The number of young people attending university continues to rise and, despite its popularity, the government is keen to shift attention back to other career options available, such as apprenticeships. In light of the new Apprenticeship Levy, implemented in April, this option is more firmly on the UK business agenda.

In a bid to boost economic productivity and growth, as well as plug the skills gap in Great Britain, the Apprenticeship Levy was introduced. Businesses with a payroll of more than £3m must pay 0.5% of payroll to the government, with the money being used for government-approved apprenticeships training. Businesses also receive a number of subsidies from the government on top of the amount invested.

The advantages of hiring apprentices are extensive; creating a diverse workforce that is highly and specifically trained according to the business and industry they operate in. Apprentices are also often also extremely loyal to the company who trained and nurtured them.

Since the implementation of the scheme four months ago, we’re looking at how its effects are playing out. How are employers reacting? What do businesses think? Are more young people attracted to the idea of entering the workforce instead of taking on the ever-increasing cost of higher education?

What’s the impact on business?

At a time of substantial austerity, some businesses have protested the additional cost of the levy, which has come alongside other additional costs such as the national living wage increase and the pension auto-enrolment. Some have claimed that increasing the cost of doing business has been bad for enterprise. There have also been calls for improved communication around the scheme so that businesses have all the facts to hand, and can make better informed decisions on how to approach apprenticeships. [i]

While it’s true that businesses are now facing an additional tax, it is one where they will clearly see benefits. The cost of hiring, employing and training apprentices may seem substantial in the beginning, but it is a long-term investment that will train the next generation and ensure British business can continue to thrive. Without the introduction of such schemes, we will face a serious skills gap which will be much worst for business in the long-term.

How can we interest young people?

As for the apprentices themselves, there are some ingrained attitudes that make many view apprenticeships as a poor alternative towards university. However, this is simply not the case. It’s important that schools better advocate the massive benefits of undertaking an apprenticeship. Currently, only about 8% of students are being advised to seek an apprenticeship according to new YouGov survey findings, while 85% are encouraged to go into further or higher education.[ii]

Perhaps one of the best examples I’ve seen that truly advocates the potential of an apprenticeship is the WorldSkills competition, the international “Olympics” of vocational training, and the success of the young Briton, Ashley Terron, who achieved a gold medal and claimed the title of top bricklayer. More events like these, and better publicity around them, are crucial to promote the countless opportunities of an apprenticeship, and to change their narrative so that individuals and businesses alike more clearly see their phenomenal value.

Looking forward

In order for us to ensure that apprenticeship schemes receive the level of interest they deserve, UK business still has a number of lessons to learn. Here at ADP UK we’re still developing our programme, but we know that once it’s up and running, we will celebrate it and seize the opportunities it presents with passion.