Apprenticeships: A Powerful Tool for Upskilling the Workforce
As the UK government considers reforms to boost business investment in workforce development, apprenticeships are emerging as a vital component in upskilling and reskilling professionals.
In his recent Spring Statement, Chancellor Rishi Sunak remarked that the government would “consider whether further intervention is needed to encourage employers to offer the high-quality employee training the UK needs.”
Among the various training approaches available, apprenticeships stand out for their structured, hands-on learning model that allows newcomers to industries to build practical skills while earning a wage.
Understanding Apprenticeships
Apprenticeships are paid positions that combine on-the-job training with formal education. Apprentices spend around 20% of their working hours in a classroom setting—typically at a college or university—and work toward a recognised qualification. These programmes can last from one to six years and range from entry-level (Level 2) to degree-equivalent qualifications.
While traditionally associated with trades like construction, engineering, and beauty, apprenticeships are increasingly being used in fields such as legal services and business. Many employers hope to see broader access to professions via apprenticeship pathways.
To be eligible, applicants generally need a GCSE or equivalent in English and maths—although some employers include this learning in the apprenticeship. No prior experience is required, which means businesses can develop their ideal employees from the ground up.
Apprenticeship Levy and Funding
Under the current UK system, certain employers are required to contribute to an apprenticeship levy. This applies to businesses with a payroll exceeding £3 million annually or those linked with other entities under Employment Allowance rules, where the combined payroll surpasses that threshold.
These employers must contribute 0.5% of their monthly pay bill. However, they can reclaim up to £5,000 per apprentice, depending on the total cost of training and employment.
Why Apprenticeships Benefit Businesses
Hiring apprentices can yield long-term returns for businesses. Apprentices often become highly skilled, loyal employees who outperform their peers in both performance and retention.
Christine Holland, Head of Apprenticeships at Reed, explains: “While some still view apprenticeships as an option for school-leavers without qualifications, the reality is they are a powerful entry point into the workforce. At Reed, our average apprentice is around 36 years old.”
She adds that the structured nature of apprenticeships—including formal assessments and continuous support—creates a more rigorous and effective development process than many standard training programmes. Every apprentice is paired with a qualified training provider to guide them through the programme.
Apprenticeship schemes also enhance recruitment efforts. “If you’re a small business offering apprenticeships and your competitor isn’t,” says Christine, “jobseekers are more likely to choose you.”
Offering apprenticeships not only supports internal development and succession planning, but also serves as a compelling benefit to attract talent—especially in a market where jobs outnumber available candidates.
Looking Ahead
There are calls from employers for greater flexibility in the apprenticeship system, particularly regarding funding for wages, travel, and accommodation. Christine also expressed a desire for broader adoption of Level 2 apprenticeships, noting that entering the workforce in the first place remains a greater hurdle than career progression.
Despite their potential, apprenticeships in the UK lag behind other countries in terms of uptake. This may be due to lingering misconceptions and a lack of awareness about their value—especially among adult learners who could benefit from learning while earning.
As Sunak highlighted in Parliament, only 18% of UK adults aged 25-64 hold vocational qualifications—significantly below the OECD average.
More details on the government’s apprenticeship review are expected in the Autumn Budget, with updated data set to be released in June.
