The number of applicants for degree apprenticeships in England has quadrupled over the past three years, driven by increasing scrutiny of university costs. However, businesses report facing significant challenges in expanding these programs.
In the 2025/26 academic year, there were 42,212 applications for 3,747 degree apprenticeship positions, a stark increase from 20,214 applicants for 7,255 positions in 2023/24. This translates to an average of 11.3 applications per position in 2025/26, up from 2.8 in 2023/24.
Despite this surge in demand, companies face a range of factors that deter them from hiring apprentices. Hannah Larsen, policy officer at the British Chambers of Commerce, noted that demand for degree apprenticeships is rising at a time when businesses' operating margins are under pressure. "Higher employment costs, alongside wider economic uncertainty, mean recruitment is being paused, with younger and less experienced workers hit hardest," she said.
Larsen also pointed to "considerable uncertainty over the future of apprenticeship funding." At Yorkshire-based manufacturing company Fives, head of human resources Jo Jackson expressed a desire to hire more apprentices but cited the expense of training and a lack of flexibility in apprenticeship content as major obstacles. "Business needs are changing all the time, but it's very, very difficult to change the syllabus," Jackson stated. "If we think about AI and how it's changing the world of work, the apprenticeships don't cover that. They can't change quickly enough to keep up."
Stephen Evans, chief executive at the Learning and Work Institute, observed that competition for some apprenticeships is steeper than for others, and individuals from working-class families are less likely to secure a position. The government has introduced measures to support apprentices, including a bursary for those whose families receive Universal Credit. A Department for Work and Pensions spokeswoman highlighted government support for employers, such as hiring incentives worth up to £8,000, and noted that apprenticeship training is free for businesses hiring eligible young people aged 16 to 24.