Former Health Secretary Alan Milburn has issued a compelling call for businesses to fundamentally re-evaluate their recruitment strategies, urging them to prioritise new apprentices, particularly young people, over exclusively upskilling existing employees. This significant intervention coincides with the publication of the Sunday Times’ prestigious list of the UK’s top apprenticeship employers, highlighting both exemplary commitment and a concerning national trend of declining opportunities for young entrants into the workforce. Milburn, who previously authored a seminal review into young people and work, articulated his concerns as a critical juncture for the UK’s future workforce and social mobility.
Milburn’s advocacy underscores a stark reality: apprenticeship starts among under-19s have nearly halved over the last decade, plummeting from 130,000 to a mere 75,000. Even more alarming is the collapse of entry-level starts at Level 2, traditionally the most accessible gateway for school-leavers, which have seen a catastrophic 68% reduction. This dramatic downturn paints a worrying picture for youth employment pathways and skills development across the nation.
A Decades-Long Erosion of Work-Based Learning
The decline in youth apprenticeships is not an isolated phenomenon but rather a continuation of a troubling trend that has seen the UK lag significantly behind its international peers. Milburn highlighted that since 2013, the United Kingdom has experienced the largest proportional decline in young people enrolled in work-based learning programmes among all OECD countries. This statistic places the UK at a disadvantage in fostering a skilled, adaptable workforce, especially when compared to nations like Germany, Switzerland, and Austria, where vocational education and apprenticeships are deeply embedded in the educational and economic fabric, often seen as pathways of equal prestige and opportunity to university degrees. The long-term implications of this erosion extend beyond individual career prospects, touching upon national productivity, innovation, and economic resilience.
Writing for the Sunday Times as it unveiled its authoritative list of the top 100 apprenticeship employers, Milburn passionately argued for the transformative power of well-executed apprenticeship programmes. "Apprenticeships, done well, don’t just fill a vacancy. They open a door that for many young people would otherwise stay shut," he stated. His comments serve as a powerful endorsement of the employers featured on the list, recognizing their crucial role in providing vital opportunities. He added, "The organisations in these pages know that. In aerospace and ambulances, banking and broadcasting, they are proving that apprenticeships work — powerfully."
Milburn further elaborated on the significant economic benefits of these programmes, citing that "A Level 3 apprenticeship delivers over 50% more lifetime economic value than the classroom equivalent." This economic dividend, he contended, extends not only to the individual apprentice through enhanced earning potential but also to the broader economy through increased productivity and tax contributions. He concluded this point by saying, "Every successful career starts somewhere, and these employers have chosen to be that somewhere for thousands of young people every year."
Barriers to Entry and the Shifting Apprenticeship Landscape
Despite the clear benefits, Milburn identified significant barriers that compound the problem of declining youth participation. A key issue, he noted, is the increasing complexity of application processes for apprenticeships, which he described as far more intricate than those for university admissions. This complexity disproportionately affects young applicants who may lack extensive work experience or guidance, creating an unnecessary hurdle for potential talent.
Milburn acknowledged the immediate pressures faced by employers, particularly smaller firms operating in sectors historically crucial for entry-level employment. "I understand the pressures employers face," he conceded. "The cost of hiring young people has risen. For smaller firms in hospitality, retail and care — the sectors that have historically been the easiest way in — the economics are genuinely difficult." These sectors, often characterised by tight margins and high staff turnover, have found it increasingly challenging to absorb the costs associated with training and mentoring new, young apprentices.
The introduction of the Apprenticeship Levy in April 2017 further complicated the landscape. Designed to fund new apprenticeships, the levy requires all employers in the UK with an annual pay bill of over £3 million to invest 0.5% of their pay bill into an apprenticeship fund. While intended to stimulate apprenticeship growth, critics argue that it inadvertently incentivised larger companies to "re-badge" existing training programmes as apprenticeships, often for older, more senior staff, and to focus on higher-level qualifications (Level 4 and above). This shift, combined with funding rule changes, contributed significantly to the decline in Level 2 apprenticeships and opportunities for younger, less experienced individuals. The administrative burden and perceived inflexibility of the levy system have also been cited by some employers as deterrents to engaging with the programme, especially for entry-level roles.
The Long-Term Economic Imperative: An Ageing Population and Declining Migration
Beyond immediate financial considerations, Milburn urged businesses to adopt a longer-term strategic perspective. He highlighted two critical demographic shifts that necessitate a renewed focus on youth investment: falling migration and an ageing population. "But there is a longer-term calculation to make. Migration is falling. The population is ageing. The employers who invest in young people now are not just doing the right thing. They are building the workforce their businesses will depend on in a decade."
The UK’s demographic trends show a clear trajectory towards an older workforce, with fewer young people entering the labour market. The Office for National Statistics (ONS) projects a significant increase in the proportion of the population aged 65 and over, while the working-age population growth is slowing. Coupled with recent shifts in migration patterns, this creates a pressing need for homegrown talent development. Businesses that fail to invest in attracting and nurturing young people today risk facing severe labour shortages and skills gaps in the near future, undermining their long-term viability and the nation’s economic competitiveness. Industry bodies like the Confederation of British Industry (CBI) and the Federation of Small Businesses (FSB) have consistently warned about the exacerbating skills crisis across various sectors, from digital technology and engineering to health and social care.
Milburn’s Solutions: A Clear Path Forward
Milburn’s proposed solutions are direct and actionable, calling for a fundamental change in employer behaviour and a simplification of processes. He outlined four key recommendations:
- Commit to recruiting apprentices at entry level, not just upskilling existing staff: This directly addresses the issue of the levy’s unintended consequences and advocates for a return to apprenticeships as a primary pathway for new talent.
- Work with schools and colleges to make opportunities visible and accessible: Bridging the gap between education and employment is crucial. Many young people, their parents, and educators may not be fully aware of the breadth and value of apprenticeship opportunities, particularly beyond traditional trades.
- Simplify your hiring processes: Milburn stressed that "the multistage application that works for a graduate role is a barrier for a 17-year-old with no track record." Streamlined, accessible application processes are vital to encourage and retain young applicants.
- Offer the mentoring, structure and patience that turns potential into performance: Apprenticeships are not just about training; they are about holistic development. Robust mentoring, clear progression paths, and a supportive environment are essential to ensure young apprentices thrive and integrate successfully into the workforce.
The UK’s Top Apprenticeship Employers: A Beacon of Best Practice
The Sunday Times list of top apprenticeship employers serves as a powerful counter-narrative to the national decline, showcasing organisations that are actively investing in the next generation. The list is notably dominated by the military, underscoring its long-standing commitment to vocational training and skill development. The British Army leads the pack with an impressive 13,500 apprentices, constituting 17.2% of its entire workforce. This commitment is mirrored by the Royal Navy and Royal Air Force, which employ nearly 7,000 and 4,000 apprentices respectively, providing critical technical and leadership training.
In the private sector, BAE Systems stands out as the UK’s largest apprenticeship employer. With a record 5,100 apprentices engaged in over 100 schemes, ranging from entry-level to degree-level qualifications, BAE Systems exemplifies a comprehensive approach to talent development. Their programmes span critical fields such as nuclear engineering, systems and software engineering, welding, pipefitting, and aircraft maintenance, directly addressing national skills needs in advanced manufacturing and defence. This investment highlights a strategic understanding of future workforce requirements in a highly specialised industry.
Beyond the military and heavy industry, other sectors are also demonstrating significant commitment. Busy Bees Nurseries, a prominent childcare provider, secured fifth position on the list, boasting more than 1,100 apprentices who represent 15% of its UK workforce. This indicates a vital investment in the care sector, which faces ongoing recruitment challenges and a growing demand for qualified professionals. Deloitte, a leading professional services firm, is the highest-ranking in its sector, with over 2,200 apprentices. This reflects a growing trend among professional services to diversify recruitment pathways beyond traditional university graduate schemes, recognising the value of practical, work-based learning for developing essential skills.
The top 10 further includes diverse organisations such as hospitality giant Mitchells and Butlers, Kids Planet Day Nurseries, the London Ambulance Service, and e-commerce behemoth Amazon. This broad representation across various industries demonstrates that successful apprenticeship models are adaptable and beneficial across the economic spectrum, from frontline public services to rapidly evolving technology and service sectors. These employers not only fill immediate vacancies but also cultivate a pipeline of skilled professionals, contributing to their own resilience and the wider economy.
The Broader Implications and Call to Action
The dichotomy between the exemplary practices of the top employers and the national decline in youth apprenticeships presents a critical challenge for policymakers, businesses, and educational institutions. The ongoing skills crisis, exacerbated by demographic shifts and the lingering effects of global economic instability, underscores the urgent need for a cohesive national strategy to revitalise entry-level work-based learning.
Government initiatives, such as reforms to the Apprenticeship Levy, could be explored to better incentivise employers to take on younger apprentices at lower qualification levels, potentially through targeted funding or reduced administrative burdens. Furthermore, enhanced collaboration between the Department for Education, the Department for Work and Pensions, and industry bodies is crucial to ensure that apprenticeship programmes are responsive to actual labour market needs and effectively communicated to young people and their families.
The call from Alan Milburn is not merely a recommendation; it is a strategic imperative. By choosing to invest in young people now, businesses are not only fulfilling a social responsibility but are also making a prudent economic decision that will safeguard their future prosperity and contribute to a more skilled, dynamic, and equitable national workforce. The success stories highlighted by the Sunday Times list offer a blueprint for what is possible, demonstrating that with commitment, strategic planning, and a willingness to simplify processes, businesses can indeed be the "somewhere" where thousands of young people begin their successful careers. The challenge now is to expand these examples of best practice to a national scale, reversing the worrying trend and unlocking the full potential of the UK’s youth.
