Read: Young people call for abolition of the apprenticeship rate

• 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 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.”

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"

Chair of the Purpose Coalition and former Education Secretary, Rt Hon Justine Greening, said: “There’s clear cross-party consensus that more people should be encouraged to do apprenticeships. They are a fantastic way to earn while you learn, especially for young people who are concerned about the financial implications of going to university or who prefer a more technical education route. But it’s also increasingly clear that the funding system – specifically the Apprenticeship Levy - is calling out for reform. It needs to be fit for purpose for employers who require much greater flexibility if they are to ensure that apprenticeships remain as accessible as possible to everyone. It also needs to work for individuals of all ages if they want to upskill or reskill but who depend on a degree of financial security, especially in the face of current cost-of-living challenges.

“The Purpose Coalition has been working with the Co-op and other organisations to ensure that opportunity is spread as widely as possible across the country by developing solutions that will make a difference. The recent roundtable is a great example of how bringing together policymakers and businesses can drive progress on the issues that are important and the research presented by young people allowed their voices to be heard. Every political party should lean in to this to ensure that their manifesto commitments on apprenticeships reflect the needs of all parties involved.”