Young people call for abolition of the apprenticeship rate

20 July 2023

• New research from Co-op in partnership with VotesforSchools reveals over half (59%) of young people aged 7-16 years old believe apprentices should be paid the national living wage as cost of living drives interest in apprenticeships

• Co-op calls on other businesses to pay apprentices the national living wage to help expand the uptake of apprenticeships and the positives they can offer

New research from the Co-op and presented at a roundtable organised by The Purpose Coalition has revealed over half (59%)* of young people believe all apprentices should be paid the national living wage.

In a drive to understand whether the payment of the apprenticeship rate could be discouraging young people from taking up this type of training, Co-op partnered with VotesforSchools, where 24,000 young people aged 7-16 years took part in the survey. Overwhelmingly over half of those surveyed (59%) said they felt it wasn’t fair that apprentices are paid a lower wage.

Currently, the Apprenticeship Rate of the National Living Wage for 2023 has been set at a level below the National Living Wage (£5.28 v £10.42). Potentially putting young people off from pursuing an apprenticeship.

It seems apprenticeships are more important now than ever. As additional research** shows 1 in 3 (35%) of young people aged 12-18 are more likely to choose an apprenticeship for their career path, compared to three years ago – and for nearly two-thirds (64%) of these young people, the increase in the cost of living is something that makes them more likely to make this choice.

Over a quarter (27%) of the young people surveyed believe apprenticeships are more important now than before the cost-of-living crisis. Over half (51%) of young people said having opportunities to develop skills was an important consideration when thinking about their future career path, while two-fifths (43%) said being able to get paid while also training was an important consideration. 

The research was presented at a roundtable organised by the Co-op and the Purpose Coalition in Parliament by four students from Kettering Buccleuch Academy, hosted by Robbie Moore MP, PPS at the Department for Education. Students also highlighted the role schools have to place in making students aware of apprenticeships as an alternative to university and the impact transport costs can have on the affordability of apprenticeships.

Caitlin Tweed, a Co-op Legal Services Apprentice paid the Real Living Wage said: “Working at Co-op has changed my life. I have always dreamed of becoming a solicitor, however my options of achieving my dream, without getting into debt were very slim. With the cost of living being so high and the apprenticeship rate being minimal, I was so worried about how I was going to sustain a basic standard of living.

“The role has enabled me to have that happy work life balance that everyone wishes for.  My knowledge is growing everyday whilst earning a fair wage. I’m excited to see what the future brings working at Co-op legal services.”

Claire Costello, Chief of People and Inclusion Officer said: “Apprenticeships are a key means to create the opportunities that young people say they want and to promote social mobility. They also ensure everyone has an equal chance to fulfil their potential, no matter who they are or where they are from.

“As the research shows, young people view the current apprenticeship rate as unfair, in this economic climate people may put off taking up apprenticeships, particularly those from disadvantaged groups who would most benefit from the opportunities apprenticeships offer.

“Fairness of pay is an area where the co-operative movement has history having been part of the campaign for a national minimum wage. The Co-op pays all its apprentices the Real Living Wage (as set with the living wage foundation) because it’s the right thing to do, but many other employers don’t. That’s why we’re in unity with young people and calling on all three political parties to make it a manifesto commitment to end the apprenticeship rate.”

Robbie Moore MP, Member of Parliament for Keighley and Ilkley said: “It was great to join the Co-op, business leaders, policy experts and young people from across the country to discuss the opportunities that apprenticeships provide, and how we can make them better for both apprentices and employers - that is vital to levelling up"

Sam Sawford, one of the students who attended the roundtable, and is waiting for his A level results, said: “Apprenticeships are a fantastic opportunity for young people to continue their education, learning skills whilst pursuing paid employment. They allow a different avenue beyond the so called, traditional educational route.

“However, the current minimum rate of pay blocks the aforementioned opportunity for many. It is not sufficient and makes apprenticeships unattractive, particularly for those who would rely upon their apprentice income to support themselves and sometimes others.

“Therefore, to expand the uptake of apprenticeships and the positives they can offer, the minimum rate of pay must be increased.”

To learn more about apprenticeships at the Co-op, please visit: jobs.coop.co.uk/apprentice-hub.

Notes to Editor  

*Research conducted by VotesforSchools

Full results available: https://www.votesforschools.com/results/jobs-economy-education/is-it-fair-for-apprentices-to-be-paid-a-lower-living-wage/

** Research conducted by YouGov Plc

Total sample size was 513 teenagers aged 12-18 in the UK. Fieldwork was undertaken between 25th – 31st January 2023. The survey was carried out online.

About Co-op:

Co-op is one of the world’s largest consumer co-operatives with interests across food, funerals, insurance and legal services. Owned by millions of UK consumers, the Co-op operates over 2,500 food stores, over 800 funeral homes and provides products to over 5,000 other stores, including those run by independent co-operative societies and through its wholesale business, Nisa Retail Limited.

Employing almost 57,000 people, the Co-op has an annual turnover of over £11.5 billion and is a recognised leader for its social goals and community-led programmes. The Co-op exists to meet members’ needs and stand up for the things they believe in.