The UK apprenticeship system faces an increasing gap between demand and supply, which could have far-reaching consequences for the nation’s skills pipeline.
According to the Overcoming Barriers report by The St Martin’s Group, a growing number of young people and mature workers are expressing interest in apprenticeships, but the system is currently ill-equipped to meet this surge in demand.
The report identifies the key obstacles to apprenticeship growth and proposes strategies to unlock more opportunities. Here are the key findings:
Rising demand for apprenticeships
The demand for apprenticeships in the UK is set to grow significantly over the next decade. But as the population of young people increases and mature workers seek reskilling opportunities, the gap between interest and actual apprenticeship starts will widen.
Currently, in England, for every one apprenticeship, there are about 4.4 people who want to start. This issue is even bigger for higher-level apprenticeships.
And it’s not just young people wanting apprenticeships. Older workers are also looking for apprenticeships to gain new skills and stay competitive in their jobs.
This increasing interest is good news for employers, particularly in sectors experiencing critical skills shortages. However, the growing demand presents a challenge: how can the apprenticeship system scale to meet the needs of learners and employers across different regions, sectors, and demographics?
What’s stopping growth?
One of the biggest problems is that the current apprenticeship system is too complicated. Many employers, especially small and medium-sized enterprises (SMEs), don’t understand how to get started or how the funding works. This makes them less likely to offer apprenticeships. Additionally, the lack of flexibility in programme design – such as the requirement for a minimum duration and specific qualifications – limits the ability of employers to customise training to their needs.
SMEs have their own challenges. They often don’t have enough time or money to manage apprenticeship programmes or hire at different times. Because of this, they don’t always attract a lot of candidates.
SMEs also tend to hire people from local or disadvantaged communities, but they need more financial support to train and manage apprentices.
Supporting disadvantaged learners
Apprenticeships can help people from poorer backgrounds move up in life. However, they often face more problems accessing these opportunities. Even though individuals from economically deprived areas are more likely to be interested in apprenticeships, many of them live in areas where it’s harder to find opportunities. Add in things like travel costs, logistics, and losing out on benefits, and it’s even harder for them to start an apprenticeship.
To solve this, the report says there should be more financial support for these learners, such as travel funds and maintenance loans. It also suggests giving better career advice or doing more outreach in schools, especially in areas where apprenticeships are less known.
Proposed solutions
The St Martin’s Group gives several ideas to help create more apprenticeships. One idea is to make the system more flexible, especially for SMEs. Allowing businesses to offer training in smaller parts (modular training) could help them create more apprenticeship roles. The report also suggests setting aside a special budget for apprenticeships to make sure there is enough money to meet demand.
Another suggestion is to bring back cash bonuses for hiring apprentices. This worked well during the COVID-19 pandemic when the government offered £3,000 per apprentice. Finally, the report calls for a support system to help SMEs manage apprenticeship programmes more easily.
Apprenticeships are key to solving the UK’s skills gap, but changes are needed to create more opportunities. By making the system simpler and offering more support, we can make sure more people can become apprentices, helping both businesses and learners.
