Following announcements regarding the future of higher-level apprenticeships, Julie Deeley, director of operations at EN:Able Futures, a flexi job apprenticeship service in the sector, shares her insights on what these changes mean in reality
Since the Labour government stepped into power a year ago, one of its top priorities has been supporting young people into viable careers. Paired with a renewed focus on narrowing the construction skills gap, the industry has been front and centre for policy and funding updates in recent months.
In late May, the government announced an overhaul of construction apprenticeships in its latest plan to increase employment and education opportunities among young people. By refocusing funding away from Level 7 apprenticeships from January 2026 and introducing Foundation apprenticeships for 16–21-year-olds, it hopes to develop skills where they’re needed most, including in construction.
Alongside this announcement, changes were also made to increase the Immigration Skills Charge, as well as the launch of 13 new Level 2 construction courses for adults in non-devolved areas. It’s fair to say the news leaves a lot to unpack for those in the industry.
These aren’t the first significant construction skills announcements from the party, though. The pledge of a £600m package in the Spring Statement to fund 60,000 new construction workers before 2029 and the development of Skills England to plug skills gaps came at the start of this year.
It’s clear to see an effort is being made to support the sector, but is diverting funding away from the increasingly popular Level 7 apprenticeships the wrong move? Or will it see funding repositioned in more valuable places?
The current climate
To understand the impact these plans will have, it’s important to first understand how the industry is currently utilising construction apprenticeships.
The number of apprentices in construction has been falling overall, with engagement from under-19s and new starters at Level 2 falling the most dramatically. Over 25s have seen the opposite of this, though, as in the last full academic year 2023/2024, the government reported that 48.4% of construction apprenticeships started were by those over 25, compared to just 23.2% being under 19.
This is due to a trend in larger organisations often choosing to invest their apprenticeship levies in higher-level apprenticeships to further the skills and training of existing team members. This is undoubtedly positive, as we’re continuing to invest time and resources in training the next generation of experts. However, we’re also finding that this is correlated with the reduction in new and younger people entering the sector, which needs to remain balanced if we’re to successfully solve the skills gap.
What is the goal?
From Labour’s perspective, one of the biggest current challenges is those not in education, employment or training (NEET). NEETs accounted for 12.5% of all 16–24-year-olds in the UK between January to March 2025 – in reality, that’s 923,000 young people. For the government, this is a huge challenge to tackle, but for our industry, it’s also a huge untapped opportunity.
By refocusing on Level 2 and Foundation apprenticeships, the goal is to reduce NEET statistics, access those furthest from the job market and increase the volume of workers coming into the construction sector.
Bracing for impact
The friction with these plans comes from the fact that many already in the sector want to utilise these paths for existing team members, not new starters, which isn’t the purpose of the proposed changes.
Organisations like the Royal Institute of Chartered Surveyors and the Royal Institute of British Architects utilise construction apprenticeships as a structured pathway for career development. While Level 2 apprenticeships encourage recruitment, Level 7 supports retention. If people in their early 20s can see clear progression paths in the sector that can expedite their careers, they’re more likely to stay.
Similarly, within the built environment, gaining chartered status is often crucial for unlocking promotions, salary increases, and opportunities. Designing, surveying, engineering and management all encourage chartered status, which is increasingly being done as part of higher-level apprenticeship journeys. This means more highly skilled, highly qualified workers at a younger age, which is a priority for the likes of RICS and RIBA who aim to foster these quality standards in the industry.
The argument for the outlined overhaul of apprenticeships is that large organisations in a position to do so should be financially supporting team development as part of their business strategy. Ultimately, better-trained staff lead to improved work performance and more profits for businesses, but this isn’t the government’s immediate priority.
Instead, the levy is designed to reach those not in work or who are new to the sector and who need to be the focus.
However, it isn’t black and white. Those falling through the cracks with these changes will be SMEs, who can’t necessarily afford to support their teams financially through higher level qualifications and may suffer impacted retention as a result.
Where do we go from here?
A priority for firms should be to grow their own talent. This is the best recommendation we can make to organisations of any size, as it is a future-proofed strategy that makes the best use of the government’s available apprenticeship support.
Growing your own talent simply means investing in young people at an early stage and championing them from the very start of their careers. The benefits of this are that you can shape their experience into exactly what you need for the success of your company, something not as easily done with graduates or those joining with previous experience.
The renewed focus on Level 2 and Foundation apprenticeships means businesses are being pushed to invest in potential, not ready-made professionals, benefiting both employers and young people.
Employer concerns
It’s easy to say how this would work in an ideal world, but this isn’t an ideal world and employer concerns are very valid. Most worries likely come back to finances and in the current market, that can’t be overlooked.
The perception is that apprentices won’t be fee-earning and will be an overhead for the two to three years they complete their qualification. This simply isn’t true. While there is an investment of time from the company and a learning period, most apprentices are fee-earning and contributing to the business’s success within a matter of months. The combination of on-the-job learning from experts backed by academic insights means they get up to speed far faster than someone joining through a more traditional entry-level route.
However, the success of this model is dependent on how supportive a business is. You can’t throw anyone in the deep end without structure or encouragement and expect them to thrive, not least an apprentice.
Businesses can also be hesitant to develop their own talent, as they worry about investing all their time and resources in someone who isn’t the right fit and won’t work out in the long run. We often hear from employers that they feel that higher-level apprentices come with less risk as they’re usually a bit older and require less input, so it’s not as much of a loss if they don’t work out.
I’d argue that the right person is surely right, regardless of the age or level they come in at. The challenge is finding the right person before making an appointment, not after, which is where proper recruitment is required.
An external provider, such as a flexi-job apprenticeship service, is a good way to enhance apprentice recruitment. Not only do they have experience in selecting the right fit, but they can also remove the internal politics that are often seen in an industry built on family businesses and relationships. This dynamic isn’t always conducive to effective apprentice selection.
Early preparation
If the government wants businesses to prioritise hiring Level 2 and Foundation apprentices, it must take some responsibility for preparing young people for this path. These apprenticeships will be available to those aged 16-21 years old, meaning they will not be long out of full-time education.
In recent years, there has been a requirement to make young people aware of alternative options to university at a school level, but beyond that, there is little preparation should they choose this path. Interview techniques, time management and communications skills taught as standard would better prepare young people for apprenticeships and, in turn, increase employer interest in apprentices as they’ll be better equipped for the role.
We can’t put all the onus on businesses to make it a viable route; there are earlier interventions that could be making young people workplace-ready, which need to be considered as well.
The reality
The final piece of the puzzle that we can’t solve in the sector alone is business bills. The cost of wages is increasing, and whether you agree or disagree with this, it is having a significant impact on all businesses, especially small to medium-sized enterprises (SMEs).
While National Insurance Contributions aren’t paid on apprentices, the knock-on effect of the April 2025 raises means that it’s less financially viable to recruit full stop, and that’s filtering down to apprenticeship offerings.
The apprentice minimum wage is now £7.55 per hour, increasing to the minimum wage rate for their age after year one, which could be up to £12.21. What we’re finding is that those businesses that could previously afford an apprentice or even multiple apprentices are now taking them on less or not at all due to increased costs.
Focusing on Level 2 and Foundation apprenticeships might help to combat this in part, as they target younger people who may have fewer financial responsibilities and could be more able to take up such opportunities. However, that is a generalisation and a large proportion of young people who are NEET aren’t in those circumstances.
While positive steps are being taken, with increasing support from local authorities and government bodies, to ensure apprentices are paid fairly and closer to a real living wage, this can unintentionally deter some employers from offering opportunities, particularly smaller businesses. This creates a tension between widening access and maintaining demand, which requires careful consideration.
Will it work?
Overall, I feel positively about the overhaul announcement and am pleased to see a renewed focus on NEET young people and utilising foundation and level two apprenticeships to support them into work. This can only be a step in the right direction for the industry, too, as we increase the number of people entering the sector and upskill for the future.
Like with all strategies, there are undoubtedly challenges for both the government and the industry to answer to and compromises needed on both sides.
Apprenticeships really do unlock the workforce of the future, and it’s in the best interests of construction businesses to get behind these schemes if they’re to future-proof against the changing industry needs.
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