Industry collaboration and better pay boost apprenticeships

Meeting the needs of employers and trainees can reverse recent decline in apprenticeships

Meeting the needs of employers and trainees can reverse recent decline in apprenticeships

15 Feb 2025, 5:11

If the UK is serious about solving skills shortages, supporting young people into employment and upskilling to meet demands in emerging sectors, apprenticeships must be at the centre of employer growth strategies.

For education providers, that means tackling outdated perceptions, ensuring apprentices earn competitive wages and strengthening employer partnerships.

Yet, enrolment in apprenticeships has declined 30 per cent since 2017. So why are they still underutilised?

A case of miseducation

Many employers know apprenticeships are a fantastic choice for their business. But apprenticeships can be difficult to navigate, and there is work to be done to ensure businesses of all sizes understand how they can access apprenticeships and the support available to them.

Plus, while some young people love the idea of earning and learning, there is often a misconception amongst parents or the public that apprenticeships are a second-tier option with limited career potential.

This is a huge frustration when we know the apprenticeships we run across NCG offer a wide range of knowledge, behaviours and transferable skills that equip learners with industry-recognised qualifications linked directly to employer demand and can lead to rewarding careers.

So, what can we do about it? Newcastle College has planned ambitious business numbers for 2025-26 alongside the introduction of six new apprenticeship standards to support growth.

Apprenticeships are uniquely effective because they are designed with employers from the outset, where they evolve in real time to meet employer, sector, and regional needs. 

Innovation constantly reshapes job requirements, and apprenticeships adapt accordingly. This agility is essential to support developments across industries.

Working with employers

The Persimmon Homes Academy at Newcastle College is an example of how, by working directly with employers, apprenticeships in construction provide an immediate talent pipeline, addressing persistent shortages in the industry.

The academy, launched in partnership with the college in 2024, provides bricklaying, joinery and roofing apprenticeships, ensuring that learners receive industry-standard training from the outset. With the direct support of Persimmon’s regional apprentice manager, apprentices gain hands-on experience and structured career progression within the company.

This kind of collaboration should be the norm, not the exception. If more industries adopted similar models, skills shortages in key sectors could be significantly reduced.

Employers often require specific skills that may not yet be incorporated into traditional provision, which can lead to a disconnect. To overcome this, Newcastle College has adopted a flexible, industry-responsive approach.

By closely collaborating with employers like Persimmon Homes, the college ensures apprenticeship programmes are continually updated to reflect the latest industry trends and standards.

This proactive approach not only bridges the skills gap but also builds stronger relationships between education providers and employers, ensuring apprentices are equipped with the skills employers need.

Pay competitive salaries

For apprenticeships to remain a viable alternative to full-time study, wages must reflect the value apprentices bring to businesses.

Currently, the national apprenticeship minimum wage is just £6.40 per hour – significantly lower than the real living wage. While some sectors, such as engineering and construction, can offer incremental pay rises, others, like hospitality and hairdressing, often have no choice but to adhere to the apprenticeship minimum wage, making recruitment a challenge.

Employers who invest in apprentices with structured pay progression see higher retention rates and a more motivated workforce.

Apprenticeships must not only be seen as a training route but as a financially attractive career choice. Government incentives should encourage and help businesses to pay apprentices fairly and reflect the long-term value they bring.

Rethinking apprenticeships in FE

Over the next two years we are keen to introduce new “dark green apprenticeships”, potentially in the digital and energy sectors, ensuring that sustainability is embedded into training at every level.

FE institutions and businesses must push for greater government support in funding, promotion, and a streamlining of bureaucracy. Without significant reform, we risk missing the opportunity to equip the next generation with the skills they – and the economy – urgently need.

Beyond National Apprenticeship Week, we have to keep shouting about apprenticeships and ensure they get the recognition they deserve.

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