Apprenticeships can benefit the City – but only if we choose to use them
Higher apprenticeships are transforming financial and professional services by offering debt-free, practical pathways into well-paid jobs – yet their full potential remains underutilised, says Robert Halfon
When I began my career in Parliament 14 years ago, many viewed apprenticeships as a route into traditional crafts such as manufacturing, construction and electricals. Since then, our understanding has evolved considerably. We have started to recognise the transformational benefits apprenticeships offer for employees and businesses across previously overlooked industries.
We are in the midst of an apprenticeship revolution, with 700 different occupations and over 1,000 apprenticeship qualifications available to adults across the workforce. Financial and professional services serve as major powerhouses in recruiting apprentices, with the ability to transform the city while building a genuine ladder of opportunity.
Employers across the city are crying out for the skillset needed to navigate the modern world and economy. For too long, traditional routes into employment, such as university, have provided young people with qualifications to get a foot in the door but not the experience needed to make an immediate impact. Higher apprenticeships in financial services offer a fundamentally different approach: doing a skilled job to get a degree rather than doing a degree to get a job.
Higher apprenticeships allow individuals to earn while they learn, gaining degree-level qualifications without incurring a penny of debt. No loans, no financial burden, just pure opportunity coupled with practical experience that makes apprentices immediately valuable to employers. This directly supports the government’s core missions: driving economic growth whilst creating opportunity for all.
Apprenticeships, training and skills can be a core part of navigating the challenges of the future. The tidal wave of Artificial Intelligence sweeping over financial services is only moving in one direction, and having the ability to ensure your employees are adaptable and take on lifelong training will put businesses in the driving seat.
Many organisations in the city are already leading the way and reaping the benefits of apprenticeships that can be moulded to fit individual business needs. However, challenges remain, such as a fundamental lack of understanding not just of the benefits but also of firms’ ability to access apprenticeship programmes effectively.
A new way of thinking
The Apprenticeship Levy introduced in 2017 represented a significant development in funding apprenticeships. All employers with a pay bill over £3m pay a levy deposited into their Digital Apprenticeship Services account. Starting in 2023, financial and insurance businesses account for around four per cent of all apprenticeships.
While this may seem economy-leading, only 45 per cent of the levy funds available to financial services firms are being utilised. The remaining 55 per cent represents significant untapped potential. At a time when hiring is challenging and skills requirements are evolving, why aren’t we making full use of this funding to build agile apprenticeship programmes that benefit businesses and drive growth across the capital?
Apprentices bring not just skillsets but also a new way of thinking. Apprenticeships have repeatedly proven to be a major driver of social mobility, creating that vital ladder of opportunity reaching every community. Financial and professional services can be seen as out-of-reach industries, with higher apprenticeships providing an effective way to break down structural barriers whilst delivering high-level skills our economy desperately needs.
Regardless of social class or family income, people from all backgrounds can progress into well-paid jobs that may have otherwise seemed inaccessible. Successful organisations benefit from diverse perspectives and backgrounds. This blend of experience and viewpoints is one of the significant benefits of embracing apprenticeships.
Financial and professional services firms have an opportunity to lead here. Higher apprenticeships are not just a “nice to have” but a way for firms to embed talent while simultaneously delivering on the government’s twin missions of economic growth and opportunity for all. They represent the future of skills development: lifelong learning, practical, debt-free, and immediately valuable.
The ladder of opportunity is there – we just need to climb it.
Robert Halfon is former skills minister and senior advisor to BPP Education Group