Milburn Review must back Apprenticeship Guarantee and flexible zero hours jobs for young people

The CIPD is calling on the Government to introduce an Apprenticeship Guarantee for 16 to 17-year-olds, to start to reverse a long-term decline in vocational training and job opportunities for this age group. 

The call comes from the professional body for HR and people development ahead of the final report from the Milburn Review into youth unemployment and inactivity, expected in the coming weeks. 

At the same time, the CIPD is warning that poorly designed zero-hours contract reforms risk reducing the availability of flexible entry-level jobs relied on by many young people and students, undermining wider efforts to improve youth employment.

The CIPD’s proposals for an Apprenticeship Guarantee would create an additional 20,000 apprenticeship places for 16- to 17-year-olds by 2029/30, bringing numbers for this age group back to the level they were before the Apprenticeship Levy was introduced in 2017. 

The introduction of an Apprenticeship Guarantee also has the backing of 90% of employers, and six in ten say it would encourage them to take on more apprentices above their current provision, according to CIPD research. 

The call comes as official data shows that the Government’s flagship Foundation Apprenticeship scheme had just 160 starts in its first eight months, against a target of 30,000 starts by the end of this parliament. Previous CIPD research highlights the collapse in apprenticeship provision for young people in recent years, with apprenticeship starts among under-19s falling by 41% between 2015/16 and 2022/23.  

By creating an Apprenticeship Guarantee, the Government could take a joined-up approach to addressing the barriers limiting apprenticeship opportunities. It would provide more young people with a direct route from education into training and work, while tackling skills shortages and supporting social mobility. 

The proposed guarantee would be backed by four key measures:  

• a £5,200 apprenticeship wage grant, equivalent to six months’ wages at the current apprentice minimum wage of £8 an hour for 25 hours a week.  
• full funding for apprenticeship training 
• local level support to help employers create and fill apprenticeship vacancies  
• a statutory duty on local authorities to support delivery and work in partnership with local employers to ensure sufficient opportunities are available 

The Apprenticeship Guarantee also aims to address challenges around local apprenticeship delivery. Devolved authorities would be given responsibility and support to identify local skills needs and work in partnership with employers, professional bodies and other key stakeholders to ensure sufficient opportunities are available. 

Zero hours contracts 

The CIPD is also urging the Government to ensure proposed reforms for zero-hours contracts don’t have the effect of reducing the number of job opportunities for young people.  

It is calling on the Government to re-start discussions with key employer-side organisations and the trade unions to discuss the reforms. This would help ensure they are workable in practice and don’t destroy the sorts of flexible jobs that students in particular depend on. 

Ben Willmott, head of public policy at the CIPD, said:  

“The proposed regulations on the use of zero hours contracts could be a huge blow to youth opportunity if we get them wrong. There are about a quarter of a million students working on zero hours contracts which enable them to earn and gain valuable skills and work experience while they study. The Government must ensure its reforms do not reduce access to these important opportunities for young people." 

“It’s time for Government to re-engage with employers and unions to design an approach that works. Young people need more opportunities to access both good-quality apprenticeships and flexible job opportunities. Policy should expand these opportunities, not inadvertently reduce them. 

“An Apprenticeship Guarantee would help widen access to high-quality vocational training, support social mobility and help employers build stronger talent pipelines. With public finances under pressure, such a guarantee provides a practical and cost-effective way to create more opportunities for young people and support employers to invest in future talent. 

“Our proposed wage grant would help offset the upfront employment costs of taking on an apprentice during the early stages of learning and development. Additionally, stronger local support for employers would also make it easier, particularly for small firms, to invest in apprenticeships and develop young people.”