The Dispatch · The Training IssueSeptember 2026
A question asked at a business event. Our answer is not a polite one.

You don’t have a skills shortage.
You have a training shortage.

Nearly a million young people are outside the door. Training for young apprentices is now fully funded. And some employers would still rather pay £3 to £4 an hour more for somebody trained somewhere else. Here is why that matters so much for the next generation, and what we lose if more businesses do not get behind this.

7 min read 9 sources cited Figures sourced, opinions labelled

At the Hertsmere Think Tank at West Herts Golf Club, I was asked a question I have not been able to shake.

“Why would I employ an apprentice when, for £3 to £4 an hour more, I can get somebody with experience who can come in and do the job?”Asked at the Hertsmere Think Tank, 2026.

It is a fair question to ask. It is the wrong question to act on. And the fact that it still gets asked, out loud, at a business event in 2026, tells you exactly why so many young people are being left on the bench. So here is our answer. It is not a polite one.

01 · The £3 to £4 an hour

On paper,
it adds up.

Let us be fair to the question first. For £3 to £4 an hour more than an apprentice, you get someone who can walk in and get on with it. For a small business that is real money, and I understand why it looks like the sensible trade.

£8.00the lowest legal hourly rate for an apprentice under 19 or in their first year, since 1 April 2026.Apprentice rate, Acas
£5,850 to £7,800roughly what £3 to £4 an hour more adds up to over a year, on a 37.5-hour week.Our calculation
£0employer National Insurance on an eligible apprentice under 25. An experienced hire aged 21 or over normally attracts it.NIC Act 2015; HMRC

But it only adds up if you stop the sums at the hourly rate.

That extra £3 to £4 an hour buys you somebody else’s training. Someone, somewhere, took a chance on that person, paid them while they learned and put up with their mistakes. You are not avoiding the cost of training. You are relying on another business to have paid it for you.Opinion · the author’s, stated plainly.

And the person you hired for £3 to £4 an hour more knows exactly what they are worth. The next employer only has to offer a little more than you did.

I do not think the person asking meant any harm. I think they said out loud what plenty of employers privately believe: experience is something you buy ready-made, and training is somebody else’s job. That belief is costing us a generation.

02 · The bit nobody wants to hear

A shortage
we built.

“Somebody with experience” is exactly who every other business is trying to hire too. Skills shortages are real. But if every business waits for somebody else to train the people it wants to hire, nobody trains anybody. We all end up fishing in the same small pond, poaching each other’s staff, pushing up salaries and wondering why nobody stays. A £3 to £4 an hour premium does not stay at £3 to £4 for long when everyone is chasing the same people.

27%of all UK vacancies in 2024 were skill-shortage vacancies, hard to fill because applicants lacked the skills, qualifications or experience. Up from 22% in 2017.DfE, Employer Skills Survey 2024
981,000young people aged 16 to 24 in the UK were not in education, employment or training, April to June 2026. That is 13%, and 30,000 more than a year earlier.Office for National Statistics
That is not a skills shortage. It is a training shortage. Nearly a million young people are outside the door, and a jobs market that only wants people who already have experience has nothing to say to them.Opinion · the author’s, stated plainly.
03 · We have tried “not my problem”

The front door
got narrower.

Apprenticeships were meant to be a front door into work for young people. For years, that door got narrower, and the CIPD warned the system was encouraging employers to rebadge training for existing staff as apprenticeships.

41% downapprenticeship starts for under-19s between 2015 and 2023. Down 36% for 19 to 24 year olds.CIPD analysis of DfE data
23.8%under-19s’ share of apprenticeship starts in the first half of 2025/26, the lowest in five years.FE Week
250k to 150kapprenticeship starts from England’s most deprived areas, 2015/16 to 2022/23.Youth Futures Foundation
A system that funds senior leadership qualifications for people who already have careers, while school leavers are told “experience required”, is not a skills strategy. It is a members’ club.Opinion · the author’s, stated plainly.
04 · The excuse cupboard is bare

“Too expensive”
no longer works.

“It is too expensive” used to be the go-to line. Not any more.

What an employer can get for a young apprentice now

Training fully funded. From 1 August 2026, the government fully funds apprenticeship training for all eligible 16 to 24 year olds, for levy and non-levy employers alike.

A hiring payment of up to £2,000. From 1 October 2026, employers who do not pay the levy can get up to £2,000 when they take on a new apprentice aged 16 to 24.

No employer National Insurance. Employers pay no employer National Insurance on eligible apprentices under 25, up to the upper earnings limit.

A further £3,000 in some cases. Hire an 18 to 24 year old who has been on Universal Credit for more than six months and the Youth Jobs Grant adds £3,000.

Training paid for. National Insurance gone. Cash on the table. The only thing left for an employer to supply is the one thing no government can fund: time, patience, and a manager who actually cares whether the young person succeeds. That is the real cost of an apprentice, and it is exactly what separates good employers from the ones who post about skills shortages.

05 · And it pays back

Not charity.
Investment.

96%of employers with apprentices have seen at least one benefit.GOV.UK employer guide
78%say apprentices improved productivity.GOV.UK employer guide
74%say apprentices improved product or service quality.GOV.UK employer guide

Those are not the numbers of a social responsibility project. They are the numbers of a business investment.

06 · If more businesses do not get behind this

What we lose
if we don’t.

This part is our view, not a statistic. But put it next to the numbers above and tell me it is far-fetched.

The first rung disappears

When every entry-level job asks for two years’ experience and nobody will give anyone the first day, “entry level” stops meaning anything. Young people are told the ladder is not for them.

Waiting becomes the career

The longer a young person waits for a first chance, the harder the second one gets. A two-year gap at 20 reads very differently from a two-year apprenticeship.

Skills shortages become permanent

Businesses keep poaching from each other and paying over the odds for people who leave after twelve months. Nobody asks who was meant to be growing them.

Opportunity is decided by postcode

If the only young people who get a start are the ones with contacts or parents in the trade, we lose the talent of everyone else.

Apprenticeships become a perk

A route designed to open doors ends up as a training budget for people who are already comfortable.

The bill lands on all of us

Young people with nowhere to go do not disappear. The cost turns up in lost talent, lost tax, lost local spending and lost belief that work is worth it.

And for the business that would not take a chance on a 17 year old? In ten years, the person who could have been running its operation will be running a competitor’s.

07 · If it becomes normal

Grow them,
don’t poach them.

Flip it round. Every employer who takes on one young apprentice builds a future supervisor who already knows their customers, their systems and their standards. Nobody had to poach them. Nobody had to pay a recruitment fee for them. They grew up in the business.

Multiply that across a town, a county, a sector, and the “skills shortage” starts to look a lot less like bad luck and a lot more like a choice we made.

08 · The ask

Commit
to one.

The Com’mon People was built on mutual aid. Most small employers cannot build a training academy on their own, and they do not need to. That is the point of all of us. So we are asking every employer reading this to get behind this campaign.

Three things you can do

Commit to one. Take on one young apprentice in the next twelve months.

Change the question. The next time someone asks “why would I employ an apprentice?”, send them this dispatch.

Share what works. Tell us what went right and what went wrong, so the next business does not have to learn it the hard way.

Pay £3 to £4 an hour more for experience and you are buying the product of somebody else’s apprenticeship. Fine, once. But somebody has to go first. If you hire an apprentice because they are cheap, it will fail. And frankly, it should. If you hire an apprentice because you want to build the people your business will need in five years, it could be one of the best decisions you ever make. So the better question is not “why would I employ an apprentice?” It is “who is going to train the people I will be desperate to hire in 2031?” If the answer is not “me”, do not be surprised when the answer turns out to be “nobody”.Our view, plainly.

Sources & references

Opinions in this piece are marked as the author’s own. Apprenticeship funding rules changed in August 2026 and continue to change, so check the current GOV.UK guidance before acting on any figure here.

  1. Apprentice minimum wage (£8.00 an hour) from 1 April 2026, for apprentices under 19 or in their first year. Acas, “Apprentices: Pay” (updated June 2026); Colchester Institute, “Apprentice Minimum Wage”. The £5,850 to £7,800 figure is our own calculation: £3 to £4 an hour, 37.5 hours a week, 52 weeks.
  2. 27% of vacancies were skill-shortage vacancies in 2024, 22% in 2017. Department for Education, “Employer Skills Survey 2024”.
  3. 981,000 young people aged 16 to 24 NEET (13.0%), April to June 2026, up 30,000 on the year. Office for National Statistics, “Young people not in education, employment or training (NEET), UK: August 2026”.
  4. Apprenticeship starts down 41% for under-19s and 36% for 19 to 24 year olds, 2015 to 2023, and the rebadging concern. CIPD analysis, reported in People Management, May 2024.
  5. Under-19s took 23.8% of apprenticeship starts in the first half of 2025/26. FE Week, March 2026.
  6. Apprenticeship starts from the most deprived areas of England fell from 250,000 to 150,000, 2015/16 to 2022/23. Youth Futures Foundation, March 2025.
  7. Full funding for eligible 16 to 24 year olds from 1 August 2026, up to £2,000 hiring payment for non-levy employers from 1 October 2026, £3,000 Youth Jobs Grant. Department for Education, “The Growth and Skills Levy”; GOV.UK, “Apprenticeship funding” (updated July 2026).
  8. Zero-rate employer National Insurance for apprentices under 25, and the separate relief for all employees under 21. National Insurance Contributions Act 2015, section 1; HMRC, “Employer NICs reliefs for employees under 21 and apprentices under 25”.
  9. 96% of employers with apprentices report at least one benefit, 78% improved productivity, 74% improved product or service quality. GOV.UK, “Achieving the benefits of apprenticeships: a guide for employers”.
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