Apprenticeships aren’t the answer to everything. Members of The St Martin’s Group know this, and welcome reforms to the apprenticeship levy that will allow employers to spend it on other relevant training. Nevertheless, we must at the same time protect apprenticeships and bolster increasing demand.
To date, The St Martin’s Group’s (SMG) research has been focused on the benefits of apprenticeships for individuals, organisations and the economy and how, with the right support, we can maximise their return on investment.
However, benefits cannot be realised without opportunities, and there is clear evidence of increasing demand for apprenticeships that is not being met.
Efforts from government and business have been hugely successful in building the apprenticeship brand; so much so that for every apprenticeship start, there are on average four more young people who are interested in that opportunity.
This interest versus starts gap is even more pronounced for those from disadvantaged backgrounds.
This is the focus of The SMG’s latest report, ‘Overcoming barriers to opportunity; Stimulating Growth and Unlocking Supply in UK Apprenticeships’, which shows that demand for apprenticeships is on the rise, and businesses will need more support to keep pace.
Demand will continue to outstrip supply
In 2023, of the 1.3 million individuals who registered with UCAS, half a million were interested in an apprenticeship. Of these, around 357,000 are domiciled in the UK. This significantly exceeds the number of apprenticeship starts.
Commissioned by SMG, UCAS explored how the UK’s 18-to-19-year-old population growth and rising interest in reskilling and upskilling current employees will impact this further.
By 2030, modelling by UCAS projects there could be up to an additional 160,000 individuals interested in an apprenticeship. This increase will not only exacerbate existing pressure on supply but, according to the UCAS modelling, it will be felt much more acutely in certain levels, regions and industries than others.
With the barriers employers currently face and the new flexibilities afforded by the proposed growth and skills levy, there is a risk of apprenticeship starts declining as employers opt for alternative training pathways for their workforce.
We must protect apprenticeships to meet the increased demand for those who wish to pursue this pathway, and we must protect them so that individuals, employers and the economy continue to feel their benefits.
We can do this by making it easier for employers to create opportunities.
How to stimulate supply
As part of our research for the report, SMG convened 65 organisations over the course of two months, with the discussion focusing on how we can increase supply and meet demand.
This culminated in a strong message for a new government:
- keep what works well for employers;
- maintain an inclusive, all-age, all-level system that is quality-focused and employer-led, but take the opportunity to transform parts that act as barriers;
- incorporate necessary flexibilities in programme design and funding rules;
- encourage closer alignment of levy funds with the apprenticeship budget;
- and stimulate supply from SMEs, who play a significant role in provision.
There are five broad areas for consideration:
First, updating current parts of the system which would have a hugely beneficial impact at little to no cost over the shorter-term. This includes but not limited to removing the maths and English requirement as a prerequisite for completion and removing the 12-month minimum duration rule.
Second, protecting the apprenticeship budget, with closer alignment of funds collected via the Levy.The budget should be sufficient to uplift apprenticeship standards funding to reflect inflationary increases and the real cost of delivery.
Third, prioritising additional funding for apprenticeships to support SME engagement. Re-introducing financial incentives for SMEs and introducing a 20 per cent uplift in apprenticeship funding bands for SME employers will help increase their engagement.
Fourth, reviewing financial measures, including the impact to welfare benefits of taking up an apprenticeship. This is critical for improving access for the most disadvantaged apprentices and will improve social mobility.
And fifth, working in collaboration to optimise reforms and supporting Skills England to drive greater cohesion and simplicity of policy across government departments with mandates for education, jobs, skills and productivity.
These recommendations should be part of reforms that tweak the system, rather than overhaul it. Working together, businesses and government can remove barriers to uptake, plug current skills gaps, and stimulate economic growth.
Most importantly, they can ensure that apprenticeships are protected, so that all learners who are interested in apprenticeships can undertake a high-quality programme which will provide them with the skills needed to succeed in the economy of the future.
Not surprised to see no comments regarding quality of provision. The horror stories are prevalent regarding lack of coherence, quality, support etc. Maybe this might be a consideration in a future report?
An excellent example of leveraging impact from disparate statistics, which will hook those who don’t look past infographics…
Big bold statement declaring ‘For each apprenticeship start in England, at least 4.4 individuals are interested in that opportunity.’
But then says this is derived from 197k 18 year-olds in England expressing an interest in apprenticeships. Divided by the 45k starts by under 19s at level 3+ (4.4 ratio). So it’s not all individuals and not all starts – but it’s a fortunate way to get a low ratio to leverage against to manufacture an impactful message of acute demand.
Then follows various scenarios presented to generate some much bigger ratios, some over 40:1.
The subject sector breakdown is interesting as it compares all ages to young people. How are those ratios of over 18s interested in apprenticeships arrived at given the UCAS data doesn’t extend that far? And just what happened to the ratio for the Arts, Media and Publishing for young people. Zero interest or accidentally omitted?
If the DfE opened up better access to data and worked more closely with the sector on research and analysis, it might help de-politicise the sector and build more trust.