Key facts
- Labour's flagship apprenticeship scheme has seen only 160 starts in eight months.
- The government aims for 30,000 foundation apprenticeship starts by the end of this parliament.
- About 1 million 16- to 24-year-olds in the UK are not in employment, education, or training (Neet).
- Apprenticeship starts among under-25s are 40% below their level a decade ago.
- A Fabian Society report found only 24% of employers have good knowledge of T-levels.
- The report recommended a £311m-a-year regional apprenticeship fund.
Labour's flagship apprenticeship scheme has seen a significantly low uptake, with only 160 young people starting in the first eight months of its operation. This falls far short of the government's ambition to achieve 30,000 "foundation apprenticeship" starts by the end of the current parliamentary term. The scheme is part of Labour's broader strategy to address the nearly one million young people aged 16 to 24 who are not in employment, education, or training (Neet).
Official figures indicate that while overall apprenticeship starts in England have increased by 9% year-on-year, with over 308,000 enrollments in the current academic year, the foundation apprenticeship program for young adults has struggled to gain traction. The Fabian Society, in a report analyzing these figures, noted that apprenticeship starts among under-25s have declined by 40% compared to a decade ago, a steeper drop than in other advanced economies. The thinktank attributes this to a fragmented system that needs fixing to meet government targets.
Experts have warned of a potential "lost generation" due to rising youth unemployment, which is growing faster in the UK than in comparable countries. Alan Milburn, a former Labour cabinet minister, is leading a review into youth worklessness, with his recommendations expected to influence education, welfare, and employment policy. The Fabian Society's report also found that employers have limited awareness of newer technical qualifications like T-levels and V-levels, contrasting with their high recognition of A-levels and GCSEs. The report suggests a £311 million annual regional apprenticeship fund and changes to how employers can use growth and skills levy funds to cover wage costs for apprentices.