Types of employers who utilise apprenticeships

While apprenticeships remain popular with school leavers and career changers, many programmes are now being used to upskill existing employees. Employers are increasingly investing in higher and degree apprenticeships, allowing individuals to gain advanced qualifications while working. 

Recent employer research highlights that apprenticeships are no longer viewed simply as an alternative to university. Instead, many organisations see them as a strategic workforce planning tool that can help address skills gaps, improve retention and support long term business growth. 

Apprenticeship statistics in England

Apprenticeship participation remains strong across England, demonstrating the continued value employers place on work-based learning and skills development. The latest government figures for the 2025/26 academic year (August 2025 to April 2026) show that apprenticeship activity has increased across starts, participation and achievements.

There were 308,770 apprenticeship starts, representing an 8.7% increase compared with the same period in the previous year. At the same time, 735,500 learners participated in an apprenticeship, up 4.6% year on year, while 146,210 apprentices successfully completed their programme, an increase of 14.0%.

The data also highlights growing employer demand for advanced skills. Higher apprenticeship starts increased by 13.6% to 126,660, with particularly strong growth at Levels 4 and 5. This reflects a broader shift towards using apprenticeships for professional, technical and leadership development, rather than solely for entry-level positions.

Employer investment in apprenticeships also remains significant. More than two-thirds of apprenticeship starts (67.3%) were supported through Apprenticeship Service Account levy funds, demonstrating how many organisations are using apprenticeships as part of their long-term workforce development strategy.

Why employers use apprenticeships

Employers use apprenticeships in two main ways. Some hire apprentices to bring new talent into their business, while others use apprenticeship programmes to upskill and develop existing employees.

Common reasons employers invest in apprenticeships include:

• Addressing skills gaps by developing the capabilities needed within their organisation.
• Building a talent pipeline through recruiting and training future employees.
• Upskilling existing staff to keep pace with changes in technology, regulations and business requirements.
• Improving employee retention by providing clear pathways for learning and career development.
• Developing future leaders through management and leadership apprenticeship programmes.
• Making use of apprenticeship levy funding to maximise investment in workforce development.
• Supporting diversity and social mobility by creating alternative routes into skilled careers.

Which types of employers use apprenticeships?

Small businesses and SMEs

Small and medium sized enterprises are among the most active users of apprenticeships across the UK.

For SMEs, apprenticeships provide a cost effective way to recruit and develop talent. Smaller businesses often use apprenticeship programmes to build capability in areas such as administration, marketing, IT support and customer service.

Apprenticeships can also help family owned businesses and growing companies prepare for future workforce needs by creating a pipeline of skilled employees.

Medium sized employers

As organisations expand, apprenticeships can help support growth without relying entirely on experienced external hires.

Many medium sized businesses use apprenticeships to strengthen specialist teams, develop future managers and fill difficult to recruit positions. This approach can provide greater stability while supporting long term business objectives.

Large organisations and levy paying employers

Large employers often operate apprenticeship programmes at scale.

Organisations in sectors such as finance, retail, telecommunications, engineering and technology use apprenticeships to recruit new talent and develop existing employees. Many have expanded beyond traditional entry level schemes to include higher and degree apprenticeships in areas such as cyber security, software development, project management and leadership.

Some employers now position apprenticeships alongside graduate programmes, providing multiple pathways into professional careers.

Public sector employers

The public sector is one of the largest users of apprenticeships in the UK.

NHS trusts, local authorities, schools, universities and government departments all utilise apprenticeships to address workforce needs. Programmes are commonly used to support careers in healthcare, social care, business administration, project management and public services.

How different industries are utilising apprenticeships

Apprenticeships are used across a wide range of industries, helping employers develop the skills needed to meet current and future workforce demands. While some sectors use apprenticeships to attract new talent, others focus on upskilling existing employees and creating clear progression routes into higher skilled roles.

In professional services and office-based environments, apprenticeships are commonly used to develop skills in business administration, accountancy, project management and leadership. This is reflected in government data, which shows that Business, Administration and Law recorded the highest number of apprenticeship starts in England, with 95,980 starts in 2025/26. Employers in these sectors are increasingly using apprenticeships as an alternative route into professional careers, alongside traditional graduate recruitment programmes.

The digital and technology sector has also seen growing demand for apprenticeships. Employers are using programmes to build expertise in areas such as software development, cyber security, data analytics and digital marketing. As organisations continue to invest in digital transformation, apprenticeships provide a practical way to develop specialist skills while supporting long-term workforce planning.

Manufacturing, engineering, retail and hospitality employers also utilise apprenticeships to strengthen technical capabilities, improve customer service and develop future leaders. Across all sectors, apprenticeships are increasingly being viewed as a strategic investment in skills rather than simply a route into employment for school leavers.