A complicated funding model for apprenticeships means we miss the people we need
The number of new apprentices is on the rise, but the number of people actually finishing their courses is falling, as young people are put off by low wages and low quality courses. Our workforce desperately needs talented new workers, and we’re missing out, writes Simon Eaves
The National Apprenticeship Week is a moment to celebrate everything that is good about apprenticeships, how they enable career trajectories that wouldn’t otherwise be possible, but also to take a look at how they could be improved.
Last month, the International Monetary Fund predicted that Britain’s economy will fare worse than any other advanced nation. The projections have come under criticism from some corners of the economic and political establishment, but clearly the UK faces a unique set of challenges.
Skills is a key part of this equation, an issue which successive governments have tried to address. According to the Federation of Small Businesses, 80 per cent of small firms are struggling to recruit applicants with suitable skills. Meanwhile, the apprenticeship levy has had mixed responses from business leaders.
According to research from Accenture, less than half of UK companies are actively creating more diverse kinds of pathways, such as apprenticeships, to deliver advanced skills.
There was a false start in the apprenticeship sphere, with the number of people participating in schemes improving over the last year. But at the same time, the rate of apprenticeship achievements fell. The eventual outcome is that we are worse off in developing the skills in technology, engineering, data science and design, which are becoming increasingly important. According to the education and skills think tank, EDSK, almost half of apprentices failed to complete their courses in 2021, with many of them blaming the poor quality of the training offered.
It also means we are missing an opportunity to boost social mobility and drive more productivity and growth in the UK.
The challenges facing employers in the apprenticeships system have been well documented, including challenges around funding and the notoriously complex system they must navigate. Simultaneously, young people are deterred from taking up apprenticeships as a result of low wages and lack of high-quality training available to increase their future career prospects.
Giving up on apprenticeships in the skills gap conundrum won’t do, but we do need to take a fresh look at how we build these courses to address the skills deficit. This requires long-term planning now if businesses are to access, create, and unlock talent in the future.
To level the playing field to offer better opportunities to all young people, particularly those from lower socio-economic backgrounds, businesses should look to partnerships rather than just hoping to solve the issue on their own. By working with public bodies, such local authorities, businesses can pool resources and expertise to boost high growth areas with clear skills shortages. This model will help SMEs around the UK to address shortages more effectively in specific regions, helping to unlock a diverse talent base by connecting them with local SMEs, especially those not in education, employment, or training.
Instead of complicated funding models, we need innovation in pre-apprenticeships programmes to attract young people to key growth sectors. For many young people, particularly from low-income backgrounds, the challenge starts with knowing when and where to find apprenticeships, let alone performing well in an interview.
It’s not simply about the skills offered in apprenticeships, but ensuring the right people end up in the right schemes. Employers, alongside local authorities, need to reach out into communities and provide robust pastoral and financial support to ensure their investment into apprenticeships is paying off.