Reform UK proposes tax rebates for firms to boost apprenticeships

Reform UK is proposing a system of tax rebates for businesses to encourage the uptake of apprenticeships, with the party's education spokeswoman, Suella Braverman, suggesting that taxpayers should contribute to the wages of young apprentices.

During a visit to McLoughlin Group Holdings in Enfield, north London, where she participated in a painting and decorating lesson with apprentices, Braverman outlined Reform's "apprenticeship wage credit." This initiative would offer small and medium-sized enterprises a 30% rebate on the wages of apprentices aged 16 to 18.

Braverman also advised students awaiting their GCSE results on Thursday to consider learning a trade rather than falling victim to what she termed "the great university scam."

Prime Minister Andy Burnham has previously expressed a desire for teenagers to have technical career pathways that could rival traditional university degrees. The current government has been implementing reforms and exploring methods to encourage more young people into employment, including providing some parents on benefits with up to £4,500 annually to incentivize their children to pursue apprenticeships.

Former minister Alan Milburn is currently investigating the reasons behind the high number of young people who are not in employment, education, or training (NEETs).

Reform UK stated that this announcement is the first in a series of proposals aimed at achieving 600,000 apprenticeship starts per year by the end of the next Parliament, projected to be 2034. The party plans to fund these proposals by prohibiting foreign students from accessing taxpayer-funded loans and by eliminating what it refers to as "Mickey Mouse degrees."

Reform estimates that its policy, which also includes a £2,000 retention bonus for apprentices, could cost between £1.48 billion and nearly £2 billion over five years.

Braverman argued that there is an "excessive number of graduates with qualifications that don't match the skills needed for our country," asserting that learning a trade would be a more productive use of their time. Apprentices typically receive lower wages but gain valuable on-the-job training and practical work experience.

At a press conference, Braverman declared, "We're firing the starting gun on unleashing a technical and vocational renaissance of homegrown skills." She added, "Reform will not do this because it fills us with some jingoistic pride but because we will do what it takes to save Britain from the perpetual doom loop of decline, debt and despair that we're currently in."

The MP stated that the apprenticeship wage credit would save businesses an average of £4,000 per apprentice annually. The £2,000 tax-free retention bonus would be awarded to workers who "show loyalty" by remaining with the business that trained them for at least two years after completing their apprenticeship.

When asked if this policy would lead to university closures, Braverman said she did not foresee that outcome. Instead, she suggested that universities should "repurpose" themselves into construction and manufacturing colleges.

Pressed for examples of "Mickey Mouse degrees," Braverman cited "gender studies" and "golf course studies," stating, "There's not a necessity, there's not a value in many of these degrees."

The British and International Golf Greenkeepers Association (BIGGA) has previously criticized Braverman for similar comments, labeling them "negligent and potentially damaging." Jim Croxton, BIGGA chief executive, commented, "Golf course management is a growing industry with currently more vacancies than qualified applicants. Anyone successfully studying for a degree in this field is effectively guaranteed employment in a vibrant industry."

A Labour Party spokesperson emphasized that all young people "deserve a clear route to a good career," whether through "a properly funded apprenticeship, high-quality technical education or university." The spokesperson added, "That's exactly what this Labour government is already delivering, with 500,000 new jobs, apprenticeships and training opportunities to help young people earn or learn, including a guaranteed job for 18–24-year-olds who have been out of work for 18 months."

On Wednesday, Conservative shadow education secretary Laura Trott acknowledged the demand for apprenticeships but claimed the Labour government "aren't doing enough to boost supply." She stated, "Our New Deal for Young People would axe the dead end degrees that don't lead to jobs and instead invest in apprenticeships giving school leavers more choice."