A new report from the British Chambers of Commerce is calling on government to go further in reforming the apprenticeship system to ensure it is fit for the 21st century and able to meet the real needs of businesses.
Published during National Apprenticeships Week, the report highlights significant concerns with the current framework, describing it as too rigid, lacking clarity, neglecting higher level skills, and failing to respond effectively to employer demand.
Apprenticeships remain a vital route into skilled employment, offering opportunities for young people to earn while they learn and enabling existing employees to upskill while remaining productive in their roles. However, the British Chambers’ analysis shows that take up and completion rates have been falling, with some businesses disengaging from the system altogether.
Skills Shortages Persist Despite Reform
Research conducted by the BCC Insights Unit shows that 67 per cent of firms are currently facing skills shortages, yet more than half of businesses surveyed do not believe existing training options are effectively addressing those gaps.
The report also raises concerns about recent government proposals. Over a third of businesses say that lowering the National Living Wage threshold from age 21 to 18 would make them less likely to recruit younger people. In addition, 61 per cent of firms said recent apprenticeship reforms would not change their hiring plans, while a further 19 per cent stated the changes would make them less likely to take on an apprentice.
These findings underline the need for reforms that are shaped by employer experience and grounded in labour market evidence.
Key Recommendations from British Chambers of Commerce
The report sets out a number of recommendations aimed at strengthening the apprenticeship system and improving employer confidence, including:
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Reforming the Growth and Skills Levy to allow funding for short, modular training
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Recognising spending on skills as a long term investment and delaying the introduction of a lower National Living Wage threshold
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Using intelligence gathered through Local Skills Improvement Plans to future proof the system
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Ringfencing funds from the Apprenticeship Levy and the Immigration Skills Charge specifically for training investment
Kate Shoesmith, Director of Policy and Insights at the British Chambers of Commerce, said that while apprenticeships are transformational, the system has clear weaknesses and proposed reforms do not yet go far enough to reverse declining engagement or provide the flexibility businesses need.
The Local Picture in Cambridgeshire
For Cambridgeshire businesses, these issues are particularly relevant. Employers across the region continue to report skills shortages.
Local Skills Improvement Plans are already playing a crucial role in capturing employer insight and helping shape training provision across further and higher education. Ensuring that this intelligence directly informs national apprenticeship policy will be critical to improving outcomes for both learners and employers.
Nick Frank, LSIP Manger at the Cambridgeshire Chamber of Commerce, said:
“Apprenticeships play a key role in helping people build skills and support business growth. The British Chambers of Commerce report shows there are opportunities to strengthen the system, and through Local Skills Improvement Plans we work with employers to help ensure training meets local needs.”
Supporting a Stronger Skills System
Cambridgeshire Chambers of Commerce supports the British Chambers of Commerce in calling for ambitious, business led reform of the apprenticeship system. A more flexible, responsive approach will help employers invest in skills with confidence, support productivity and ensure that local economies have the talent they need to grow.
The Chamber will continue to work with businesses, education providers and policymakers to champion a skills system that works for Cambridgeshire now and into the future.
Read the full BCC article here: Apprenticeship System Reform Must Go Further – British Chambers of Commerce