What impact has 20 years of policy change had on apprenticeship starts?
- 1st Apr 2026
- Daniel Sandford Smith
Understanding the impact of successive government policies on how many people start apprenticeships is essential for shaping effective future reforms. This report by Richard Holliday examines twenty years of policy interventions, and the extent to which it is policy and funding decisions, rather than labour market demand that drives change.
Drawing on long-term apprenticeship data and insights from interviews with employers, providers and sector experts, the findings reveal a clear pattern: changes in government policy have driven significant shifts in apprenticeship starts over time.
Reforms such as the introduction and withdrawal of Train to Gain, the introduction (and later removal) of Advanced Learner Loans, and the apprenticeship levy have all been linked to sharp rises or falls in participation. However, these effects have not been the same across the system. Shorter, lower-cost apprenticeships have been most sensitive to policy changes, while longer, more demanding programmes – often tied to specific occupations – have remained more stable.
This raises a fundamental issue for policymakers. Apprenticeships are employment-based programmes, yet the evidence suggests their growth has not closely tracked labour market trends. Instead, policy design has often shaped behaviour across employers and providers, sometimes producing unintended consequences, including rapid expansion in certain types of provision without corresponding improvements in skills or productivity.
The report sets out a series of recommendations to address these challenges and strengthen the role of apprenticeships in supporting economic growth. These include:
- improving the quality and consistency of data
- better aligning funding with labour market needs, and
- creating clearer distinctions between apprenticeships for new entrants and training for existing staff.
It also highlights the importance of developing routes which could deliver the required training more effectively and efficiently than an apprenticeship, which should be preserved for entry into occupations.
“Over the past two decades, the apprenticeship system has undergone significant change, with reforms reshaping both how it operates and the culture around it. The introduction of standards and stronger rules has improved quality and addressed many of the weaknesses of the past. But policy decisions continue to shape behaviour across the system, and without fully understanding their impact, we risk repeating mistakes or creating new unintended consequences.
“Getting this right is essential if apprenticeships are to truly support the needs of the economy and drive productivity.”
Daniel Sandford Smith, Director of Programmes
By drawing together evidence on what has – and hasn’t – worked, this report provides a foundation for more stable, evidence-informed policymaking that delivers better outcomes for learners, employers and the economy.
