Chaos to Coordination and Agents of Change demonstrate the need for urgent reform to unlock thousands of opportunities across the UK. This is crucial to achieving the Government’s ambition of creating 10,000 more apprenticeship opportunities each year.
Insights from a survey of 243 small and medium-sized enterprises (SMEs) conducted by the Recruitment and Employment Confederation (REC) informed the reports and underpin Edge’s new campaign, Apprenticeships Work, which seeks to increase apprenticeship opportunities in SMEs for young people.
Key findings
From Chaos to Coordination (Edge Foundation, 2025):
- Young people’s interest in apprenticeships is higher than ever: in 2023, over 40% of UCAS applicants expressed an interest in apprenticeships.
- Yet for every young person who secures an apprenticeship, three apply unsuccessfully, with many discouraged by a fragmented, duplicative and technically flawed application system.
- Current failings hold back schools and colleges from providing quality advice, prevent employers (especially SMEs) from advertising effectively, and ultimately undermine government ambitions for skills and growth.
- The REC survey found a high percentage of employers unaware of the Find an Apprenticeship Service (40%), especially outside of London. And a strong feeling that advertising an apprenticeship vacancy on one central platform used by all employers and potential apprentices will be ‘extremely useful’ (30%) and ‘somewhat useful’ (44%).
- The report calls for a national one-stop shop for apprenticeships, building on the Government’s Find an Apprenticeship platform, with improved usability, integration with careers resources, and wraparound support for young people entering work.
From Agents of Change (Edge Foundation, 2025):
- SMEs are the backbone of the UK economy, but their participation in apprenticeships has been in sustained decline. This has in turn impacted opportunities for young people as SMEs are more likely to hire apprentices under 25.
- Nearly 70% of SMEs said that tailored advice on how apprenticeships could meet their skills needs would encourage them to take on a young apprentice — far outranking cash incentives or training support.
- Apprenticeship brokerage services — intermediaries that connect employers, training providers and apprentices — have been proven to work in local areas, but are inconsistently funded and unevenly available, creating “cold spots” across the country.
- Close to half of the employers surveyed by the REC said that an apprentice who has already taken part in work-readiness skills training or a Foundation Apprenticeship would encourage them to take on a young person (aged 16-24) as an apprentice. Despite the availability of government incentives, a large share of employers remain unaware of these schemes: National Insurance relief (33% unaware); 'Fully funded training for apprentices aged under 22 in SMEs (37% unaware); fully funded training and assessment costs through the levy transfer scheme (43% unaware); a £1,000 incentive payment for hiring apprentices aged 16-18 (44% unaware); and £1,000 incentive payment for apprentices aged 19-24 if they are care experienced or have an Education, Health and Care Plan (47% unaware).
- The report calls for a nationally coordinated, locally delivered brokerage system, backed by sustainable funding, to ensure every SME can access practical support.
A shared opportunity
Together, the reports show a system that is failing both SMEs and young people – but also a huge opportunity if reforms are made. With SMEs eager to engage and young people more interested than ever, a reformed system could unlock a wave of apprenticeships that deliver for individuals, businesses and local economies.
Alice Gardner, CEO, Edge Foundation, said:
“These reports make clear that apprenticeships work – but only if the system works for young people and for the small businesses that want to employ them. Right now, we have a generation eager to learn and contribute, and SMEs ready to grow their teams, yet both are being held back by unnecessary complexity and lack of support. By creating a simple, joined-up system and ensuring every employer can access practical advice, we can unlock thousands of life-changing opportunities.”
Kate Shoesmith, REC Deputy Chief Executive, said:
“Nearly one million young people are not in education, employment or training, making reform of apprenticeships a serious priority to help upskill and get more young people into work. It is essential if the Government is to have any hope of hitting their overall target of 80% of people in employment. They could start by delivering the flexibility within the Growth and Skills Levy funding model promised pre-General Election. This would make apprenticeships and training more accessible for everyone. Employers tell us they want to take on apprentices, but many do not know about the support available or where to start. Simplifying the system would especially help smaller firms.”
