As The Northern Echo continues its Power to the North series on the bid for greater powers, Joe Willis assesses the benefit to economic development of devolved skills funding

IT'S easy to see why apprenticeships are so popular. If you're a young person, why land yourself with debts of up to £50,000 by going to university for three years when you can become an apprentice and get paid to work? If you don't see the sense in opting against a degree, your parents - who may be bankrolling the 15 hours of lectures a week - certainly will.

And if you're an employer, what's the point in hiring a graduate still in need of training to your company's specific requirements when you can mould a low-paid apprentice? Okay, they may be of little use for the first few months but their time as a skilled and loyal member of staff will hopefully come.

The Prime Minister is already a big fan of apprenticeships, viewing the posts as key to ending youth unemployment.

Indeed, David Cameron recently pledged to create three million apprenticeships by 2020, telling the country the move would “help give us the skills to compete with the rest of the world".

"It will mean more hope, more opportunity, and more security for our young people, helping them get on in life and make something of themselves," he added.

One method to increase the take up revealed this month by the Government is to consider firms' apprenticeship provision when bidding for large public sector contracts, meaning even those firms less-than thrilled about employing a school leaver or someone older who has been out of work for a spell has some encouragement.

Here in the North-East, more hope and opportunity are required and the region's business and political leaders have jumped on apprenticeship schemes as an important tool to drive the region's economy forward.

So far the results have perhaps been underwhelming with 26,730 apprenticeships started in the region in 2014/15 - down by 3,750 from a year earlier, and a drop of almost 12,000 on the figure for 2011/12.

But there remains hope that increasing the number of apprentices - both young and old - will help to fill the skills gap. In last year's strategic plan for the North-East, entitled More and Better Jobs, the North-East Local Enterprise Partnership stated that a skilled workforce was central to private sector-led growth.

As well as improving school attainment and increasing uptake in science, technology, engineering and maths subjects, the report called for a doubling of the number of apprenticeships available to young people in the region by 2018.

According to the North East Local Enterprise Partnership, the region has a shortage of highly skilled workers - only half of the area’s working age population has level 3 or above qualifications. This is lower than many regions and reduces the North-East's competitiveness, experts say.

On a recent visit to the region, CBI chief John Cridland said that while the North-East had world class businesses, it was let down by an education system which failed to give young people the skills needed by employers.

Work is already underway to tackle this skills gap, with the North East LEP forming an employment and skills board to give strategic direction on the skills programme with the economic plan. Among those sitting on the board are leaders from the Skills Funding Agency, the Department for Work and Pensions and trade unions.

In the south of the region, local enterprise partnership Tees Valley Unlimited has developed the Tees Valley Employment Learning & Skills Framework to identify how best to develop the workforce of the Tees Valley.

But politicians and business leaders want to do more and believe devolved skills funding can help.

In its devolution prospectus, the North East Combined Authority identifies having control over skills cash as a key aim for negotiations with the Government.

It envisages that the region would have powers and funding to deliver enhanced apprenticeships and to meet skill gaps in its growing sectors.

Tees Valley council leaders are also hoping for more of a say on skills.

But what are the benefits of the greater powers?

"In a word 'flexibility'," says Rachel Anderson, head of policy and representation at the North East Chamber of Commerce.

She says often businesses find skills gaps that simply do not fit into the funding streams that are currently available.

Mrs Anderson gives an example of a problem faced recently by Tees Valley firms who were looking for welders.

However, while there was plenty of welders applying for posts, they did not have the specific skills needed, meaning the companies had no choice but to recruit from Poland.

She says if the region had control of its skills funding, it would have been easy to provide a five-week course to up-skill Tees Valley welders to meet demand.

"We would have more flexibility to match the courses and the skills to what's needed. It may only need a minor tweak and we can maximise people into jobs."

Devolved skills funding may not make the biggest headlines when the region's devolution bids are discussed with elected mayors and major infrastructure improvements more likely to capture the public's imagination, but if the region is to make the most of the greater powers it seeks, more control over further education and apprenticeship budgets could be key.