UK faces skills shortage as youth seek alternatives to University 

A well-trained workforce is essential for a strong economy, but the UK is struggling with a skills gap as more young people look for options other than university education.

Last week, thousands of British teenagers found out if their A-level and BTec results would pave the way for university and future careers. At the London South Bank University (LSBU) sixth form college, which attracts a diverse range of students, including those from Nigeria, many are choosing a different path.

Some BTec engineering students are now focusing on apprenticeships instead of traditional degrees. This shift reflects a broader trend in the UK driven by concerns about student debt and the appeal of earning while learning.

What’s the problem with apprenticeships?

Derwyn Kennedy, assistant vice-principal at LSBU, notes that while a decade ago almost every student wanted to go to university, today only a few still aim for that route. Most students are looking towards apprenticeships, but there’s a significant gap between the number of available apprenticeships and the demand for them.

The Financial Times reports that the new Labour government, which is working to boost the economy, faces the challenge of improving opportunities for the roughly half of young Britons who do not go to university. The Labour plan involves increasing investment in skills training, not just in traditional vocational fields but also in critical areas like life sciences and professional services.

Why are apprenticeships limited?

Lord Richard Layard, a Labour peer and professor at the London School of Economics, points out a key issue: “University places are almost limitless because of government-backed student loans, but apprenticeships are limited due to insufficient funding.” Government data reveals that applications for apprenticeships outnumber available spots by three to one, meaning more than a third of young people by age 18 are not in any form of training, a higher rate than in other advanced economies.

Grace Dela Cruz, a healthcare assistant at LSBU, says many are eager to join apprenticeships, but the trust can only support one staff member per ward. Similarly, MSC construction project management student Abioye Oyenuga chose LSBU because of its central London location.

The inadequacy in training is evident when comparing international education statistics. British students do well at age 15 but lag behind their European peers by age 24 due to insufficient training.

What changes are being proposed?

Labour criticizes previous Conservative governments for neglecting skills development, leading to fewer apprenticeships and less adult education. The new strategy includes reorganizing the training system under Skills England, which will replace the Institute for Apprenticeships and Technical Education. This new body will aim to streamline the training system and focus on qualifications needed for government priorities like housing and green energy.

Interim chair of Skills England, Richard Pennycook, will oversee this transition, with detailed plans expected within the next year. Labour also proposes replacing the apprenticeship levy with a “growth and skills levy,” giving employers more flexibility in how they use training funds. This change aims to boost funding for a wider range of training options.

Jane Gratton of the British Chambers of Commerce highlights that their recent survey found a third of companies are interested in investing in apprenticeships, while another third said they didn’t need them. The highest demand is for lighter training options, like coaching and short courses. The final system needs to build business confidence in investing in training.

FAQs

1. What are the main issues with the current apprenticeship system?

• The main problems include a shortage of available apprenticeship positions compared to the number of applicants and insufficient funding to support more opportunities.

1. How is the Labour government planning to address the skills shortage?

• The Labour government plans to increase investment in skills training, expand into critical areas, and reorganize the training system under Skills England to better align with government priorities.

1. What is the proposed “growth and skills levy”?

• The “growth and skills levy” is a proposed change that would replace the existing apprenticeship levy, giving employers more flexibility in how they spend their training funds to support a broader range of training options.