At Rhotic, we are a huge believer in the power of Degree Apprenticeships, but the recent media coverage about the growth of NEETs and the growing number of employers abandoning apprenticeships is not lost on us.
This year, we have sadly been forced to cut the number in our annual apprentice intake, but we remain committed to offering opportunities, no matter how difficult this is becoming.
Rhotic is a multi-award-winning apprentice employer and, most recently, we were privileged to receive royal recognition for this as a recipient of the King’s Award (see here).
As CEO, I have watched the recent media scrutiny around degree apprenticeships (see a recent FT story here) with a mixture of frustration but also familiarity.
The press is right to examine why these programmes are not firing on all cylinders in England.
However, the diagnosis from policymakers often misses the reality on the ground. For small and medium-sized employers that deliver these opportunities, the system is increasingly constrained by red tape, misaligned incentives and financial pressure.
For degree apprenticeships to succeed, five fundamental issues need to be addressed.
- Stop binning broad, future-fit standards
There is a misguided push to scrap broad degree apprentice standards, such as business management, in favour of hyper-specific Level 6 standards in areas such as project management or AI. This is a mistake.
Broad standards allow employers to develop tailored programmes with Knowledge, Skills and Behaviours that are relevant to their specific business. They are inherently fit for the future.
Forcing employers into uniquely prescriptive niches undermines the flexibility that makes apprenticeships work.
- Settle the fight between “academic” and “chartered”
Employees seek qualifications that enhance their career prospects, while employers seek graduates who can apply their learning effectively in the workplace.
Both objectives are valid, but the system should continually be assessed to ensure it remains learner-focused rather than process-focused.
Chartered and professional bodies have an important role in safeguarding standards and promoting professionalism.
However, there are questions around whether some aspects of professional accreditation represent the most efficient route to achieving those standards, particularly when ongoing membership costs and additional qualification requirements are taken into account.
The issue is particularly evident in apprenticeship delivery. Academic achievement can often be demonstrated earlier than the overall apprenticeship completion date, yet End Point Assessments and extensive portfolio requirements can extend the qualification process considerably.
While reforms are underway, reducing unnecessary bureaucracy and focusing on outcomes rather than documentation may prove essential if apprenticeships are to remain a compelling route for learners and employers alike.
- Address the unintended consequences of the minimum wage
Everyone wants people to earn more. I would love nothing more. But, small employers simply cannot afford to pay £25,000 a year to an apprentice who is not yet fully commercially viable.
When the mandatory minimum wage kicks in after year one, businesses face a stark choice: stop offering these opportunities altogether or cut apprentice hours back just to make them affordable. The policy is achieving the opposite of its intended effect.
- Direct funding where the real work happens
Currently, funding flows entirely to universities and chartered bodies. This ignores the reality of how successful apprenticeships are delivered.
Employers that understand the importance of application invest heavily from their own pockets to develop bespoke training materials and hire staff for dedicated bridge or tuition roles, or they divert management attention from other places to ensure their apprentices are trained.
These substantial costs are being absorbed with no financial support or funding recognition. Employers already pay all of the wages, so is it really that unrealistic to divert some of the sponsorship money to them?
- Remember exploration as well as exploitation
Both policymakers and employer groups seem to have forgotten this crucial balance.
Employers must ensure apprentices become commercially viable as soon as possible, but they also have a duty to ensure apprentices learn skills for the future so they can evolve.
This means teaching advanced concepts that apprentices will not be able to apply straight away (see the earlier point about the usefulness of the management standard).
It can take multiple layers of teaching before an apprentice puts everything together, but employers need the funding and resources to deliver this long-term horizon scanning.
Without it, future-critical skills are deprioritised in favour of immediate day-to-day survival, and when that happens, everyone loses.
Degree apprenticeships have the potential to be the crown jewel of England’s skills strategy.
Until policymakers trust employers, cut out bureaucratic middlemen and fund the true cost of delivery, the system may continue to stall.
Despite all of this, I remain convinced that apprenticeships are an essential ingredient of developing early careers and enabling social mobility at the same time. For these reasons, Rhotic will continue to drive its programme forward.
- Joe McGrath is founder and CEO of Rhotic Media.