As concerns grow over the financial sustainability of higher education, with nearly three-quarters of higher education providers facing potential losses by 2025-26, the traditional university route is being questioned. Graduate outcomes are deteriorating, with many facing 10 to 20 years to recoup the cost of their degrees.
Meanwhile, the student loan system, which costs taxpayers around £10 billion annually, is adding to the strain. In contrast, apprenticeship programs, particularly higher and degree apprenticeships, are increasingly seen as a crucial solution to address critical skills shortages and improve employability outcomes.
The 2023/24 academic year also saw a steady rise in overall apprenticeship participation, with 339,580 apprenticeship starts—a 0.7% increase from the previous year. Of these, advanced apprenticeships accounted for 43.1%, and higher apprenticeships for 36.0%. Additionally, Level 6 and 7 apprenticeships saw a 7.1% rise, underlining the demand for higher-level skills. Despite some declines in learner participation, apprenticeship achievements increased by 9.8%, signalling the growing success of these programs.
On the other hand, the UK is the only major economy that has seen its employment rate fall over the last five years, reversing the previous long-run trend of declining rates of economic inactivity. This has been driven predominantly by a rise in the number of people who are economically inactive due to long-term sickness. Apprenticeship can serve as the solution to this inactivity as well.
These trend signals an important shift towards apprenticeships as a more sustainable and rewarding career path, providing students and those rejoining the workforce with the skills and qualifications employers need, without the burden of long-term debt associated with university education.
Government turns to apprenticeships as NEET figures soar
Official estimates suggest that the number of 16-24 year-olds not in employment, education, or training (NEET) across the UK reached 872,000 during the period from April to June 2024 and the government has turned to apprenticeship as a part of the solution.
The government’s Get Britain Working white paper appropriately addresses the challenge of economic inactivity, especially among young people. With NEET levels approaching one million and youth confidence rapidly declining, the proposed Youth Guarantee — which offers a job, training, or apprenticeship within six months — represents a vital intervention.
Vivek Rawal, Chief Executive Officer, ABMA Education Ltd feels that apprenticeships are perfectly positioned to address key challenges. “They bridge the gap between education and employment by equipping young people with the practical skills employers need today, while simultaneously tackling issues like youth unemployment and skills shortages. Apprenticeships cultivate work-ready professionals from day one, ensuring young people can contribute meaningfully to the economy”, he said.
“The future of education must be inclusive and versatile. Apprenticeships provide a pathway for young people to thrive, businesses to grow, and the UK economy to remain competitive on the global stage”, he added.
According to Vivek, apprenticeships are no longer an alternative lesser path—they are a primary route to success, offering opportunities that can surpass traditional university education in appeal and impact. He said, “As industries evolve, so do the skills required to succeed within them. Apprenticeships allow young people to gain hands-on experience, earn while they learn, and develop industry-specific expertise that employers value highly.”
“For many, this model is more relevant and financially sustainable than pursuing a university degree especially in light of the increasing costs and student debt burdens of university degrees.”
The South Asian perception of apprenticeship
Historically, many South Asian cultures have placed a high value on formal education, particularly in subjects like medicine, engineering, law, and business. This emphasis on academic achievement can sometimes lead to apprenticeships being perceived as a secondary or less prestigious route compared to traditional higher education, especially for first-generation immigrants or families who have invested heavily in ensuring their children pursue university degrees.
Vivek acknowledges the cultural biases and challenges that deter some families—particularly within Asian communities—from embracing apprenticeships as a viable option. “For generations, university education has been perceived as the ultimate marker of success and stability in many Asian households, partly due to historical and economic contexts that emphasised traditional professional roles such as medicine, law, or engineering. Apprenticeships, unfortunately, are sometimes seen as lacking prestige or security.”
However, he feels that it is vital to challenge the outdated perception that apprenticeships are a “lesser” option compared to university education. “This misconception is rooted in a traditional view of success that no longer reflects the diverse and dynamic opportunities available in the modern workforce. Apprenticeships lead to careers in sectors as varied as technology, healthcare, engineering, and the creative industries—often with earning potential and career progression equal to or greater than that of university graduates.”
Vikek also offers some practical solutions stating, “To break down these barriers, we must focus on education and advocacy. This includes engaging directly with families to share success stories of apprentices who have excelled in fields ranging from technology to finance and demonstrating the long-term career benefits and earning potential that apprenticeships provide.
“Employers and policymakers also have a role to play by ensuring apprenticeships lead to structured career progression and are visibly celebrated in the same way university achievements often are.”
His own organisation works to create vocationally related accredited qualifications and diplomas that address the skills gap and these cultural perceptions. They also equip schools, parents, and young people with the information they need to make informed choices and provide EDI governance and support to regulated businesses.
Apprenticeships need funding as UK skills gap widens
Seventy percent of UK employers acknowledge that they are not investing sufficiently in their employees' personal development. This comes at a time when more than three-fifths of UK professionals report feeling increased pressure to upskill compared to just a year ago.
Skills England recently released a report highlighting the critical role of new skills in driving growth, yet new research from talent solutions expert Robert Walters underscores the growing concern over employer underinvestment in this area. According to the British Chambers of Commerce, more than 60% of businesses across the UK are currently grappling with skills shortages.
Chris Eldridge, CEO of Robert Walters UK & Ireland, commented, “The UK is facing an escalating skills shortage, driven by an aging workforce, tightening budgets, and the rapid evolution of technologies and AI. The solution lies in a collective effort to upskill, train, and develop professionals across all sectors, which requires active collaboration from employers.”
Despite the need for skill training, with cuts to funding for vital higher apprenticeship programs under the Growth and Skills levy, there are concerns that skills shortages may worsen, hindering productivity and long-term economic growth.
Dr Joe Marshall, CEO of NCUB, stated, “These qualifications, delivered collaboratively by universities and businesses, are essential for producing the skilled workforce required in the UK's national growth sectors. They are crucial for employers, as they build a high-quality skills pipeline that drives productivity.
“However, the future of this pathway is at risk due to the government’s proposed reforms to the Apprenticeship Levy. The new Growth and Skills Levy must ensure sufficient funding for apprenticeships while maintaining flexibility for businesses to support higher-level apprenticeships, including at Level 7, where there are national and regional skills shortages.”
Addressing the concerning issue of international student visas, which have decreased by 19% since 2023. Marshall concluded, “This is a critical issue for universities. The uncertainty surrounding the future of funding for higher apprenticeships occurs alongside ongoing financial instability. The decline in international student visas only worsens the situation. Institutions need clarity and decisive action to ensure financial stability and deliver the qualifications and educational pathways essential for national prosperity.”
An employer and employee perspective
Ahmed Shakir's journey into an apprenticeship started as he realised that university wasn’t the right fit for him. He began studying at Bradford College in 2021, when he enrolled on a Carpentry and Joinery course, completing both Level 1 and Level 2 over two years. Eager to further develop his skills, he joined Abrahams & Carlisle in September 2023 to begin his apprenticeship in Bench Joinery.
A Level 2 Joinery Apprentice, Ahmed clinched second place in the Joinery category at the SkillBuild National Final 2024, his apprenticeship played a significant role in his success. “I spent two years at college, and have only been in my apprenticeship for a year. In that time, I feel like my skills have grown significantly more than they did during college”, he said.
Reflecting on the differences between college and an apprenticeship, Ahmed emphasised the practical experience and career opportunities that an apprenticeship provides. He noted that one of the biggest advantages is earning while learning, stating, “You're earning money on the job, and by the end, you also receive a qualification. For me, that's the key difference. In an apprenticeship, you're gaining real workplace experience, whereas being in college doesn't quite offer the same hands-on learning in a real-world setting.”
For those considering a trade, Ahmed firmly advocates for apprenticeships as the best option, given the invaluable combination of earning, learning, and gaining real-world experience.
Jonathan Hemingway, Director at Abrahams & Carlisle and Ahmed Shakir’s employer, views apprenticeships as a vital pathway for addressing the local skills shortage.
He recognises the value of apprenticeships in building a pipeline of skilled workers to meet the needs of the business and maintain quality service for clients. By bringing in apprentices, the company ensures the development of talent for the future while securing its ability to deliver projects effectively.
Jonathan highlights how apprenticeships have positively impacted the company's performance and productivity. He shares that Ahmed, having completed two years of college before starting his apprenticeship, was able to contribute effectively from day one. This prior experience allowed Ahmed to hit the ground running, engaging productively in projects and assisting the company in meeting deadlines and achieving goals.
Jonathan also outlines the mutual benefits of apprenticeships for both employers and employees. He said, “The main advantage for us in offering apprenticeships is that we’re able to build our workforce, especially since we’ve had difficulty receiving applications for joiners through regular advertising. By bringing in apprentices, we can expand our team. We typically take on two or three apprentices each year, and this stream helps grow our numbers.
“For the apprentices, the benefit is clear: once they earn their qualification, they secure a job with us. We aim to train our apprentices with the intention of them staying with the company long-term, building a strong, experienced team for the future.”
Looking ahead, Jonathan believes the focus in hiring is shifting from formal qualifications to skills. While apprentices still need foundational qualifications such as GCSEs in Maths and English, their hands-on experience in the workplace sets them apart.
