Since their inception in 2015, degree apprenticeships have rapidly gained prominence. They offer a debt-free pathway to achieving a degree, blending academic learning with practical, on-the-job training.
Promoted as a means to address skills shortages, boost productivity and advance social mobility, degree apprenticeships have experienced significant growth, with over 170 standards now available in a range of sectors, across 101 providers.
However, research from the Edge Foundation, based on nearly 100 interviews with key stakeholders and conducted in collaboration with the universities of Bath, Oxford, and Huddersfield, reveals there are persistent threats to their long-term sustainability and capacity to foster diversity.
Regulatory and financial roadblocks
Education and training providers play a pivotal role in the development and delivery of degree apprenticeships. However, complex auditing, overlapping regulatory requirements and crucial employer liaison activities are highly resource intensive.
This means that compared to mainstream undergraduate provision they are more expensive to run and more administratively challenging. As one provider put it: “Why the heck are we doing this for £21,000 when it would be £28,000 and a lot cheaper to deliver because you don’t have skills coaches, and we don’t need to worry about Ofsted?”
Uncertainty around employer demand, coupled with changes in the policy landscape – with details of the growth and skills levy still up in the air – count against degree apprenticeships.
Employers also report barriers to engagement, particularly related to the apprenticeship levy.
Large organisations frequently cite underuse of levy funds due to bureaucratic complexities and restrictions on expenditure.
SMEs typically rely on levy transfers from large employers, facilitated by providers, to participate in degree apprenticeships.
The system is heavily reliant on informal networks and personal relationships, rather than fostering systemic collaboration.
Advancing social mobility and diversity
The potential of degree apprenticeships to enhance social mobility and diversify the workforce remains both celebrated and contested. Apprentices frequently cite the appeal of earning a wage while avoiding student debt, particularly those with caring responsibilities or those deterred by mainstream academic pathways.
And, encouragingly, some employers are using degree apprenticeships to attract women into traditionally male-dominated fields, such as engineering and IT.
But despite these advantages, our research paints a patchy picture of careers advice about degree apprenticeships that risks entrenching advantages for pupils in independent and higher attaining state schools.
As one employer explained: “If their schools really promote it, if their parents are supportive of it and they have access to social media, they have that digital network that allows them to see opportunities.”
Degree apprenticeships appear to be primarily targeted internally towards existing employees rather than school leavers, although there are signs of this changing.
The prime minister’s intervention on the growth and skills levy, asking employers to “rebalance their funding for apprenticeships [and] invest in younger workers”, signals policy levers may be pulled in this direction.
Nonetheless, the impact of degree apprenticeships as tools of social mobility is constrained by variable recruitment practices and inconsistent employer engagement with diversity goals.
The government should consider modelling the impact of differentiating levy funding available for degree apprenticeships by age and/or staff status, to encourage employers to diversify the workforce.
Enhancing collaboration and delivery
Modes of delivery also vary widely, and while flexibility allows for tailored approaches, it poses challenges for ensuring consistent quality and support.
The integration of academic education with workplace learning is particularly critical as this is the backbone of work-based learning.
Collaboration between providers, employers and apprentices is central to the success of all apprenticeships. Yet, our research highlights that effective coordination mechanisms and sufficient resourcing, such as regular reviews and dedicated liaison teams, are not uniformly implemented.
Miscommunication and a lack of understanding of apprenticeship requirements by employers and providers often impede progress. Successful examples demonstrate the value of close employer-provider collaboration and robust mentoring frameworks.
However, the availability and quality of mentorship remain uneven, with limited training provided for mentors. Providers and employers should work together to share best practice around mentoring and student support.
Degree apprenticeships are transforming what higher education can be, but their sustained growth and long-term future hinges on addressing regulatory, financial and collaborative challenges.
By streamlining processes, fostering inclusivity and strengthening partnerships, stakeholders can ensure degree apprenticeships continue to serve as a robust, equitable pathway into higher education and employment.
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