TUC - Apprenticeship reforms “desperately needed” after failed Tory era

• New TUC analysis shows apprenticeship start and achievement rates fell to record lows under the Conservatives
• Achievement rates fell by 44% for under 19s and 31% for 19-24 year olds from 2017/18 to 2023/24

TUC says apprenticeship reforms are “desperately needed” – adding that the government has started to ”turn the page” on the failed Tory era with its youth guarantee initiative

The TUC has today (Thursday) said that apprenticeship reforms are ”desperately needed” as it publishes new analysis revealing how the Tories failed young people over access to apprenticeships.

Start and achievement/completion rates for apprenticeships fell drastically for young people during successive Conservative governments. 

New TUC analysis of Department for Education data between 2017-’18 and 2023-’24 shows that: 

• Start rates fell by 26% for under 19s, and by 15% for 19–24-year-olds.
• Achievement rates fell by 44% for under 19s, and by 31% for 19-24-year-olds. 

Failed opportunities

The TUC says this is part of a wider trend of failed opportunities for young people that characterised 14 years of Tory rule. Rising numbers[NS1] [PR2]  of NEET young people today starkly show the human and economic cost of years of Tory underinvestment. 

Separate TUC analysis of destination data for 16–18-year-olds who left education in 2022-23 also shows that even for those who managed to start a post-education route, outcomes have fallen to unacceptable lows. Analysis found that a year later: 

• Of those who had entered work, education or training, 14.8% did not complete or continue it – up from 12.9% in 2017-18.
• For SEN young people the drop-out rate was 25.9%.
• For young people on free school meals the rate was even higher - 26.8%

The TUC says the Apprenticeship Levy, intended to boost numbers, failed to deliver, leading to an overall decline in apprenticeship starts and achievements. 

Earlier this year the TUC’s An Ambitious Plan for Young People report revealed over half (54 per cent) of levy-paying employers have admitted to rebranding existing in-house training as apprenticeships.

The UK apprenticeship system continues to face significant challenges in uptake, quality, and accessibility—particularly for small and medium-sized enterprises (SMEs).

Previous surveys mentioned in the report indicate that 44 per cent of leavers cite insufficient training time and 43 per cent cite poor training quality as reasons for leaving early. 

Among Level 2 apprentices who dropped out, nearly 40 per cent mentioned financial problems as contributing factors. 

The recruitment and retention crisis within Further Education also jeopardises apprenticeship delivery.

Separate polling conducted last month found half (52 per cent) of young people do not feel there is enough support to access good-quality apprenticeships that allow young people to learn and earn at the same time. This rises to 59 per cent for those from a working-class background, 62 per cent for disabled young people, and 65 per cent for those who are NEET.

Reforms

Earlier this year, the government’s Growth and Skills Levy replaced the existing Apprenticeship Levy and includes new foundation apprenticeships.

These new apprenticeships will give young people a route into careers in critical sectors, enabling them to earn a wage whilst developing vital skills. 

The TUC says these reforms coupled with the government’s commitment to increase spending on FE by £1.2 billion per year by 2028/29 are a welcome first step.

To ensure the successful delivery of apprenticeship reforms, the TUC says the government should use the upcoming Budget to widen the scope of the Growth and Skills Levy, which currently applies to just 2% of employers. This would incentivise more employers to invest in training and recruit new apprentices, benefiting both the existing workforce and helping to tackle youth unemployment. 

And to build on the steps taken to widen access and improve apprenticeship completion rates, the TUC says the government should: [SE3] [SM4] 

• Ensure a strong voice for workers: The Board of Skills England should work with unions, employers and providers to ensure apprenticeship design and implementation meets the needs of all stakeholders.
• Simplify system access: The apprenticeship system should be streamlined and access to high quality advice for schools, workers, and businesses improved. This will be vital to widen access to and participation from workers from marginalised backgrounds. More flexible, modular learning options will also reduce barriers to participation.

Establish fair pay for apprentices: To recruit and retain apprentices, government should increase the apprenticeship minimum wage, considering how to align it to the national minimum wage over time.Utilise union capacity[NS5] : Unions can increase participation in apprenticeships and make a significant difference by negotiating for better training standards, ensuring apprentices receive sufficient training time, and working to improve the organisation and quality of apprenticeship programmes, which will reduce dropout rates and enhance the overall apprenticeship experience

• .Strengthen the FE workforce: Address the recruitment and retention crisis in FE to safeguard apprenticeship delivery, starting with fair pay for FE workers.

With almost one million young people aged 16-24 not in work, education or training, the TUC says apprenticeship reforms can build on the ambition of the government’s Youth Guarantee initiative and play a key role in supporting young people out of from long term unemployment and economic inactivity and into secure work.

TUC General Secretary Paul Nowak said: “Our young people were badly let down by the last Tory government which failed to invest in their futures.

“We now have almost one million young people stuck out of work, education and training – this is bad for the country and the economy.

“With the youth guarantee scheme, Growth and Skills levy, stronger employment rights and an industrial strategy the government has started to turn this around.

“But further reforms to apprenticeships are desperately needed. We know that real experience of decent, paid work is the best way to turn the tide on rising rates of worklessness – and that over time this investment will more than pay for itself.

“Young people across the country need access to high-quality training and decent, well-paid work – boosting their prospects and the wider economy. Alongside a strong jobs guarantee, improving our apprenticeships is a good place to start.”