The report by 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. The report builds on ReGenerate’s Good Jobs Project, and the work of the Midlands Employer Alliance, which it launched in 2024 with Severn Trent.
Care leavers and ex-offenders among hardest hit by broken apprenticeship system
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:
- 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
- Increase employer support – raise support payments from £1,000 to £3,000 for businesses hiring marginalised apprentices and expand funding eligibility
- Reform training provider funding – allow more flexible payment models before apprenticeship completion, incentivising providers to support diverse candidates
- 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:
"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.
– Nicola Drury, UK Head of Skills & Apprenticeships, Amazon
“Toyota GB Plc are proud to support ReGenerate’s proposals to break down barriers to apprenticeship opportunities for all and help the government to kickstart economic growth. We are committed to taking crucial steps towards fostering a more inclusive and diverse workforce, and to work in partnership with ReGenerate and other organisations to champion access for marginalised groups – creating pathways for untapped talent but also laying the groundwork for sustainable economic growth and innovation within the Automotive industry.”
– Carolyn Bundey, Senior Manager Strategic Projects, Toyota GB Plc
“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.”
– Neil Morrison, Human Resources Director, Severn Trent
"At Birmingham Airport, we believe that apprenticeships are highly effective routes into employment, including for those who want to work but find themselves on the margins of the jobs market. That’s why we’re delighted to support ReGenerate’s policy ideas."
– Antoinette Farrell-Jones, People Director, Birmingham Airport
“At the NEC Group we recognise the huge importance of apprentices. Our apprenticeship programme has been running for almost eight years, and over that time we have welcomed more than 180 apprentices to develop their skills and achieve qualifications across all areas of our business. We agree that foundation apprenticeships should provide individuals with a shorter time commitment of 3-6 months, mentoring and pastoral support, and greater flexibility in requirements for English and maths, so we are fully supportive of ReGenerate’s policy ideas.”
– Melanie Smith, CEO, NEC Group
“Most managers and business leaders recognise that tapping into 'sidelined' talent – whether care leavers, people with convictions, or neurodivergent individuals – is not just the right thing to do, but also a smart strategy for growth. Embracing diverse talent strengthens our workforce, benefits our communities and drives innovation. But businesses can’t do it alone. That’s why CMI supports ReGenerate’s approach to expanding access to foundation and Level 2 apprenticeships, helping line managers to work with these new recruits, to unlock their potential and create real opportunities. It’s a win-win for businesses and society alike.”
– Petra Wilton, Policy Director, The Chartered Management Institute (CMI)
“As a sector that can truly deliver opportunities to all, UKHospitality supports the proposals being put forward by ReGenerate to widen apprenticeship opportunities and allow us to unlock a broader pool of talent. We have a fantastic track record in helping people into work from a range of backgrounds and helping them to thrive in the workforce, but the inflexibility in the current system can still be a blocker to getting even more people into apprenticeships. Our work with the Department for Work and Pensions to provide entry-level and pre-apprenticeship training that meets employer needs has delivered extremely positive results and shows the benefit of collaboration to tackle economic inactivity.”
– Kate Nicholls, CEO, UKHospitality
