In an open letter to the Secretary of State for Work and Pensions Rt Hon Pat McFadden signed by the group, alongside 28 other business leaders and sector stakeholders, failure to do so risks losing entry-level pathways that build skills, confidence and careers for the next generation.
The letter, signed by partners of Apprenticeships Work, a campaign spearheaded by education charity Edge Foundation, urges more government support for SMEs to recruit apprentices highlighting how it could unlock opportunities and growth across the country.
Urgent action needed to address decline
“SMEs often struggle to engage with the apprenticeship system,” said Bethany Windsor, Head of Skills Policy at Logistics UK. “Their businesses make up 99.7% of the logistics sector and 99.8% of businesses of the economy. Yet nationally, across all sectors, SMEs employ only 37% of apprentices, a fall of 17 percentage points since the Apprenticeship Levy was introduced in 2017.
“The decline needs to be addressed urgently. With the right support, SMEs can be instrumental in driving inclusive economic growth and opportunity.”
The letter to the Secretary of State sets out the need for decisive action from government to address the shortfall in SME uptake, including:
- Establishing a coordinated framework to allow them to navigate apprenticeship funding and regulation
- Committing to a measurable increase in SME apprenticeship starts
- Giving smaller businesses a greater voice in shaping apprenticeship design.
“The removal of training and assessment costs for SMEs taking on apprentices under 25 demonstrates the critical role government policy plays in enabling small businesses to grow,” continued Windsor. “To maximise impact, the government should now broaden this backing, helping more SMEs recruit apprentices and giving young people meaningful routes into work.”
The letter can be read here: Letter to Secretary of State for Work and Pensions Rt Hon Pat McFadden
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