Free cookie consent management tool by TermsFeed Investing in potential: How the Budget’s apprenticeship boost drives social mobility and expands talent pipelines | Kernel Global

Investing in potential: How the Budget’s apprenticeship boost drives social mobility and expands talent pipelines

Learn how the latest Budget's investment in apprenticeships and fair wages supports social mobility, empowering diverse talent and strengthening future workforce potential.

We are delighted to see a commitment to investing in apprenticeships in the Budget, with an 18% bump to the minimum hourly wage and additional funding dedicated to, as well as additional funding being dedicated for shorter and foundation apprenticeships. 

Apprenticeships can be a powerful tool for social mobility, equipping students with high-demand skills and enabling long-term career growth without inheriting the debt from a university degree.  

The Social Mobility Commission research (*1) has highlighted that disadvantaged workers who complete an apprenticeship enjoy a bigger boost to their earnings than their more privileged peers (16% versus 10%). 

However, concerns have previously been raised about the minimum wage for apprenticeships, as this "low" wage is likely to discourage individuals from considering the route. This would have particularly impacted disadvantaged students who could have most benefited from apprenticeships, as the wage alone would not be enough to financially support them. 

A 2022 report from the Sutton Trust (*2) stated that in January 2020, almost 17% of students across the UK were eligible for Free School Meals (FSM). However, amongst apprentices under the age of 30 was much lower, with only 5% of students starting apprenticeships at Level 6 being eligible for FSM.  

The benefits of social mobility for the wider economy are well documented, with the Sutton Trust asserting that enhancing social mobility could lead to a total of £170 billion being added to the UK economy annually. If apprenticeships can be set up to attract and support students from more disadvantaged backgrounds, then this route to employment would be a catalyst for diversifying talent pipelines and creating essential change in widening talent pools.  

Labour’s pledge will be the largest increase on record and will open the doors to more students from under-represented backgrounds being able to meaningfully consider apprenticeships.  

While this is a welcome first step and a brilliant win for apprentices, we would have loved to have seen the Low Pay Commission's recommendation of raising the apprenticeship minimum wage to the national minimum wage for those over 18. At the new rate of £7.55, the apprenticeship minimum wage remains only two-thirds of the national minimum wage, leaving room for improvement.  

There is a lot of change to still be made, and we hope to see a dedicated increased investment into apprenticeships to be able to break open the talent pool even further. 

At Kernel, we remain committed to advancing social mobility, recognising that fair wages are essential to unlocking opportunities for young people. We are dedicated to supporting apprentices by bridging the gap between education and meaningful careers, ensuring that all young people have the resources and support they need to thrive in any industry. Through our Classroom to Boardroom Foundation, we are focused on providing mentorship, skill-building opportunities, and financial support to empower the next generation, creating a more inclusive workforce for the future.

If your organisation is considering introducing apprenticeships, or you’d just like to learn more, then please reach out to ctbfoundation@kernel-global.com and we’d love to pick up the conversation. 

Resources: 

(*1) https://www.gov.uk/government/publications/apprenticeships-and-social-mobility-fulfilling-potential

(*2) https://www.suttontrust.com/our-research/the-recent-evolution-of-apprenticeships/

Let’s talk. Exceptional things start with a conversation.

Looking for more information on the Group? Does Kernel sound like the right place for you or your business to be a part of? Contact us and one of our team members will be in touch.