What needs to be done to supercharge apprenticeships? 

National Apprenticeship Week is a moment to take stock of what’s working, what isn’t, and where apprenticeships can have the greatest impact.

Gatsby has recently published three new reports which together offer practical insight into the challenges facing the apprenticeship system – and the policy levers that can help overcome them.

Taken together, these three studies highlight a system under strain not because its core principles are flawed, but because of growing points of friction in how apprenticeships are designed, funded and used. While recent reforms have strengthened quality and employer confidence, particularly through occupational standards and independent end-point assessment, completion rates remain below their previous peak, and participation patterns increasingly reflect system incentives rather than labour market need.

By drawing these strands together, we aim to support more informed conversations this National Apprenticeship Week – and help turn evidence into action.

The new University of Warwick IER analysis shows that apprenticeships in England are significantly more costly for employers than in comparator countries, largely due to higher wage costs and weaker integration between training and productive work. This is a direct consequence of an all-age apprenticeship model in which apprenticeships are used both as an entry route for young people and as a mechanism for adult upskilling. For employers, this creates friction: apprentices are often paid at near-market wages while undertaking substantial non-productive training, making apprenticeships an expensive and sometimes inefficient way to develop skills, particularly for experienced workers. Download the report: Apprenticeship costs in Germany, Austria and England: a matched plant study

At the same time, the NFER research on withdrawals points to further sources of friction within delivery. Apprentices who need additional support – whether because of prior attainment, employment conditions or life circumstances – are more likely to leave early, yet the system offers limited scope for tailored intervention without increasing cost or complexity. This raises the risk that pressures to improve completion rates are addressed by reducing expectations, rather than by improving support. Download the report: Securing success from start to finish: Investigating factors associated with apprenticeship withdrawal

Finally, the end-point assessment research shows that, although EPA is widely valued by employers and provides a credible test of occupational competence, current reforms risk adding further friction if they weaken independence or consistency in the name of flexibility. The challenge is not to dismantle EPA, but to ensure that it remains proportionate, trusted and clearly aligned with the purpose of an apprenticeship. Download the report: End-Point Assessment Reform.

Daniel Sandford Smith, Director of Programmes at Gatsby said:

“We look to emulate other countries’ apprenticeship systems but seem unwilling to learn lessons from them. Apprenticeships should be protected as high-quality routes into skilled occupations for young people, where the costs and benefits to employers, apprentices and the wider economy are well aligned. For adults, alternative training models that maintain occupational focus but reduce wage-related and administrative friction are likely to be more effective.

Without this clarity of purpose, the apprenticeship system will continue to absorb competing objectives, increasing cost and complexity while falling short of its potential impact.”