Over a third of mid-sized (35%) businesses in the North West are planning to increase apprenticeship hiring in 2026 following the government’s recent announcement of free training for apprentices under the age of 25, according to research from accountancy and advisory firm, BDO.
BDO’s survey of 500 leaders of mid-sized businesses reveals that over a fifth (21%) will increase the number of apprentices they hire in 2026, while 15% will start hiring apprentices.
This comes following the government’s £725m package of reforms to the apprenticeship system, announced in December, aimed at helping to tackle youth unemployment and drive economic growth [1].
As part of the package, the government has announced it will cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses by removing the 5% co-investment rate for SMEs.
Amanda Harvey, HR & CI Director at logistics specialist Staci, said:
“Historically we have offered apprenticeships in roles across the business such as Management Degree Apprenticeships, Warehouse Operative, Procurement, HR, Finance, Team Leading and Business Improvement.
“Our apprenticeships have led to permanent roles or promotions within warehouse management, HR and procurement and have often been followed by Staci funded professional qualifications. We also offer apprenticeships to existing team members to enhance their skills and try something new.
“We began hiring apprentices when the Apprenticeship Levy was introduced and have remained committed to developing early-career talent. However, we have encountered some practical challenges with the scheme.
“The range of apprenticeship courses available remains limited, and training programmes can be lengthy. In some cases this makes it difficult to recruit apprentices at much less than the salaries of experienced team members, whilst the employer also funds the qualification and has to support and backfill off the job learning time.
“While the Levy was intended to encourage greater investment in skills and support long-term economic growth, its current structure can reduce the flexibility companies need to invest in the training that best supports their growth.
“Additional government support, such as salary subsidies for apprentices, could help make apprenticeships a more viable and attractive option, and reduce the risk of early-career talent being drawn towards short-term roles that offer higher immediate pay but offer no skills development.
“Despite the challenges, we are passionate about bringing more young people into the supply chain sector. Logistics workers are at the heart of the UK retail sector, yet the industry faces a growing talent gap, as misconceptions and low awareness hold young people back from exploring these careers. In reality, logistics offers vast opportunities: from people management and problem-solving to operations, data, and technology skills. With rapid career progression in a stable, essential sector, logistics is a smart choice for the next generation entering the workforce.”
Separate research from BDO’s ‘Young Minds’ survey of 2,000 young people aged 18-25, showed that whilst apprentices are a popular career route, 19% of young people in the North West are completely unaware of degree-level apprenticeships, with over a fifth (21%) finding access to quality apprenticeships a barrier.
Location also remains a challenge, with a fifth of university students or graduates in the region saying that they would have reconsidered their choice to go to university if they lived somewhere with more apprenticeship opportunities.
These challenges and opportunities for young people come as the majority (76%) of North West companies plan on increasing headcount overall in 2026.
Angela Cross, regional managing partner at BDO in the North West, commented:
“It’s encouraging to see so many mid-sized businesses, the engine of the UK economy, doubling down on their apprenticeship hiring, despite challenging economic conditions.
“Apprenticeships are by no means a new concept, but we know there is a shortage of high-quality, degree level apprenticeships. Those that do exist are often found in specific pockets of the UK making them less accessible to young people who are unable or unwilling to relocate.
“The Government’s funding for apprentices under the age of 25 is a significant step forward in reforming our apprenticeship system, but it is clear from both businesses and young people that more needs to be done to spread opportunity.
“A national programme linking local businesses with local schools and colleges would be a great next step. As is increasing the promotion of apprenticeships during the UCAS clearing process, so that those who have been unsuccessful in their chosen course are offered a whole range of options, not just university.”
Case study from regional business
Specialist fulfilment provider Staci operates 9 sites across the UK, with its headquarters located in Blackburn.
In the UK, Staci employs over 500 people and operates 1 million sq ft of warehousing capacity. The company offers multichannel logistics, POS fulfilment, 3PL, and warehousing solutions, and delivers services across multichannel B2B and B2C logistics, D2C and e-commerce
