08 January 2026

How partnerships can help LAs grow the labour market through apprenticeships

How partnerships can help LAs grow the labour market through apprenticeships image
© Realise

Innovative partnerships can help local authorities fill critical skills gaps and grow the labour market by boosting apprenticeship starts, a leading training provider has highlighted.

Realise – one of the largest apprenticeship providers in the UK – said councils working with specialist training providers have reported clear increases in apprenticeship enrolments, helping them to meet challenging targets, save costs and build sustainable capacity.

The focus on apprenticeships comes at a pivotal time for councils following the recent Budget announcement outlining reforms to the apprenticeship system and increased support for skills development.

Changes to funding arrangements and plans to expand fully funded apprenticeship opportunities for young people in small and medium-sized enterprises (SMEs) are expected to come into effect over the coming years, creating both opportunities and complexity for local authorities and employers.

Local authorities play a key role in boosting apprenticeships in SMEs. These smaller businesses are vital for local services like social care, housing, and environmental services, but they often face logistical challenges in hiring and retaining apprentices.

Training providers such as Realise can ease the burden by partnering with councils and acting as the key point of contact for employers, simplifying processes and offering guidance on everything from funding rules to the different types of training opportunities.

This includes helping councils and employers understand how forthcoming apprenticeship reforms and funding changes can be applied locally, ensuring new national policy translates into practical outcomes on the ground.

Karen Matthews, Director of Business Skills Solutions at Realise, said: ‘SMEs are so important to the overall economic health of a local area. Smaller businesses help to retain talent in the community and support labour market growth.

‘Nurturing talent through apprenticeships has always been important but many SMEs feel overwhelmed by the process and the amount of red tape.

‘There is confusion about legislation and funding, they have limited time, and often have a lack of confidence when navigating apprenticeship funding and processes.

‘Local authorities are asked to increase apprenticeship uptake amongst SMEs to help address the skills shortage – and partnering with a training provider has been shown to increase enrolments significantly.

‘With further reforms to the apprenticeship system now on the horizon, having a trusted partner to help interpret policy changes and guide employers through new funding rules will be increasingly important.

‘When SMEs understand the benefits and have a trusted training partner by their side, they're far more likely to take on apprentices. This is how we can turn targets into real results and impacts for local economies.’

SMEs are the backbone of the economy, making up 99% of all UK businesses, but their participation in apprenticeships has been in consistent decline over recent years.

The number of small employers – those with 0 to 49 staff and at least one apprentice – is consistently decreasing. SME participation dropped by 14% in 2022/23 compared to 2021/22, representing a missed opportunity for councils to develop local talent and meet targets.

Realise has experience working with numerous councils to successfully boost the number of apprentices across multiple sectors, as well as increasing retention and completion rates.

One apprenticeship lead at a local authority said: ‘Realise has been instrumental in boosting apprenticeship numbers across our area. Their practical, honest and collaborative approach has taken the stress out of the process for employers and the results speak for themselves.’

A recent report by the Edge Foundation found that nearly 70% of SMEs would be more likely to take on a young apprentice if they had access to tailored brokerage and hands-on support.

For more information, visit: https://realisetraining.com/smeapprenticeship?utm_source=LocalGov&utm_medium=Advertorial&utm_campaign=Local+Authorities&utm_id=Local+Authorities 

This article was sponsored by Realise.

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