Care leavers locked out of apprenticeships – new report backed by large employers

A new report backed by leading British businesses has sounded the alarm as young people leaving the care system are being locked out of jobs and training en masse, despite the UK facing almost 1m job vacancies.

The report by the charity ReGenerate, calls for urgent apprenticeship reform to help businesses fill labour vacancies by hiring from marginalised groups, including care leavers, ex-offenders, and neurodiverse individuals, while helping to deliver national priorities.

Currently, the UK has 1.5 million unemployed people and 9.3 million economically inactive individuals, yet many face barriers preventing them from entering the workforce. At the same time, not addressing the problem of unfilled vacancies could cost the UK economy tens of billions per year, while the government spent nearly £270 billion on benefits in 2023-2024.

Backed by over 10 leading businesses, including Co-op, Birmingham Airport and NEC Group, the report argues that targeting apprenticeships towards care leavers and other marginalised groups could bridge this gap, drive economic growth, and create lasting employment opportunities

Research shows that care leavers are four times more likely to be unemployed than their peers and one-third will experience homelessness within two years of leaving care. Ex-offenders face similar barriers to work, with only 17% getting a job within a year of leaving prison. However, apprenticeships could provide a critical pathway into sustainable careers if the system is fixed.

Claire-Emily Martin, Senior Associate at ReGenerate, said:

“With the UK economy at a tipping point, we – and business leaders nationwide – are urging a step change to apprenticeships, which are so crucial in providing opportunities to some of society’s most sidelined individuals.

“Ex-offenders and people leaving care are particularly badly affected, having often experienced unimaginably rocky starts to their lives. We may be in the throes of a skills, labour force and economic crisis, yet untapped talent is everywhere. We need to take urgent action to remove barriers to entry for the people who need it most.”

A four-step Plan to Fix Apprenticeships

To unlock employment opportunities for care leavers and other marginalised groups ReGenerate’s report outlines four urgent policy recommendations:

1. Target foundation apprenticeships toward marginalised groups – launching a three to six-month paid programme combining employability training, sector-specific skills, and mentoring to prepare candidates for full apprenticeships
2. Increase employer support – raise support payments from £1,000 to £3,000 for businesses hiring marginalised apprentices and expand funding eligibility
3. Reform training provider funding – allow more flexible payment models before apprenticeship completion, incentivising providers to support diverse candidates
4. Remove unnecessary Functional Skills barriers – introduce greater flexibility in English and maths requirements, particularly for industries where these skills are not critical to job performance or training

Business Leaders Back Apprenticeship Reform

Employers across industries have thrown their weight behind ReGenerate’s recommendations:

Nicola Drury, UK Head of Skills & Apprenticeships, Amazon said:

“Maximising apprenticeship opportunities for marginalised groups isn’t just about social justice – it’s about unlocking untapped talent to help businesses thrive. Through our existing programs, we’ve already seen how apprenticeships and targeted employability schemes can transform lives and strengthen businesses. However, ReGenerate’s proposals to enhance foundation apprenticeships, increase employer support payments, and reform skills assessment requirements represent exactly the kind of bold thinking we need to create a more inclusive and effective apprenticeship system. By implementing these changes, we can better support both employers and apprentices while building a more dynamic and diverse workforce for the future.”

Neil Morrison, Human Resources Director, Severn Trent said:

“We have seen first-hand how rebalancing apprenticeships towards those who need it most can be game-changing; not only for the individuals in question, but for our business. It has considerably changed the way we at Severn Trent approach recruitment, fill our vacancies and shape our social strategy, for the better. It’s a win-win, which is why we support ReGenerate’s proposals.”