16 January 2015

Apprenticeships contribute 34 billion to the UK economy in 2014

According to recent research from the Centre for Economics and Business Research (CEBR), apprenticeships contributed £34 billion to the UK economy in 2014. This figure includes gains to the economy from higher wages, business profits and taxes of £31billion per year, an estimated reduction in unemployment benefit payments of £370million per year, and benefits to organisations while training apprentices of £1.9billion per year (in 2014 prices).

The ratio of benefits to costs of apprenticeships is £21 for the national economy for each £1 of public money spent.

The research also shows that the number of people starting an apprenticeship each year has grown from around 100,000 in 1950, to more than 440,000 people in 2013/14. The government also delivered its promise of 2million apprenticeships in its lifetime, with the 2millionth apprentice celebrated on 9^th December 2014.

If this upward trend in recruitment continues, the national economy stands to gain £50billion by 2025, and £101billion by 2050.

Minister of State for Skills, Nick Boles said: "Apprenticeships are at the heart of the Government's drive to equip people with the skills that employers need to grow and compete"

Employers are being urged to recognise the positive impact apprenticeships have made over the past hundred years and to consider how an apprenticeship could benefit their business in 2014 and beyond.

David Meller, Chair of the Apprenticeship Ambassador Network (AAN) said: "this report clearly shows how worthwhile apprenticeships are for employers. By investing some of their time in the short-term in training an apprentice, businesses will profit for many years to come from a more highly-skilled and productive workforce. I would urge employers to consider how an apprenticeship could benefit their business".

You can read the full press release and the results of the CEBR report on the Apprenticeships website: http://www.cebr.com/reports/economic-impact-of-apprenticeships/