The Construction Apprenticeship Levy

The construction industry has long been known for its apprenticeship programs, which have trained countless workers in various trades, including carpentry, electrical work, plumbing, and more.

However, recent years have seen a decline in the number of apprentices entering the industry, raising concerns about the future of the workforce.

In this blog post, we’ll look at some of the reasons for the decline in construction apprenticeships and what the future holds.

Apprenticeship vs academia

One reason for the decline in construction apprenticeships is the stigma which still surrounds vocational education and apprenticeships in some parts of society. Many people view these programs as second-class compared to traditional academic paths; despite the many benefits they offer.

This view is particularly pronounced in some parents, who may push their children towards university degrees instead of apprenticeships.

Lack of funding

Another reason for the decline in apprenticeships is the lack of funding available to companies to support them.

In the UK the apprenticeship levy was introduced in 2017, requiring companies with a payroll of over £3 million to pay a 0.5% tax to fund apprenticeships.

While this has generated significant revenue, many smaller companies who don't meet the payroll threshold struggle to find the funds to support apprenticeships.

Mind the skills gap

In addition to these challenges, the construction industry also faces a significant skills gap. As experienced workers retire, there are simply not enough new apprentices entering the industry to replace them.

This has led to a shortage of skilled workers in many areas of the industry, which in turn has driven up wages and made it harder for companies to compete.

Promising signs for the future?

Despite these challenges, there are some promising signs for the future of construction apprenticeships.

Governments around the world are starting to recognise the importance of these programmes and are investing more in them.

Here in the UK, the government recently announced plans to invest £2.5 billion in apprenticeships and vocational education over the next five years.

There are also many initiatives aimed at promoting apprenticeships and changing perceptions of vocational education. These range from marketing campaigns to events and job fairs which showcase the benefits of apprenticeships.

In the construction industry specifically, there are also efforts underway to address the skills gap. For example, some companies are investing in training programs to upskill their existing workers, while others are partnering with schools and colleges to promote careers in construction.