Research shows Apprentices Contribute £40 For Every £1 Invested By Government

The Department for Business, Innovation and Skills (BIS) has released the findings of a research project that show Apprentices contribute £40 to the UK Economy for every £1 invested in them by Government. The finding come as part of a study to look at the economic impact of the Further Education sector, showing that as a whole, those with FE Qualifications contribute an additional £75billion to the economy over their lifetimes. BIS commissioned the research which examined the economic value generated by Government funded post-19 qualifications. This included Apprenticeships, National Vocational Qualifications (NVQs) undertaken in college and workplace settings, and Basic Skills Qualifications. Key findings include:

• FE participants that started a qualification in 2008/09 will generate an additional £75bn for the economy over their working lives, over and above what they would have contributed if they had not achieved these qualifications.
• The benefits include increased wages and improved employment prospects for individuals, as well as benefits to employers stemming from increased productivity.
• An apprenticeship is found to add the most value on average, compared to other learning streams. The return on Government investment for apprenticeships works out at around £40 for each £1 of Government funding, when taken as an individual’s first qualification at that level. 

John Hayes, Minister for Further Education, Skills and Lifelong Learning, said, ‘This research illustrates just how important Further Education is to this country – our economy, society and individuals’ lives. That is why we are funding an unprecedented number of Apprenticeships and freeing colleges from unnecessary burdens. We are also helping employers, colleges and training providers to work together to boost skills through the £50m Growth and Innovation Fund. All these reforms will ensure that economic contribution of FE will continue to rise in the years to come.’