Increase in Apprenticeships by 2014/15

The government today announced moves to tackle the "current failings" in skills training, while admitting that savings will have to be made because of cuts in public spending.

Business secretary Vince Cable said the government wanted to improve workers' skills and engage them in learning. "If we are to achieve sustainable growth, nothing is more important than addressing current failings in skills training, and this strategy reflects this government's determination to do both.

"We are not in a position to throw money at the problem, but even against the backdrop of reductions, resource will be found to expand the apprenticeship programme for adults and support more people undertaking an increasingly respected form of vocational training."

He said reforms included expanding adult apprenticeships, so that by 2014-15 there will be 75,000 more places than under the Labour government's plans.

Government-backed loans will be available from 2013-14 for learners over the age of 24, while a "growth and innovation" fund of up to £50m will be launched.

Skills minister John Hayes said: "The government's skills strategy is one of the most important documents yet published by the coalition government. Helping business and individuals gain the skills they need is vital to helping the country gain economic strength and build sustainable growth in the long term.

"Despite a reduction in the further education and skills budget, we are continuing to protect and invest in programmes that provide the highest quality and greatest benefit to the maximum number of people."

Under the spending review, the further education budget will be cut by 25% by 2014-15.

Dr Adam Marshall, director of policy at the British Chambers of Commerce, said: "We are pleased that the government's new approach to skills has business growth at its heart.

"The government has taken up a number of our long-standing recommendations, including the need to focus limited resources on technical skills, on apprenticeships, and on helping small and medium-sized businesses get access to the right workforce. After all, these are the companies that will drive employment and productivity growth in the years to come."

TUC general secretary Brendan Barber said: "There is much to welcome in the strategy - plans to increase the number of apprenticeships, continued free courses for adults who struggle with their reading and writing, and the recognition that unions are key to helping people sign up for learning at work.

"But at a time when UK employers are still putting far too little money into training their staff, cuts to the funding of courses which adults can currently access for free will force many more employees who want to get on at work to fund their own training.

"At a time when inflation is high, pay is being squeezed and hundreds of thousands of job losses are on the cards, paying for training is likely to be a very low priority for cash-strapped workers."

Sally Hunt, the University and College Union general secretary, said: "We welcome the government's intention to raise the status of vocational education, but is it realistic to expect private sector employers to take on three-quarters of a million adult apprentices during an economic downturn?

"Many adult students doing vocational courses are in low-skilled, low-paid jobs and will be forced to rely on loans to fund their study. We know from research that it is people from low-income households who are most likely to be put off by the prospect of debt. Some will decide expensive retraining financed through credit is not an option."

Christina McAnea, Unison's head of education, said: "This is not a strategy for sustainable growth. Cuts in further education and skills will be disastrous for learners, colleges and the wider economy. Millions of people will be saddled with debt trying to get a decent education if the government gets its way.

"Learners not only have to face huge job and course cuts: those seeking financial help will see their funding slashed and be left struggling to start out or re-skill after the recession."

Dr Mary Bousted, general secretary of the Association of Teachers and Lecturers, said: "We recognise the importance of having people with the right skills for employment, but we are disappointed that these proposals are totally focused on the economy rather than the needs of learners."