Ten years on from their launch, degree apprenticeships are delivering impressive outcomes for many young people, but they’re still not living up to their potential as a tool for social mobility.
Our latest report, Degree Apprenticeships: An alternative to university?, funded by AL Elevation, finds that degree apprenticeships are proving highly effective for young people who make it onto them. Completion rates are strong, earnings are high, and employers report real benefits from the programme. Yet disadvantaged young people remain underrepresented, and certain sectors continue to struggle with lower completion rates.
Introduced in 2015, degree apprenticeships aimed to integrate the academic learning traditionally associated with university degrees with the on-the-job training offered by vocational apprenticeships. Crucially, the pathway offered a debt-free route to higher education, as well as the opportunity to earn a wage alongside study.
Successive governments have hoped degree apprenticeships would help address skills shortages and boost productivity through increasing employment and reducing welfare costs. Outside of government, degree apprenticeships were also earmarked as a potentially valuable social mobility lever, offering students from areas traditionally underserved by university education an alternative, more financially secure pathway to higher level qualifications.
Who accesses degree apprenticeships?
Since their introduction in 2015, degree apprenticeships have grown rapidly, especially among 19–24-year-olds. Health, construction, and digital technology are the leading sectors for number of starts, with London and the North West leading in regional uptake. But representation among students from disadvantaged backgrounds remains narrow.1 Only around one in ten degree apprentices come from disadvantaged backgrounds; a lower share than among students at Russell Group universities.
Proportion of disadvantaged students by HE type and age group, 2016/17 – 2022/23
The average degree apprentice was also a relatively high attainer during their time at school. Our analysis shows that degree apprentices have consistently had higher average attainment at GCSE than the undergraduate cohort (where entry requirements have a wide variation across provider and course type) but remain around one grade lower than the prior attainment of undergraduates at Russell Group universities, which tend to be highly selective.
Average GCSE English and Maths score by HE type and age group, 2016/17 – 2022/23
Completion and success
Degree apprenticeships have a high success rate, though outcomes vary sharply by subject and region. Using linked administrative data, we developed a statistical model to identify which demographic and educational factors are most associated with the completion of a degree apprenticeship, and which groups of students are at greater risk of dropping out of their course.
- Apprentices in the digital, education, and science sectors have better odds of completing their programmes than those in construction or retail.
- Region also plays a role. Degree apprentices in the North West, South West, and Midlands have higher odds of completion than those in London – despite London being the most popular region for new starters.
- Female apprentices have slightly higher completion odds than males, while ethnicity is a stronger predictor of completion than socio-economic background.
- Disadvantage itself is not linked to lower completion once prior attainment and sector are controlled for, suggesting that access, not ability to succeed, is the bigger barrier.
Earnings and early career outcomes
Exploratory analysis of the early labour market outcomes of degree apprentices appears very positive. One year after completing their course, the average young degree apprentice earned around double the salary of the average graduate (£36,785 vs £18,555) in the latest available data, the 2020-21 financial year. In fact, average young degree apprentice salary one year after completion remains larger than even the average degree-holder who graduated 10 years ago. These high returns likely reflect faster entry into the labour market and strong representation in high-paying sectors like digital and engineering.
Median annualised earnings of degree apprentices and graduates 1 YAC, 2019-20 – 2020-21
What employers say
We undertook four case studies with a range of firms, three of whom currently employ degree apprentices, and one of whom does not. From our research, employers are overwhelmingly positive about degree apprenticeships, especially their role in building local talent pipelines and improving retention. Smaller firms report quicker returns, while larger organisations view them as a long-term investment. However, employers also report inconsistent training provider quality and rigid programme standards that can make it hard to adapt or switch courses.
Where next?
To deliver on the potential of degree apprenticeships, we need a sharper focus on widening participation and supporting employers in low-completion sectors. Targeted outreach and funding incentives could help more disadvantaged young people access these high-return pathways. Expanding maintenance-style support and publishing more transparent data on access and outcomes would also strengthen accountability.
Our findings point to a maturing system that is delivering strong outcomes for those who access it, but remains uneven in who benefits. Expanding access and strengthening support for disadvantaged learners, while reducing the burden on employers will be key to realising the full potential of degree apprenticeships as a vehicle for social mobility and economic growth.
