With crippling tuition fees, high interest rates on student loans and the rising costs of renting accommodation, more young people than ever before are weighing up the best route into a fulfilling career. As students across the country prepare for a new academic year, our latest blog asks whether a university education is still worth the investment or could an apprenticeship be the wiser choice?
Given the cost of going to university and getting a degree, will you secure a better-paid job at the end of your course? The answer is it depends. Generally, most graduates can expect to earn more than non-graduates according to the Higher Education Statistics Agency (HESA) but earnings depend on the subject studied and university attended.
University costs
One of the major costs of going to university is the course itself which for most students in England and Wales is capped annually at £9,250. Add to this your accommodation costs -currently averaging out at £7,475 per annum, excluding London and Edinburgh - plus other major expenses such as food, transport, course materials and going out, which means that young people leave university with average debts of £48,470 (Student Loans Company).
Much of this is covered by tuition and maintenance loans but with the high rates of interest accruing on student loans year on year, many graduates end up owing far more than they borrowed for their degree in the first place.
It’s not surprising then that concerns about student debt is having an impact on the career choices made by young people with the result that many are now choosing apprenticeships over university to access their dream job.
Apprenticeships – a valuable career path
Over the last decade, perceptions of apprenticeships have been transformed. The belief that apprenticeships were only relevant for trades and manufacturing has been blown out of the water by forward-thinking employers who value developing their own people.
Data captured by RateMyApprenticeship shows a two-thirds increase over five years in those citing apprenticeships as a valuable career path, a strong indication to employers that this way of learning is a valuable investment for attracting the best talent.
Apprenticeships are far more than just a qualification and it is important when weighing up future study options to consider all the other aspects of the programme around behaviours, learning to be part of an organisation and developing ‘soft’ skills.
In fact, it is these aspects of apprenticeship schemes that employers find most useful when hiring. According to a study commissioned by the Association of Accounting Technicians conducted among 1000 organisations, nearly half of employers (49%) surveyed said they would prefer to see experience from a relevant apprenticeship or previous position on a candidate’s CV compared to only 24% who would prefer a related degree. When asked why, 71% said it was because apprentices had demonstrated their skills in a practical setting and 62% replied that it showed they had a better understanding of the workplace.
Increase the number of apprentices
Apprenticeships are partly paid for by government funding and via a 0.5% levy taken from large companies with the intention of using the money to improve skills and provide training. Employers can recover this levy through the delivery of apprenticeship training for individuals at their own workforce or can transfer it to smaller businesses to use it for apprenticeship schemes. The overall aim of the levy is to increase the number of apprentices. With the government promising a shake-up of apprenticeship funding to allow businesses more flexibility over how they spend the levy, it is likely that more training will be provided in this way.
It’s important to remember that apprenticeships are not just for school leavers and young people. There are hundreds of schemes available for any business and people of all ages can apply. Funding can also be used to upskill existing employees as well as to recruit new talent to the organisation. As well as obtaining a professional qualification or a degree, apprenticeships are about people having the level of investment in their skills to make them the best they can be in their roles at work.
Tailor apprenticeships to suit your business
Reed Learning has a long history of helping people to learn and develop new skills through apprenticeships. As an established government-approved apprenticeship provider, we work with levy-paying organisations to help their apprentices complete an industry-standard qualification while they learn new skills for their role. Our experience of developing the HR, L&D and Accountancy skills of hundreds of apprentices nationally means we know exactly how to tailor courses in the most flexible way to suit your business.
As your apprenticeship partners, we will:
Develop a high-quality apprenticeship programme
Support your recruitment and selection process
Deliver the training programme including preparation for end-point assessments
Select an end-point assessment provider
Help you secure a good return on investment.
Apprenticeships we offer:
Accounting
Human Resources
Learning & Development
CIPD Level 3 Learning & Development Practitioner Apprenticeship
CIPD Level 5 Learning & Development Consultant/Partner Apprenticeship
Further information
For further information about apprenticeships with Reed Learning contact us to speak to one of our specialist team.
