Apprenticeships will contribute £34 billion to the UK economy this year, according to research from the Centre for Economics and Business Research (Cebr).

The figure includes gains to the economy from higher wages, business profits and taxes of £31bn per year, an estimated reduction in unemployment benefit payments of £370m per year, and benefits to organisations while training apprentices of £1.9bn per year.

The number of people starting an apprenticeship each year has grown in recent years from around 100,000 in 1950 to more than 450,000 people in 2013-14, and the government is on course to deliver in excess of two million apprenticeships in the lifetime of this parliament.

-- Advertisement --

If the upward trend in recruitment continues, the national economy stands to gain £50bn by 2025 and £101bn by 2050. If the number of employers taking on apprentices rises still further, these benefits could increase by £8bn in 2050, giving a total gain of £109bn.

Minister of State for Skills, Nick Boles, said: "Today's celebration of a hundred years of apprenticeships demonstrates how they have long played a key role in the workforce and commemorates the contribution apprentices have made to employers and the nation. Today apprenticeships are at the heart of the Government's drive to equip people with the skills that employers need to grow and compete."

(CD/JP)