This week marks National Apprenticeship Week, an initiative that celebrates the benefits apprenticeships can bring to individuals, businesses and the wider economy.  It’s also the first National Apprenticeship Week under the new Labour government. With changes for apprenticeships planned as part of Labour’s wider employment reforms, we consider what employers can do to reduce barriers and increase access to apprenticeship schemes. 

There is increasing recognition of apprenticeships as a valuable pathway to employment, and also of the benefits that hiring apprentices can bring to an organisation. Over the last ten years, there’s been a push to increase the access to and quality of apprenticeships. Most notably, the Apprenticeship Levy, a tax on UK employers who have an annual pay bill of over £3 million, was introduced in 2017 as a way of funding apprenticeship training.  

How has this impacted on the utilisation of apprenticeships?

Despite these efforts, the number of new apprenticeships has dropped in recent years. Whilst the pandemic goes some way to explaining the decline, the number of apprenticeships started in the past two years has not yet recovered to pre-pandemic levels (the number of apprenticeships started are now down 34% since the introduction of the apprenticeship levy). This decline is especially noticeable amongst disadvantaged and underrepresented groups, including those from minority, deprived and lower socio-economic backgrounds.

What do the statistics show?

A research paper commissioned by the Sutton Trust has highlighted the following:

  • As well as changes in the number of apprenticeships which are available, the composition of apprenticeships has also changed, with a fall in share of Level 2 apprenticeships (which are equivalent to GCSE standard) and a marked increase in the share of higher level (Levels 4 and 5) and Degree Apprenticeships (Levels 6 and 7). 
  • The number of apprenticeship starts has fallen disproportionately among apprentices from most disadvantaged areas. 
  • Higher and Degree Apprenticeships have mostly helped those living in less deprived areas.
  • Young people have not been the main beneficiaries of the increased availability of Higher and Degree Apprenticeships. Those over the age of 25 make up the majority of participants in Higher Apprenticeships and over half of those in Degree Apprenticeships.
  • Disadvantaged individuals don't use Higher and Degree Apprenticeships more than university degrees. From this perspective, it is hard to see Higher and Degree Apprenticeships as a route to widen opportunities for individuals from more disadvantaged backgrounds. 
  • Individuals who were eligible for free school meals are under-represented at all apprenticeship levels, with the disparity growing at higher levels.
  • Overall, ethnic minorities are under-represented in apprenticeship starts. When broken down by age group, this under-representation is strong for 16-18 year olds (White British account for 90 per cent of starts) and for 19-24 year olds (White British account for 83 per cent of starts), but not for those aged 25 and over, where the distribution by ethnic grouping is much closer to that of the wider working age population.
  • Overall, females tend to choose apprenticeships in sectors that pay less than the sectors men opt for (such as health and care, rather than construction or ICT, for example).

What is contributing to these barriers? 

The following reasons are thought to be contributing towards barriers to young people accessing apprenticeships, all of which inevitably have a greater impact on younger people, and particularly those from disadvantaged backgrounds: 

  • General lack of ‘work readiness’: Employers can be reluctant to take on a young person/apprentices due to concerns about their employability skills and overall ‘work readiness’. Often, employers raise concerns about a lack of application and/ or interview skills and issues with workplace behaviour, which means younger people often lose out to older, more experienced applicants as a result. Equally, young people face increased anxiety and lack of confidence in their own skills when applying for jobs or courses, which is a particular barrier for those from disadvantaged backgrounds.

  • Lack of in-depth understanding about apprenticeships: Young people’s awareness of and interest in apprenticeships is rising, but it remains the case that apprenticeships are not as frequently discussed or encouraged as much as more traditional / conventional routes, namely A-levels and attending university. Many young people don’t fully understand  what apprenticeships entail, leading them to choose a higher paid job in the short term.

  • Not meeting GCSE English and maths requirements: Not having grade 4+ GCSE English and maths has been a key barrier to young people’s apprenticeship access. The Association of Employment and Learning Providers found that only one in four apprenticeships are open to learners without GCSE English and maths at grade 4+. In response to these concerns, the government has already taken steps to remove this barrier, announcing on 10 February 2025 that the requirement for apprentices over 19 to have an English and maths qualification will be removed with immediate effect. It will now be for employers to decide whether these skills are a mandatory requirement for the role. This includes for apprenticeships that have already started and employers have until 1 April 2025 to amend training plans accordingly. Whilst this is a significant change in entry requirements, the requirements for GCSE English and maths for 16 – 18 year olds is unchanged, which means the barrier for young people still remains. 

  • Lack of affordability: It is well known that apprenticeships (particularly at entry levels) can be low paid (the current national living wage for apprenticeships is £6.40 per hour, rising to £7.55 in April 2025) and travel costs to the place of work and study can be significant. The wider financial impact this can have on families is often overlooked, as leaving full-time education can affect eligibility for child benefits.

Will Labour’s proposed reforms help address these issues?

Foundation apprenticeships 

We have previously written about the government’s plans for apprenticeship reform here.

It’s clear that the focus of the government’s apprenticeship reforms is to increase employability for young people. In an effort to increase entry level apprenticeships, there is a plan to introduce foundation apprenticeships in 2025. Foundation apprenticeships were introduced in Scotland in 2015 and aim to act as a pathway for secondary students in their final years of study by allowing young people to explore career paths and develop employability skills alongside their academic studies, preparing them for work.

Details are yet to be announced, but this proposed change has been welcomed and could help address access barriers by increasing confidence and employability skills, hopefully leading to full apprenticeships.

Level 7 Apprenticeships 

As part of the reforms, employers will also be asked to rebalance their funding for apprenticeships and invest in young people. This will involve businesses funding more of their level 7 apprenticeships outside of the levy. Baroness Jacqui Smith explained that the decision to divert funding from level 7 towards young people is an “explicit choice” to “correct and rebalance” the system.

The announcement on level 7 funding is imminent and we expect this will be announced after National Apprenticeship Week. This is important for employers that use Level 7 apprenticeships and have plans to hire these apprentices in September of this year, as it’s unclear when any funding cut would come into effect. Employers may want to hold off providing contracts until this decision is announced, particularly if they rely heavily on funding.

Reform of the Apprenticeship Levy

As previously discussed, the Institute for Apprentices is being replaced with Skills England and the existing Apprenticeship Levy will be replaced with a levy that can be used for wider training opportunities and not just apprentices. This sits somewhat at odds with the focus on young people, as this new levy will be able to be used by people already in employment to enhance their career, rather than embarking on a new one. It is, however, unclear how much of the levy will need to be reserved for apprenticeships versus other training. 

Reducing minimum duration of apprenticeships

The government has confirmed that it will reduce the minimum duration of apprenticeships from 12 months down to 8 months from August 2025. The intention is that this will allow skills gaps to be filled more quickly, though this is probably only going to be effective for a limited number of apprenticeships where the relevant skills and training can be obtained in this short period. It’s therefore difficult to see this having a widespread impact on accessibility. 

What can employers do to help remove these barriers?

DEI, and social mobility in particular, is an item that is high on most forward-thinking employers’ agenda.  So what can employers do in practice to help remove access barriers?

  • Advertising for apprentices: Assess how future apprentices will find out about the apprenticeship opportunities you have on offer. As well as the traditional methods of advertising (such as on the careers section of your website and attending careers fairs), consider making use of technology, AI or digital platforms to attract ‘Gen Z’ talent and looking at your branding, website and use of social media to advertise roles.

  • Reviewing application processes: Consider your application process for apprenticeships, whether it is suitable for the audience that you are trying to target and whether it is accessible for all. The prospect of a multi-stage, intensive application process may put some young people off from applying, and these processes are usually better suited for applicants with stronger academic backgrounds. Is there a way in which you can streamline your application and interview processes?

  • Widening access through your outreach strategy: Think about collaborating with schools, charities and public organisations to raise awareness of opportunities that your business offers for young people. This could include attending careers fairs, work experience / taster days and school visits. Some employers also offer ‘ringfenced’ apprenticeship opportunities for students at partner schools.

  • Use of mentors and support: Introduce mentor schemes or Employee Resource Groups for young people joining your organisation to ensure they are supported throughout, receive appropriate pastoral care, safeguarding, mental health support and a general feeling of being part of a community of people who are in the same position as them.
  • Consider English and maths requirements: Employers should think carefully about whether maths and/or English are genuinely requirements for the role the apprentice is learning to do. Whilst it’s entirely reasonable that in some roles, either one or both qualifications are needed, employers should consider whether this is a course that can be undertaken alongside the apprenticeship and whether it can be funded.

  • Financial support and incentives: Consider whether your salary and benefit offering allows your apprenticeship schemes to be accessible to all. Is there other financial support you can offer, such as subsidised travel or lunch vouchers?

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