Student employers: ‘reform apprenticeship levy to boost youth employment’

The next government should focus on the apprenticeship levy and employability programmes for people from disadvantaged backgrounds to help increase youth employment, an organisation representing graduate employers has said.

According to the Institute of Student Employers (ISE), current legal structures and regulations are hindering employers’ ability to hire graduates and apprentices, despite the need to fill skills gaps across the economy.

The number of 16 to 24-year-olds who are economically inactive has surged since the Covid-19 pandemic, with around 12% of people in this age group estimated to be in this situation at the end of 2023.

ISE has unveiled a five-step manifesto that it hopes the next UK government will adopt to assist organisations to invest in early careers programmes.

Stephen Isherwood, joint CEO of ISE, said: “Education structures, vocational and academic education routes, labour market regulations, social inclusion policies and migration rules all impact how employers hire and develop people.

“With enlightened government policies many of the barriers that hinder a fully functioning early career market would fall away. Pathways through education and into work should develop the skills and abilities that employers seek.

“ISE members alone spend millions each year hiring and developing students who go on to add many, many times that value to the UK economy. A vibrant graduate and apprentice employment market is vital to the UK’s social and economic wellbeing.”

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The five policies the ISE wants the next government to adopt include:

1. Reforming the apprenticeship levy to enable employers to recruit more apprentices and deliver more skills training, particularly to school and college leavers
2. Improving funding for employability support for people from disadvantaged backgrounds that delivers access to work experience for all students in secondary, further and higher education
3. Investing in resources to ensure that careers work in all schools and colleges is structured and led by a qualified professionals
4. Delivering legislation to end unpaid internships and work experience that lasts longer than two weeks
5. Developing a stable international visa regime that supports hiring needs across the UK.

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