Apprenticeship system reform must go further

10 Feb 2026

The government must reform the apprenticeship system to make it fit for the 21st Century, according to a new report published by the British Chambers of Commerce (BCC). 

The report says that the current framework is too rigid, lacks clarity, neglects higher-level skills and is failing to meet the needs of business. 

The report found that while 67% of firms were facing skills shortages, more than half of them do not feel that current training options are plugging this gap. 

It also identifies that over a third of businesses say lowering the threshold for the National Living Wage from 21 to 18 will make them less likely to recruit younger people. 

Kate Shoesmith, Director of Policy and Insights at the BCC, said: 'There can be no doubt how truly transformational this training system is. Becoming an apprentice provides a direct route for young people into work, to earn and learn, while setting out a clear pathway for their future development. 

'For established employees they offer the opportunity to upskill, while remaining productive in their current role, a key reason that they remain attractive to employers. 

'But it has been clear for a while that the system has many flaws. Take up and completion rates have been falling, and some businesses have turned their backs on it. 

'The government has recognised it needs to stop this rot and shake things up. But its proposed reforms do not go far enough and lack clarity.'