Apprenticeships will contribute 34 billion pounds to UK economy
This figure includes gains to the economy from higher wages, business profits and taxes of 31 billion per year, an estimated reduction in unemployment benefit payments of 370 million pounds per year, and benefits to organisations while training apprentices of 1.9 billion pounds per year (in 2014 prices). The ratio of benefits to costs of apprenticeships is 21 for the national economy for each 1 pound of public money spent.
In addition the research shows that the number of people starting an apprenticeship each year has grown from around 100,000 in 1950 to more than 440,000 people in 2013-14, and the government is on course to deliver in excess of 2 million apprenticeships in the lifetime of this parliament.
If this upward trend in recruitment continues, the national economy stands to gain 50 billion by 2025 and 101 billion pounds by 2050. If the number of employers taking on apprentices rises still further, these benefits could increase by 8 billion pounds in 2050, giving a total gain of 109 billion. ■