Where Next: What influences the choices of would-be apprentices?

The report is based on UCAS survey data about the experience of about 5,000 young people. They include those currently interested in an apprenticeship opportunity, those previously interested, those who have applied for an apprenticeship, former applicants who did not pursue an apprenticeship, and current apprentices. The responses were broken down using the Index of Multiple Deprivation (IMD) to look at socioeconomic trends. Point 6 below relates to an OfS announcement on funding towards the cost of degree apprenticeships.

At-a-glance:

• As of April 2023, there were 126,000 young people (under 19) participating in apprenticeships, at all levels, in England, making up around 17 per cent of all participants (p5)
• Sutton Trust-backed research by the LSE in 2022 showed that the number of young people doing apprenticeships had plummeted by 30 per cent over the last six years (p4)
• However, higher Level Apprenticeships in England have continued to see growing demand. Nearly one in three apprenticeships starts at higher level, compared to 1 in 25 in 2014/15. Starts in Degree-Level Apprenticeships (Level 6 and 7) have grown to 43,200 (all ages),  representing 12.4 per cent of starts in 2021/22 (p16)
• 40 per cent of UCAS undergraduate applicants are now interested in an apprenticeship role – about 430,000 potential apprentices (p5)
• The Apprenticeship Levy, implemented in 2017 has doubled the funding available for apprenticeships, to £2.5 billion each year. Some 99.6 per cent of this was spent in 2021-22. This means the system is under significant pressure without enough apprenticeship opportunities. Apprenticeship provision needs to expand to accommodate growing demand (p9)
• The OfS will distribute £1,439 million in non-capital grants in 2023/24 to develop degree apprenticeships in strategically important areas, including healthcare, science and engineering (OfS)
• Around half (46 per cent) of student respondents considered apprenticeships an option while studying for GCSEs or National 5s, with those from lower socioeconomic backgrounds 6 percentage points more likely to do so (p7)
• Three in five (61 per cent) of former UCAS applicants did not pursue an apprenticeship because they could not find one in their preferred location. One in three (35 per cent) students previously interested in apprenticeships said they were prevented from doing so due to a lack of roles in their desired career (p7)
• Only 50 per cent of apprentices said their experience of applying was positive, compared with 90 per cent of placed university and college applicants. One in three apprentices from a lower socioeconomic background received no support with their application (p7)
• A Sutton Trust study last year found twice as many degree apprentices are from the wealthiest areas compared to the poorest. The report suggests a “light touch Access and Participation Plan-like model” for levy-paying employers – outlining how they will recruit students from a range of disadvantaged backgrounds (p6)
• A quarter of former apprenticeship applicants said they did not pursue the apprenticeship because they could not afford to do so. The report recommends aligning the apprentice minimum wage to the national minimum or living wage, providing dedicated support for the relocation or travel of apprentices, and the development of maintenance loans for apprentices from disadvantaged backgrounds (p11)
• From this autumn, UCAS will expand its service so that young people can see more personalised options, including apprenticeships within the UCAS Hub, alongside undergraduate choices. Later in 2024, students will then be able to apply for apprenticeships (at all levels) through UCAS alongside an undergraduate degree application (p12)

Implications for governance:

Apprenticeships as an alternative to a traditional university experience are being heavily promoted by ministers and other high-profile figures. During National Apprenticeship Week in February this year, the Westminster government announced its plans to enable young people to search for apprenticeships alongside traditional degrees through UCAS. This would be part of a move to develop a “seamless one-stop shop” where a young person can explore all options and learn about the skills and knowledge they need to develop to succeed in their chosen career, whether through an apprenticeship, T Level, a degree, a Skills Bootcamp, or a higher technical qualification.

With the new duty on schools to give pupils a fuller picture of the pathways available to them at 16 and 18, more young people than ever are also aware of apprenticeships as a choice and have information about how to pursue them.

As the UCAS/Sutton Trust report makes clear, however, demand vastly outstrips supply. Some 40 per cent of UCAS undergraduate applicants are now interested in an apprenticeship role – about 430,000 potential apprentices -  with numbers expected to grow to half a million as part of the predicted Journey to a Million demographic increase in 18-year-olds. Yet in 2021/22, just 5,000 under 19-year-olds started apprenticeships. Sir Peter Lampl, founder and chairman of the Sutton Trust, described supply levels as “derisory”. 

From a university perspective, the growing attention on the route brings pros and cons. If more school leavers are persuaded by apprenticeships rather than degrees, it has the potential to impact higher education recruitment. However, higher level and degree apprenticeships represent an opportunity, given the rising demand for them and the ability from 2024 for students to apply for apprenticeships via UCAS. Ultimately though, their supply depends on partnerships with employers.

As outlined in a recent Advance HE Governors’ View, institutions across higher education have developed and are developing programmes with big companies and public service partners. There are now almost 160 apprenticeships offered at degree level. The report makes clear, however, that to increase apprenticeship numbers to anywhere near demand, more organisations, and SMEs in particular, will need to be brought on board. For universities, developing numerous small partnerships is a much more labour and resource-intensive activity.

The “earn while you learn” model comes with challenges in terms of governance structures, regulation, quality assurance and resource implications. Degree apprenticeships cannot simply be slotted into the existing portfolio of degrees, even when institutions have experience in offering a wide range of vocational and applied courses.

In recognition of the additional costs involved in offering them, the OfS announced last month a funding boost for the 2023/24 academic year to develop these programmes in strategically important areas, including healthcare, science and engineering courses.

£1,439 million in non-capital grants will be distributed, an increase of £56 million from the previous year. This includes £50 million for high-cost clinical and STEM subjects, £8 million to support the growth of Level 4 and 5 provision, including courses leading to higher technical qualifications (HTQs) and £8 million for projects that will build the sector’s capacity to provide degree apprenticeships. An OfS webinar on 20 July will explain the regulator’s initial funding allocation plans.

The UCAS/Sutton Trust report exposes the geographical and socio-economic imbalance in the apprenticeship landscape. Sutton Trust earlier research shows that degree apprenticeships are being colonised by the more affluent, with degree apprenticeships having even fewer young people eligible for free school meals than university degrees.

From a university perspective, good labour market information and data is important in identifying local employment gaps and opportunities that can be explored, alongside employers. In most models, equitable access to degree apprenticeships is down to employers, as they generally have responsibility for recruitment. It may be that widening participation considerations are or could be part of partnership discussions and arrangements.

There are some very reassuring findings for the sector in the Sutton Trust/UCAS report. For instance, more than three-quarters of survey respondents viewed university degrees as ‘prestigious’ and 90 per cent reported a positive application experience. With the upcoming UCAS apprenticeship service, these positives could soon be extended to other pathways. In what could be a sea change, governors will want to ensure that their universities are seen as an integral part of the apprenticeship landscape, not set outside of it.