The contribution of apprenticeships to the economy is now beyond doubt. A Centre for Economics and Business Research report yesterday revealed the £34 billion contribution apprenticeships will make to the UK economy this year, including £2.4 billion in London.
How is this possible? The gains come from reducing the numbers on unemployment benefit and from training more highly skilled workers, who then earn more and pay more tax. Businesses win by retaining skilled staff for longer.
I started my career as an apprentice and I’ve seen first-hand what apprenticeships can deliver. As a young lad from a mining region in South Wales, I left school at 15 knowing that getting on an apprenticeship was the only chance I had to get ahead. I was lucky, and was taken on by Lucas Girling, a factory that made car parts. I clocked on at 7am each day and spent my time studying and working in the factory, where I was taught all the skills I needed for the shopfloor.
The company saw my potential and I ended up doing a six-year apprenticeship with them, including time studying engineering and management at Newport College and then at university.
Now, as chairman of Crossrail, I’m determined that we do our bit to help young people achieve their full potential and leave a lasting skills legacy for London.
I am proud that Crossrail has already delivered more than 370 apprenticeships: we will undoubtedly exceed our initial target of 400. We look for people who have a positive attitude and are hard-working. In return we provide excellent training and the chance to progress within our business and the wider industry.
Around two out of five of our apprentices were unemployed before starting their apprenticeship. They have been trained in a range of professions, from construction to accountancy, quantity surveying to business administration.
We have also established a dedicated Tunnelling and Underground Construction Academy at Ilford, only the second of its kind in Europe, which has trained more than 7,000 people, 2,000 of whom were previously out of work. The intention is that the academy will continue long after Crossrail is complete, providing recruits for other London infrastructure projects such as Thames Tideway and Crossrail 2.
Since April 2009 Transport for London and its suppliers have created more than 5,000 apprenticeship roles, supporting the Mayor’s campaign to create 250,000 such roles by 2016. While many are based in London, others are employed across the UK as a result of TfL contracts.
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But London lags behind other regions in the number of apprentices. There is more we can do collectively to boost the city’s economy and help young people get a step up. That’s why today I’m urging every employer in the capital to consider taking on an apprentice.
There are still far too many employers who do not invest in their training, and in my opinion are the poorer for it. With one in seven young people unemployed in the UK and only around 15 per cent of employers employing apprentices, there is significant opportunity for employers to attract new skills, while providing employment for those not in work. And in my experience, the companies willing to invest in apprentices are the ones that perform the best.
