Speaking during National Apprenticeship Week, Head of Skills Policy Bethany Windsor called for apprenticeships and training to be more closely aligned with labour market needs and highlighted the financial benefits of apprenticeships: in many cases, higher level apprentices can earn almost £5,000 more than an average graduate five years after completing their courses*.
“There is a pool of untapped talent of almost one million 16-to-24-year-olds who are not in education, employment or training and, at the same time, there are some 213,000 job vacancies that are attributed to skills shortages*,” said Windsor.
A missed opportunity
“It is a massive, missed opportunity,” Windsor continues. “And indicative of an education system that has historically prioritised academic achievement over technical pathways, rather than ensuring both are equally valued in preparing young people for the highly skilled careers that drive economic prosperity.
“Apprenticeships offer employees hands-on experience, sector-specific skills and professional training – all while earning a salary. And the financial rewards continue: five years after qualifying, higher level apprentices earn £37,300, on average, compared to £32,100 for the average university graduate after the same period. In many cases, young people are encouraged to pursue degrees that may not match their talents and interests or align with current economic demand.
“Currently, 37% of graduates are over-qualified for their jobs and 41% work outside of their field of study*. While university education has clear and lasting value, there must also be a sharper focus on training the workforce for the jobs the country needs to thrive and drive growth.
A two-pronged approach to the skills shortage
“The UK needs both world-class universities and world-class technical training if it is to compete globally,” Windsor suggests.
In response to Tuesday’s announcements about apprenticeship reform from the Department for Work and Pensions, Windsor commented:
“Helping young people move into work quickly benefits both candidates and employers. But for employers, the key is clarity on how the reformed Growth and Skills Levy can be used, so apprenticeships and flexible training genuinely meet business needs and create strong career pathways for young people.
“Logistics UK supports the government’s plans to replace the Apprenticeship Levy with a Growth and Skills Levy, as this will provide employers with greater flexibility and allow up to 50% of funds to be invested in high-quality, non-apprenticeship training that meets immediate workforce needs.
“Skills England must now move quickly to approve a broader range of sector-relevant courses eligible for levy funding, ensuring the skills system responds directly to the labour shortages across the economy. The reformed levy should also back national careers awareness initiatives such as Generation Logistics, which are critical to attracting new talent into essential sectors.”
Logistics UK is committed to nurturing the next generation in the sector and, as a specialist, government-approved apprenticeship provider, it offers industry-focused apprenticeship programmes, developed by logistics professionals, that meet the business needs of the logistics sector.
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