The first few months of rolling out foundation apprenticeships were always going to expose the pressure points in a system still finding its feet. Early numbers don’t indicate a programme is failing. They reveal where policy must now evolve to meet the realities employers and young people face.
Foundation apprenticeships are level 2 programmes for people aged 16 to 21, or up to 24 if the person has an education, health and care plan, is a care leaver or has been in prison.
They have been launched at a time when the numbers of those not in education or employment (NEET) has reached the highest level in over a decade.
Our feedback from employer partners is that young people consistently lack work-ready skills. With a report by The King’s Trust finding that almost half (48 per cent) of young NEETs feeling unconfident they will be able to find a stable job in the future, foundation apprenticeships are vital in that they provide real-world experience, structured support and employability skills development. However, our early engagement with employers across retail, hospitality and care found the current model lacks the clarity, flexibility and alignment required, which may go some way to explaining the sluggish start.
Early data shouldn’t push government or industry backwards, though. Instead, it’s a signal: refine the model, sharpen the offer.
Employers still face many barriers
Frontline sectors like care face a myriad of challenges. Businesses are juggling inflation, mentoring, compliance and operational demands.
Meanwhile, in sectors such as data and digital the pressures are different, but just as significant. For example, technology is evolving at a rapid pace. The advent of artificial intelligence (AI) means firms are increasingly hesitant to hire young talent until they have certainty on how their competencies can map to future skills needs.
In addition, employers believe that the assessment system is still not clearly defined, especially given ongoing reform across the broader apprenticeship assessment framework. Clear, consistent national guidance is imperative on expectations, evidence requirements and how employability competencies should be judged.
Funding is also a barrier. Employers receive incentive payments of up to £2,000 for hosting foundation apprentices, on top of the existing £1,000 payment businesses receive for 16 to 18-year-old apprentices.
Yet this level can fall short of the real cost of onboarding people who need intensive early support. In the care sector, for example, employers must invest significant time before a learner can meaningfully contribute. Arguably, without additional onboarding support such as supervision stipends or wage co-investment, employer hesitation will remain.
And while the chancellor announced £820 million to fund a “youth guarantee”, this doesn’t cover 16–17-year-olds – for whom this support could be critical and act as a preventative measure to alleviate the NEET crisis.
The levy system has historically been plagued by large amounts of unspent funds. Following the autumn Budget, employers will have half the time to spend this money.
Unless the reformed growth and skills levy explicitly ring-fences or prioritises entry-level routes, and clarifies how funds can support onboarding, employers will continue to view them as high-risk, high-cost propositions.
Clear, practical levy rules are essential to convert unspent resources into real opportunities for young people, especially 16–17-year-olds outside the youth guarantee who rely entirely on employer willingness to take them on.
Eight-month courses are too long
Our research with employer partners found different sectors need different approaches and models. One size doesn’t fit all. For example, care needs emotionally ready learners and a faster gateway to level 2 once competencies are safe.
An eight-month course is too long for many businesses. I have heard the same question asked by many: Why would we recruit a young person for eight months and then put them onto a level 2, without reducing the duration of a level 2?
For fast-paced sectors like digital, where operational pressures move faster, eight months can feel misaligned, becoming a bottleneck rather than a bridge. To make foundation apprenticeships viable, the reformed levy must enable genuine flexibility: shorter on-boarding, modular units and competency-based progression that lets employers advance learners as soon as they are ready, not according to an arbitrary time requirement.
If the government is serious about tackling youth unemployment, it must work with employers to assess what is and isn’t working – and look beyond the statistics to ensure foundation apprenticeships truly deliver on their promise.
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