Employers should embrace apprenticeships and use the funding available to them to offset the training costs, to encourage more young people to turn to apprenticeships as an alternative to university, according to the Chartered Institute for Securities & Investment (CISI)
To encourage students, parents and teachers to believe in the value and importance of apprenticeships more employers and businesses need to offer them by using the government’s funding to help.
The Review, CISI’s magazine, said: ‘Substantial funding towards apprenticeship training costs will be available, from April 2017, for the 98% of employers with a pay bill under £3m, and for those with training needs that exceed their levy credit. Therefore firms should unlock the available funding and embrace the education revolution.
‘By doing this, not only will they be investing in their workforce and diversifying their talent pool, but they will be bringing a long overdue change to the education system. They will be creating choice and creating chances.’
University no longer guarantees a ‘fast pass to the top’ and comes with fees which are ever increasing, therefore apprenticeships offer an alternative for young people wanting to enter into a career.
According to research, graduates currently leave university owing an average of £44,500.
A report by the Centre for Economics and Business Research has also found that the lifetime earning premium for graduates is just £2,200 more than for apprentices.
Simon Culhane, Chartered FCSI and CISI chief executive said: ‘Already many major employers, including banks and accountancy firms, are rethinking their recruitment process, either by reallocating some positions traditionally earmarked for graduates, or by increasing the scale of their existing apprenticeships scheme.
‘Having a protected apprenticeship framework in place, as overseen by an Institute of Apprenticeships, will present an opportunity for individuals from all backgrounds to access a rewarding, professional career.’
