Apprenticeship numbers are down 34% since 2015-16, before the apprenticeship levy and other reforms were introduced, and down 40% for under 19s. Only one in two apprentices completes their apprenticeship, although total training hours per apprenticeship are up. Falls in apprenticeships in deprived areas mean apprentices are now just as likely to be from the least deprived areas, having been half as likely before.

Too often large employers paying the apprenticeship levy are choosing apprenticeships to draw down their levy to fund higher-level training for older, existing employees, rather than because it is the best option for them. Meanwhile overall employer investment in training down 26% since 2005.

The apprenticeship system isn’t working as it should. We need a system that raises overall employer investment in training, improves opportunities for young people and training particularly up to level 3, and better meets the need of employers and our economy.

This report makes the case for the next government to broaden the current levy into a “flex and match” Skills Levy that would give employers greater flexibility to spend their levy on training in priority areas, but only if they also invest in apprenticeships for young people. Growth in the levy over time would allow the apprenticeship budget to be protected. The Government should also increase support for functional skills, explore expanding the levy to more employers, and introduce a Skills Tax Credit.

20 January 2026

Labour market dashboard

Every month, Learning and Work Institute produces detailed and timely analysis of the latest labour market statistics from ONS. Explore our interactive charts.

Read more

24 December 2025

Falling short: Understanding further falls in employer training

This briefing looks at how employer investment in training continues to fall – now down 36% per employee since 2005 – and argues that we must turn this around to improve economic growth.

Read more

22 December 2025

From confusion to clarity: rethinking England’s 670 occupational standards

L&W’s Stephen Evans and Pearson’s Donna Ford-Clarke reflect on findings from our recent research on England’s occupational standards – of which there are now more than double the number in countries like Germany and Switzerland.

Read more

16 December 2025

Responding to Alan Milburn’s investigation into young people not earning or learning

Sam Avanzo Windett, Deputy Director at Learning and Work Institute, responds to the launch of Alan Milburn’s investigation into young people not earning or learning.

Read more

8 December 2025

Responding to the Government’s announcement on the Youth Guarantee

Dr Emily Andrews, Learning and Work Institute’s Director of Policy and Research, responds to the Government’s announcement on expanding opportunities through the Youth Guarantee on Sunday 7 December.

Read more

27 November 2025

Responding to the full year apprenticeships data release

Learning and Work Institute’s Deputy Head of Research Dr Corin Egglestone responds to the full year apprenticeships data released on 27 November 2025.

Read more

20 November 2025

Responding to the latest NEET data, November 2025

Learning and Work Institute chief executive Stephen Evans responds to the NEET data released on 20 November 2025.

Read more

18 November 2025

Responding to higher technical skills needs

Supported by Gatsby Charitable Foundation, this report explores employer and employee decision making about training and the development of higher technical skills.

Read more

7 November 2025

No train no gain

This research, supported by Multiverse, finds that access to training is a boon for people’s pay and careers. The training dividend is greatest for those on the lower rungs of the occupational ladder, helping them go further, faster.

Read more