group, which I have the privilege of co-chairing, will be acting as a forum for both the sector and Senedd members to discuss the issues facing apprenticeships and apprenticeship delivery across Wales.
 
The group promises to be a productive one and a crucial forum to continue this fight for apprentices and apprenticeship provision.

Luke Fletcher is MS for South Wales West and the Plaid Cymru economy spokesperson. Follow him on X @FletcherPlaid.