Trade Skills Index 2024

Construction apprenticeship completions up by 11.9% but below previous peaks

Construction apprenticeship starts and completions in England (thousands) and completions as a share of starts (%)

Apprenticeship starts down but completions up in 2022/23

Apprenticeship starts in construction declined by 5.9% in 2022/23 compared to the previous year. However, they were 8.3% higher than their previous peak in 2017/18. Conversely, apprenticeship completions increased by 11.9% in 2022/23 to 8,620, as completions as a share of starts rose to 35% from 30% the previous year. However, completions remain over 30% below their peak of 12,400 in 2017/18.

60 30 Completions (LHS) Starts (LHS) Completions as share of starts (RHS)

20

40

10

20

Much of the apprenticeship levy is unspent

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0

All employers with an annual pay bill of £3 million pay the Apprenticeship Levy. The levy is paid into a firm’s ‘apprenticeship service’ account at an amount equal to 0.5% of their annual pay bill and is available for them to use to fund apprentices. In 2021-22, £3.2 billion was raised via the Apprenticeship Levy. However, not all funds are used by employers each year, and unused funds expire after 24 months in an employer’s account. In 2020 -21, the latest year for which there are data, nearly half of funds raised two years prior were left unspent.

Apprenticeship levy funds raised and expired (£ million)

2019/20 2020/21 2021/22 2022/23 2023/24

Funds raised

£2,798 £2,910 £3,213 £3,580 £3,841

Value of funds expired (Funds first declared 24 months prior)

£847 £1,314

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Percentage unspent

37.3% 48.4%

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Sources: Capital Economics, HMRC, Office for Budget Responsibility, Department for Education, and the Education and Skills Funding Agency

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