The UK’s apprenticeship system has been a major policy focus over the past decade. This is welcome given they have historically provided a bridge from education to employment for young people and are valued by employers. International evidence also tells us they are an important and impactful pathway to employment, particularly for those most marginalised. Despite this, England’s system is skewed towards existing workers and older employees, leaving school and college leavers with fewer viable alternatives to higher and further education, and marginalised young people with fewer opportunities to access good work. If the government is serious about improving youth employment, a rebalancing of the system is needed – placing young people at its core.
The decline of youth apprenticeships
Since the apprenticeship levy’s introduction, overall apprenticeship starts have fallen sharply, and the number of apprentices from the most deprived areas also dropped, from 250,000 in 2015-16 to 150,000 in 2022-23.
A particular concern is the shift in apprenticeship starts away from young people towards older workers. A growing proportion of apprenticeships are now taken by those aged 25 and over – often upskilling those already in work, rather than offering a vital route into employment for the many that need it. The unintended consequence has been a system that sidelines young people, particularly the most marginalised.
Several factors have contributed to this. The apprenticeship levy has led many businesses to prioritise existing staff over new entrants and re-badge training effort to recoup their levy funds. Our recent research found that over half of employers surveyed admitted to doing so. The number of small and medium-sized employers (SMEs) offering apprenticeships has also collapsed since the levy’s introduction. This has eroded opportunities as SMEs are more likely to take on young apprentices and people with lower qualification levels.
The need for bold reform
The government acknowledged these challenges and has committed to rebalancing the system towards young people. This includes removing funding for some higher-level apprenticeships, introducing foundation apprenticeships, expanding work experience, and improving access through the youth guarantee. These are positive steps, but more ambitious action will be needed to restore apprenticeship opportunities for young people.
To rebalance the system, the government should introduce an apprenticeship guarantee for all 16- to 24-year-olds, ensuring access to high-quality opportunities. Our survey of over 2,000 organisations found 89 per cent of employers support this. Employers also supported a more flexible skills levy, with at least 50 per cent of funding ring-fenced for apprenticeships for young people and the rest for accredited training. Enhanced financial incentives for SMEs would encourage them to hire young apprentices, and there is an exciting opportunity with new foundation apprenticeships to build better bridges over the gap between education and employment.
Without decisive intervention, young people will continue to face a labour market that offers too few alternatives to university. A rebalanced apprenticeship system is not just a necessity – it is an investment in long-term economic prosperity.
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