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Article | Beyond Data

2025 Apprenticeships: Strategic insights for HR and reward leaders

By Zoe Lancaster | July 3, 2025

Apprenticeships in the UK are a route into work and are increasingly being seen as a strategic lever for workforce development.
Compensation Strategy & Design|Employee Experience|Total Rewards
Pay Trends

In a labour market defined by transformation, apprenticeships are stepping into the spotlight, and it’s not just as a route into work, but as a strategic lever for workforce development. For HR, reward and compensation professionals, the question is no longer whether to engage with apprenticeships, but how to design programmes that are competitive, inclusive and aligned with long-term business goals.

WTW’s 2025 Apprenticeship Pulse Survey Report offers a timely view into how UK employers are evolving their approach to apprenticeships. Drawing on insights from a wide range of sectors and organisation sizes, the report explores how companies are structuring pay, managing performance and leveraging apprenticeships as part of their broader talent and reward strategies.

Apprenticeships as a talent strategy

Apprenticeships are increasingly being used to address critical workforce challenges — from closing skills gaps to improving social mobility. However, the level of strategic intent behind these programmes is changing. Employers are no longer treating apprenticeships as isolated initiatives; they’re embedding them into workforce planning, succession pipelines and diversity agendas.

This shift is happening against a backdrop of national policy changes and growing public interest. A recent BBC article highlighted the UK government’s decision to withdraw funding for postgraduate apprenticeships for those 22 years and older in England, redirecting investment toward lower-level training. This move underscores a broader emphasis on apprenticeships as a foundational tool for early-career development and workforce renewal.

Pay and reward: Balancing fairness and competitiveness

Structuring apprentices’ pay is one of the most complex areas for reward professionals. With multiple apprenticeship levels, regional cost-of-living differences and evolving expectations around fairness and transparency, there’s no one-size-fits-all approach.

Our survey report highlights a range of practices, from how starting salaries are set to whether pay is differentiated by region or apprenticeship level. For many organisations, the challenge lies in balancing internal equity with external competitiveness, especially in high-cost areas like London.

For those reviewing their approach, key questions to consider include:

  • Are our apprentice pay structures aligned with market benchmarks?
  • Do we differentiate pay appropriately by level and location?
  • How do we ensure transparency and fairness without overcomplicating the model?

Performance, progression and retention

Apprenticeships are increasingly seen as a pipeline for future talent, making performance management and progression planning critical. The survey report reveals a growing trend toward integrating apprentices into existing performance frameworks to ensure they’re supported as well as held to meaningful standards.

Retention is another key focus. Many organisations now offer permanent roles at the end of apprenticeship programmes, but the criteria and processes for doing so vary widely. For HR teams, this raises important considerations around assessment, readiness and long-term career development.

Beyond pay: Benefits, bonuses and recognition

While pay is a central concern, the broader reward experience also matters. From bonus eligibility to access to benefits and study support, organisations are exploring how to create a compelling value proposition for apprentices.

Some are extending corporate bonus schemes to apprentices, while others are experimenting with financial recognition programmes or tailored benefits packages. The goal? To ensure apprentices feel valued and integrated — without creating unnecessary complexity or cost.

The Apprenticeship Levy: Untapped potential?

The Apprenticeship Levy, a UK government initiative designed to fund apprenticeship training for employers, remains a powerful but often underutilised tool. While most large employers contribute to the levy, many still struggle to use their full allowance. The reasons vary, from limited programme capacity to challenges navigating the funding rules.

For reward and HR leaders, this presents both a challenge and an opportunity. With the right planning, the levy can be a strategic asset to fund entry-level roles plus upskilling and reskilling initiatives across the business.

What this means for HR and reward leaders

The 2025 WTW Apprenticeship Pulse Survey Report underscores a clear message: Apprenticeships are evolving, and so must the strategies that support them. For HR and reward professionals, this means:

  • Reviewing pay structures to ensure they’re competitive and future-proof
  • Aligning performance and progression frameworks with broader talent goals
  • Leveraging the levy more effectively to support workforce development
  • Creating a holistic reward experience that supports attraction, engagement and retention

Attract talent, build skills, drive long-term success

Apprenticeships in 2025 are becoming a strategic imperative. As the workforce continues to evolve, organisations that invest in well-designed, well-rewarded apprenticeship programmes will be better positioned to attract talent, build skills and drive long-term success.

Author


Zoe Lancaster
Associate Director, Rewards Data Intelligence
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