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Apprenticeships

Midlands Apprenticeship Rates Decline: Addressing the Gap Between Supply and Demand

The West Midlands has experienced a significant decline in apprenticeship uptake, according to the latest data outlined in the West Midlands State of the Region 2026 report. The figures reveal that thousands fewer apprenticeship opportunities were taken up in the 2024/25 period compared to a decade earlier.

This issue was recently examined by members of the West Midlands Combined Authority (WMCA) Local Scrutiny Committee. A notable concern raised is the trend of larger contractors recruiting individuals immediately after they complete apprenticeships, which leaves smaller firms struggling to access qualified apprentices.

The report highlights that over the last ten years, apprenticeship starts across the WMCA area have decreased substantially, reflecting national trends. In 2024/25, there were 7,840 fewer apprenticeship starts-a 31% drop-from 25,190 in 2013/14 to 17,350. Although there has been a marginal increase from 17,190 starts in 2023/24, overall numbers have remained relatively stable since 2019/20.

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Several factors contribute to this decline. The introduction of the Apprenticeship Levy in 2017 increased overall apprenticeship funding but shifted the focus away from recruiting new apprentices. Instead, the levy has been used predominantly for training existing staff. This change inadvertently led to reduced participation from small and medium-sized enterprises (SMEs), increased administrative burdens, and upfront costs for employers, culminating in fewer apprenticeship starts and limited opportunities for young people aged 19 and under.

Sandwell councillor Keith Allcock, drawing on his engineering experience, pointed out that larger contractors often secure apprentices immediately after qualification, which impacts smaller engineering companies. He questioned how the mismatch between apprenticeship supply and demand is being addressed.

In response, WMCA chief executive Ed Cox acknowledged the issue, highlighting the valuable insight provided. He expressed an interest in further collaboration between councillors and the WMCA skills team to enhance apprenticeship brokerage services. Cox emphasised that aligning government-supported schemes with the needs of smaller firms is crucial to ensuring the apprenticeship system better serves all employers in the region.