Major employers urge government to reform apprenticeships to widen access

Amazon, Co-Op, Severn Trent and Greene King have joined forces with ReGenerate, a charity, calling for urgent reform of apprenticeships in order to open up access to schemes for care leavers, ex-offenders and other marginalised groups.

The new report backed by a wide group of big British businesses has sounded the alarm as research shows that young people leaving the care system are being locked out of jobs and training en masse, despite the UK facing almost 1m job vacancies.

The report by charity ReGenerate, calls for urgent apprenticeship reform to help businesses fill labour vacancies by hiring from marginalised groups, including care leavers, ex-offenders, and neurodiverse individuals, while helping to deliver national priorities.

Currently, the UK has 1.5 million unemployed people and 9.3 million economically inactive individuals, yet many face barriers preventing them from entering the workforce. At the same time, not addressing the problem of unfilled vacancies could cost the UK economy tens of billions per year, while the government spent nearly £270 billion on benefits in 2023-2024.

Backed by over 10 leading businesses, including Co-op, Birmingham Airport and NEC Group, the report argues that targeting apprenticeships towards care leavers and other marginalised groups could bridge this gap, drive economic growth, and create lasting employment opportunities. The report builds on ReGenerate’s Good Jobs Project, and the work of the Midlands Employer Alliance, which it launched in 2024 with Severn Trent.

Research shows that care leavers are four times more likely to be unemployed than their peers and one third will experience homelessness within two years of leaving care. Ex-offenders face similar barriers to work, with only 17% getting a job within a year of leaving prison. However, apprenticeships could provide a critical pathway into sustainable careers if the system is fixed.

Claire-Emily Martin, Senior Associate at ReGenerate, said: “With the UK economy at a tipping point, we – and business leaders nationwide – are urging a step change to apprenticeships, which are so crucial in providing opportunities to some of society’s most sidelined individuals.

“Ex-offenders and people leaving care are particularly badly affected, having often experienced unimaginably rocky starts to their lives. We may be in the throes of a skills, labour force and economic crisis, yet untapped talent is everywhere. We need to take urgent action to remove barriers to entry for the people who need it most.”

ReGenerate’s report highlights a four-step plan to fix apprenticeships, one of which is around increasing flexibility around foundational qualifications in English and Maths. Last week, the government announced a major change to this requirement which has sparked debate and controversy amongst some commentators who have questioned whether the Department for Education is “dumbing down” apprenticeship schemes.

ReGenerate’s recommendations are:

Target foundation apprenticeships toward marginalised groups – launching a three to six-month paid programme combining employability training, sector-specific skills, and mentoring to prepare candidates for full apprenticeships
Increase employer support – raise support payments from £1,000 to £3,000 for businesses hiring marginalised apprentices and expand funding eligibility

Reform training provider funding – allow more flexible payment models before apprenticeship completion, incentivising providers to support diverse candidates

Remove unnecessary Functional Skills barriers – introduce greater flexibility in English and maths requirements, particularly for industries where these skills are not critical to job performance or training.

Nicola Drury, UK Head of Skills & Apprenticeships at Amazon said

“Maximising apprenticeship opportunities for marginalised groups isn’t just about social justice – it’s about unlocking untapped talent to help businesses thrive. Through our existing programs, we’ve already seen how apprenticeships and targeted employability schemes can transform lives and strengthen businesses. However, ReGenerate’s proposals to enhance foundation apprenticeships, increase employer support payments, and reform skills assessment requirements represent exactly the kind of bold thinking we need to create a more inclusive and effective apprenticeship system. By implementing these changes, we can better support both employers and apprentices while building a more dynamic and diverse workforce for the future.”

Carolyn Bundey, Senior Manager Strategic Projects, Toyota GB Plc added:

“Toyota GB Plc are proud to support ReGenerate’s proposals to break down barriers to apprenticeship opportunities for all and help the government to kickstart economic growth. We are committed to taking crucial steps towards fostering a more inclusive and diverse workforce, and to work in partnership with ReGenerate and other organisations to champion access for marginalised groups – creating pathways for untapped talent but also laying the groundwork for sustainable economic growth and innovation within the Automotive industry.”