The St Martin's Group

Overcoming Barriers to Opportunity: Stimulating Growth and Unlocking Supply in UK Apprenticeships

Overcoming Barriers to Opportunity: Stimulating Growth and Unlocking Supply in UK Apprenticeships​

The St Martin’s Group has published a new report highlighting the need to protect and expand apprenticeship opportunities in the UK. The report, titled “Overcoming barriers to opportunity; Stimulating Growth and Unlocking Supply in UK Apprenticeships,” underscores the growing demand for apprenticeships and the critical steps needed to meet this demand.

Against a backdrop of skills reform, with the introduction of the new Growth and Skills Levy and establishment of Skills England, there is a risk that apprenticeship numbers decline as employers opt for alternative training pathways for their workforce. Yet, as the report shows, there are not enough apprenticeships to meet current demand, and this is set to increase.

Key findings include:

  • In 2023, half a million of the 1.3 million individuals registered with UCAS expressed interest in apprenticeships, of which around 357,000 are domiciled in the UK. This far exceeds the available opportunities.
  • Currently, for every apprentice start, there are a further four young people interested in that opportunity.
  • By 2030, it is forecasted that this could increase by an additional 160,000 individuals.
  • The ratio of interested individuals to actual starts will be felt more acutely at certain levels, in certain industries, and in different regions of the country.
  • Individuals from disadvantaged areas are more likely to express an interest in apprenticeships than their less disadvantaged peers yet remain underrepresented in apprenticeship starts.
  • Employers, especially SMEs, are still facing significant barriers in creating the opportunities to meet the demand.
Download the Report

From discussions with 65 organisations from across a range of industries including retail, technology, construction, finance, logistics, healthcare, manufacturing, hospitality and energy, The St Martin’s Group puts forward a series of recommendations for a new government that should be part of reforms to tweak the apprenticeship system, rather than overhaul it.

The report calls for maintaining an inclusive, all-age, all-level system that is quality focused and employer-led, and five policy areas for consideration that will transform parts of the system to create more opportunity:

  • Updating current parts of the system which would have a hugely beneficial impact, at little to no cost over the shorter-term; for example, removing the maths and English requirement as a prerequisite for apprenticeship completion.
  • Protecting the Apprenticeship Budget, with closer alignment of funds collected via the Levy.
  • Prioritising additional funding for apprenticeships to support SME engagement by re-introducing financial incentives for SMEs to hire and manage apprentices.
  • Reviewing financial measures, including the impact to welfare benefits of taking up an apprenticeship.
  • Supporting Skills England to drive greater cohesion and simplicity on policy across government departments with mandates for education, jobs, skills and productivity.

Brenda McLeish, Co-Chair of The St Martin’s Group and CEO of Learning Curve Group, said:

‘The findings of The St Martin’s Group’s report highlight the critical need for us to protect apprenticeships and expand opportunities. While apprenticeships are not the solution for everything, we can ensure that they remain a viable and attractive pathway for individuals and employers by prioritising funding and removing unnecessary barriers’.

Jane Hadfield, Co-Chair of The St Martin’s Group and National Lead, Talent for Care and NHS Apprenticeships, Workforce, Training and Education, NHS England, said:

‘We must focus on widening access for disadvantaged individuals to ensure that everyone who wants to pursue an apprenticeship can do so. As the demand for apprenticeships continues to outstrip supply, it is imperative that we support all employers including SMEs who are the key to provision. This will not only help meet the growing interest in apprenticeships, but also drive economic growth and skill development across the UK’.

The report will be launched on Wednesday 11th September at an event in Westminster with over 100 business leaders in attendance.

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