Apprenticeship starts rise as tax and wage hikes come into force

But adverts fall while vacancies begin to plummet

But adverts fall while vacancies begin to plummet

17 Jul 2025, 11:19

More from this author

Apprenticeship starts rose 7 per cent in April despite warnings the chancellor’s tax hikes and rises to the minimum wage would wreck recruitment.

Department for Education data published today shows the number of apprentice newcomers increased from 21,100 in April 2024 to 22,600 in the same month this year.

The rise was driven by new apprentices aged 25 or older and higher level apprenticeships – in line with recent trends.

However, adverts on Find Apprenticeship Training over the last three months – April, May and June – have decreased compared to those in the previous year by 22 per cent, 17 per cent and 18 per cent respectively. For each of those months in 2025 the number of apprenticeship adverts sat at just above 4,500.

Meanwhile, overall vacancies in April and May increased – by 17 per cent and 21 per cent – but this was “primarily due to the British Army, who placed 2,840 vacancies in April and 2,880 in May”, the data states.

The 6,500 vacancies on Find An Apprenticeship in June 2025 were 33 per cent down on those in June 2024.

Chancellor Rachel Reeves announced £40 billion in tax rises in her autumn budget, which kicked in from April.

This included increasing employer national insurance contributions by 1.2 percentage points and a national living wage rise of 6.7 per cent from £11.44 to £12.21 an hour, while the apprentice minimum wage went up 18 per cent to £7.55 an hour.

Business secretary Jonathan Reynolds admitted the increases were likely to impact companies’ ability to hire new staff and an FE Week investigation in November found early signs that apprentices were either being let go or recruitment was being put on hold in industries like hairdressing and early years.

However, the government did remove English and maths functional skills requirements for adults aged 19 and older in February – hoping to remove barriers to apprenticeships and increase starts and completions.

Today’s data shows that for the first three quarters of 2024-25 – August to April – overall starts have risen 2 per cent to 284,190 compared to the same period for the previous year.

Apprenticeship starts in March – a month before the tax and wage rises – surged by 18 per cent from 23,570 in 2024 to 27,900 in 2025.

Latest education roles from

Chief Education Officer (Deputy CEO)

Chief Education Officer (Deputy CEO)

Romero Catholic Academy Trust

Director of Academy Finance and Operations

Director of Academy Finance and Operations

Ormiston Academies Trust

Principal & Chief Executive

Principal & Chief Executive

Truro & Penwith College

Group Director of Marketing, Communications & External Engagement

Group Director of Marketing, Communications & External Engagement

London & South East Education Group

Sponsored posts

Sponsored post

Supporting the UK’s Transport Decarbonisation Plan Through Skills

The UK Government’s Decarbonising Transport: A Better, Greener Britain strategy sets a legally binding path towards a net-zero transport...

Advertorial
Sponsored post

Project power: ASDAN expands its qualifications portfolio

From 2026, ASDAN’s planned Foundation and Higher Project Qualifications will sit alongside its Extended Project Qualification[CM1] , creating a complete...

Advertorial
ATAs

Spotlight on excellence: Nominations now open for the Apprenticeship & Training Awards 2026

Nominations are open for the 2026 Apprenticeship & Training Awards, celebrating outstanding employers and providers with national recognition, a...

FE Week Reporter
Sponsored post

Funding Adult Green Skills

New sources of funding are available to finance the delivery of green skills to all learners. Government policy is...

Tyler Palmer

More from this theme

Apprenticeships

Revealed: DfE’s special payments to providers after funding blunder

Wheels in motion for convoy of claims after unprecedented payouts

Billy Camden
Apprenticeships

Lindsay Conroy appointed Association of Apprentices CEO

The former UCAS apprenticeships lead will replace Emily Rock

FE Week Reporter
Apprenticeships, Politics

Badenoch: I’ll double apprenticeships budget by slashing uni degrees

Leader of the opposition would reintroduce student number controls for 'poor quality' uni courses to fund apprenticeship boost

Shane Chowen
Apprenticeships, Politics

Starmer swerves a deadline for headline ‘two-thirds’ target

'If there’s no date for people to work towards, then it’s just a vague aspiration', says ex-SpAd

Billy Camden

Your thoughts

Leave a Reply

Your email address will not be published. Required fields are marked *

3 Comments

  1. JustSaying

    When are FE Week going to put some quality journalism into reporting upon the detail of the disastrous reduction, as a result of the civil service reform of apprenticeships, in apprentice starts with SME sized employers ? The headlines will be dramatic if you can be bothered to do the work! Not doing this makes you complicit in allowing the headlines to continue to hide behind public sector and levy numbers combined with the massive switch to higher level apprenticeships for already employed workers!