APPRENTICESHIPS are already recognised as being a "vital part" of the Furness economy, as a new report says the Northern Powerhouse will play a crucial role in delivering three million apprentices by 2020.

Apprenticeships for Northern Growth says the region faces a shortfall in productivity compared to other areas, with a skills gap emerging before individuals leave school, as seen by lower levels of attainment by the end of secondary school.

But despite this, northern employers report similar, if not better, perceptions of the skills of school leavers. The North also has a disproportionate number of apprenticeships starts, with 36 per cent of all apprenticeship starts in England despite representing 23 per cent of the working age population.

There is significant uncertainty among northern employers about the likely effects of the Apprenticeship Levy.

Peter Sellen, chief economist at the Education Policy Institute said: "The North already plays an important role in training new apprentices and, given the significant economic returns that apprenticeships can have, there is a real opportunity for the North to galvanise its efforts in this area and generate much needed growth to productivity. But success requires employers to shape the reformed apprenticeship programme, including the new levy, so that it is able to deliver sustainable improvements to the local and national economy."

Furness College chief executive and principal Andrew Wren said: “Apprenticeships are a vital part of the economy here in Barrow and Furness and are highly regarded as a career progression path. School leavers are nearly three times more likely to take up an apprenticeship in this county than elsewhere, with 11 per cent of young people choosing this route as their post-16 destination.

“There are a wide range of apprenticeships available right through to higher and degree-level apprenticeships. As our students progress through their training, the increased skills they acquire will inevitably help to fill the higher level skills requirements we are facing in this county. Some 94 per cent of apprentices enrolled at our college at present work in the Cumbria Local Enterprise Partnership’s priority sectors and a further four per cent work in ancillary sectors supporting employers within an area of priority.

“Apprentices have the combined benefit of on the job training and academic and vocational qualifications as they usually spend a day a week studying at college. We know from our own experience as a college that our apprentices enhance our workforce. They are a valuable addition to our team and for the future. We employ a number of apprentices ranging from finance to digital learning. They are dedicated to their roles and bring fresh-thinking and innovative ideas to our organisation and often progress to senior roles.”

Director of business development and marketing Helen Wharton said Furness College was working with employers across south Cumbria to raise awareness of the opportunities available through the upcoming Apprenticeship Levy and would be holding a special event next month.

Mrs Wharton said: “We have been speaking to businesses about the levy and what it will mean for them to ensure they are levy-ready.

“There are significant opportunities for companies to ‘grow their own’ skilled workforce and it’s a great time to invest in apprenticeships and talk to us about training requirements.

“Employers with a wages bill in excess of £3m will pay the levy from April 2017 charged at a rate of 0.5 per cent of the entire pay costs. Those with a wages bill of less than £3m won’t pay anything, but will still be able to access funds to pay for apprenticeship training. The levy will help to support quality training and employers who are committed to training will be able to get more out than they pay in.”

Furness College is holding a special briefing for businesses regarding the impact of the levy and other changes to the way apprenticeships are funded, including access to new bursaries, at the Channelside campus on March 14 from 2.30pm.

Anyone who is interested in attending this briefing should contact the business support team at the college.