Ministers are turning to the Netherlands for inspiration on how to overhaul Britain’s fragmented skills system, with a new report urging the government to adopt a ‘no dead ends’ approach to apprenticeships that guarantees young people a clear path into stable, well-paid work.
A study by the Resolution Foundation, published today, argues that the UK’s current system is failing a generation. Too many apprenticeships are low quality, short term, or lead nowhere. The Dutch model, by contrast, offers something radical: every apprenticeship is part of a broader vocational ladder, where a level 2 qualification automatically feeds into level 3, and so on, with employer backing built in from the start.
“In the Netherlands, you don’t just get a certificate. You get a career,” said Sarah Coles, senior policy analyst at the Resolution Foundation. “There is a clear route from school to skilled work, with wages that keep up with inflation. Here, we have a patchwork of schemes that leave young people stranded.”
The report comes as official figures show youth unemployment in the UK rising to 4.8 per cent, with real wages for under-25s still below 2008 levels. In the Netherlands, youth joblessness is half that, and apprentices earn an average of £12.50 an hour more than their UK counterparts.
Under the Dutch system, employers and trade unions jointly design apprenticeship standards, ensuring they match real labour market needs. Training is paid for through a collective levy, so no business bears the full cost alone. And crucially, apprentices are treated as employees from day one, with full rights and a minimum wage of around €14 per hour for over-21s.
“It’s about dignity,” said Tom Woodcock, a 24-year-old former apprentice from Sheffield who now works as a welder. “I did a level 2 in engineering, then got stuck. There was no automatic progression. My mate in Amsterdam went from level 2 to level 4 in three years, and now he’s earning €35,000. Same industry, different system.”
The UK government has already signalled interest. Skills Minister Jacqui Smith told the BBC last week that she wants to see “lifelong learning that doesn’t hit dead ends.” But campaigners say warm words are not enough. The levy system introduced in 2017 has funnelled billions into large employers while small firms, who take on most young apprentices, are left out.
“We need a fundamental shift,” said Frances O’Grady, former general secretary of the TUC. “That means reinstating collective bargaining over skills, guaranteeing pay progression, and scrapping the ‘apprentice wage’ which is still a poverty wage in many sectors.”
At present, the national minimum wage for apprentices under 19 is just £5.28 an hour. For a 20-year-old in London, that is not enough to cover rent. The Dutch model starts apprentices on a wage that rises each year, linked to the adult minimum wage.
The report also highlights regional divides. In the North East, only 12 per cent of young people complete a full apprenticeship framework, compared with 22 per cent in the South East. “This is not just about training,” said Coles. “It’s about opportunity. If you grow up in Sunderland, your chances of a decent apprenticeship are half what they are in Surrey.”
The government is expected to publish a white paper on skills next month. Insiders say the ‘no dead ends’ principle is likely to be central, but the devil is in the detail. Whether ministers will match the Dutch investment, and give unions and small employers a real say, remains to be seen.
For Woodcock, the message is simple: “Stop treating young workers as cheap labour. Give us a ladder. We’ll climb it.”
