Board Insight

The truth about apprenticeships and why Southwest employers need to act now

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By Laurence Frewin, Principal and CEO, South Devon College

Employers across the Southwest tell us they want to grow and expand their businesses, and they want to hire people with the right attitude, potential and the willingness to learn.

But at the same time, there are more than 200 young people in South Devon alone wanting to do an apprenticeship who cannot find an employer to take them on. This disconnect should concern us all for many reasons.

Across all media, we are never far away from stories about how hard it is for businesses: rising costs, supply chain fluctuations and recruitment challenges, so it’s easy to put the low uptake of apprenticeships down to economic pressures.

But feedback gathered from social media posts involving more than 500 employers indicates something different is going on. It seems many businesses are not dismissing apprenticeships because they do not see the value of them; they are hesitating because they are receiving flawed or misleading information, much of it shared informally online. This is shaping their decisions over more formal, informed advice.

An example of this is a recent claim made by an employer and widely circulated online that alleged it costs £30,000 a year to hire a 16-year-old apprentice. Of course, you won’t be surprised to hear this caused a great deal of concern and confusion and shows how quickly misinformation spreads. If a business owner believes that a 16-year-old apprentice will cost them £30,000, then they are unlikely to take it any further, and a young person misses out on a life-changing job opportunity.

I want businesses to know the truth. Apprenticeships remain one of the most cost-effective ways to build a strong and skilled workforce with employers paying no National Insurance contributions for apprentices under the age of 25, and incentive payments available for those hiring younger apprentices or those with particular support needs. Foundation apprenticeships offer additional financial benefits for employers. All these facts are publicly available but are often overshadowed by social media speculation.

In the recent Autumn budget, there was some good news for small and medium-sized businesses that are taking on an apprentice.

The 5% employer co-investment for apprenticeship training has been scrapped for apprentices under the age of 25 in small and medium-sized enterprises (SMEs).

This means training for under-25 apprentices in SMEs will now be fully government-funded. Previously, SMEs had to contribute 5% toward training costs, with the government covering 95%. That requirement is being removed entirely for this age group.

This is a positive step, and I hope more local employers will consider taking on an apprentice.

However, employers in the LinkedIn posts also reported concerns about paperwork and compliance. Some believed that taking on an apprentice would create an administrative burden for which they simply do not have the time to deal with.

Again, I must point out that this just isn’t the case. Training providers like South Devon College work directly with employers not only with funding arrangements, but also designing the apprenticeship role, managing administrative requirements, and ensuring that the apprentice has the right training plan from day one.

Another misconception is about how long it takes for the apprentice to be a valued part of the business. Many employers assume that apprentices require months of supervision before they contribute meaningfully to the business, but this is generally not the case. By working from day one in the business environment, supported by experienced colleagues, apprentices often become productive quickly. And they learn the employer’s way of working from the outset, and for sectors facing skills shortages, this is not a disadvantage but an opportunity.

We are very fortunate in South Devon to have employers who champion apprenticeships. Bay Photonics, Technical Composite Systems and Evolution Marine all demonstrate how apprenticeships can encourage innovation and support long-term growth. These businesses do not see apprentices as an expense. They see them as an investment in their own sustainability, creating a skilled and future-ready workforce.

However, there are still many employers who could benefit from hiring apprentices being put off by outdated and inaccurate information about the process. This means that there are many young people who want to work being held back, and if we are not careful, these young people will move away, taking their potential with them.

This is why South Devon College has launched the 100 Apprenticeships in 100 Days campaign. It’s a practical call for employers to look again at apprenticeships, as well as an invitation to talk to us directly, so that we can address concerns before they become barriers.

At South Devon College, we are keen to work with local businesses to promote the Southwest as a region where young people can build their lives and careers. We strongly believe that apprenticeships are one of the most effective ways to make that possible, but they rely on employers being willing to take the next step.

If you’re a business owner and you’re unsure about the cost of taking on an apprentice, or you think the process is too complicated, my message to you is this.

Please take the time to talk to our dedicated team at South Devon College, who are on hand to guide and help you every step of the way.

Contact: [email protected] or visit  100 Apprenticeships in 100 Days – South Devon College

If we all want the Southwest to prosper, we need employers to step up and help create a skilled, future-ready workforce.

Laurence Frewin, Principal and CEO, South Devon College.

Images courtesy of South Devon College.