Why Post-16 Reform Must Prepare Young People for Real Work

With vacancies falling, unemployment rising and nearly four in five employers reporting gaps in their workforce, the challenge now goes beyond recruitment, it’s about readiness. We are approaching 1 million NEETs and the risk is that potential talent is being left on the sidelines, while employers struggle to fill critical finance roles. Drawing on insights from ‘Filling the Gap’, AAT’s latest research Sarah Beale, AAT CEO, explores how the Government’s Post-16 Whitepaper and the introduction of V Levels could help bridge the divide between classroom learning and the skills businesses urgently need to keep the UK economy afloat.

The reality behind the numbers and a generation caught in the middle

Employers aren’t simply looking for technical expertise; they’re looking for rounded professionals. Employers told us they need people who can lead teams, think strategically, analyse data, and guide organisations through digital change. Yet, despite this, the education system isn’t keeping pace with these needs. Too often, students are leaving school or college without the practical skills or confidence required to thrive in world of work.

That’s why apprenticeships, mentoring and work placements are vital. Not as alternatives to traditional study, but as equal, credible routes into skilled employment. While the government is focused on three main pathways: A-levels, V-levels and T-levels, apprenticeships already serve as a ready-now, viable fourth pathway, delivering well-rounded, skilled talent the UK needs. We must make sure their contribution isn’t lost or diluted by the introduction of V-Levels, which risk causing a distraction from what apprenticeships already do so well.

The ambition to simplify the system and ensure clearer routes to careers exist and supported by one in four employers, as outlined in our Filling the Gap report. But the success of these reforms will depend on how effectively they help young people gain the work-readiness and transferable skills that two-thirds of employers say are missing.

A cultural shift is needed to fully recognise the value of learning while earning, combining classroom learning with real-world experience to prepare every young person is genuinely ready for work.

Building a stronger bridge between education and employment

The UK’s post-16 reforms provide a once in a generation opportunity to rethink how we prepare young people for the world of work. To make this happen, we need government support to fund highly valued apprenticeships and further training, and we need employers to invest in the skill set of their people. Skills shortages cannot be solved by government alone. We need a collaborative process with professional training at the centre to help build careers that are fulfilling, keep businesses growing and competitive, and help drive forward the UK economy

For me, several parts of the reforms stand out as particularly encouraging. First, there’s been a clear and determined effort to strengthen vocational routes for students. For too long, university has been seen as the only path to success, but that simply isn’t true. Apprenticeships and vocational qualifications aren’t ‘second best’; they’re smart, direct routes into meaningful careers, giving learners much needed real-world experience.

Equally, the focus on digital and green skills couldn’t be more timely. Technology, AI and sustainability are reshaping roles across every sector, including accounting, and digital and environmental, along with financial literacy must sit at the heart of our education system, if we want to futureproof the workforce.

It’s also exciting to see a renewed look into learner progression and career prospects. Probing into these issues will help ensure qualifications deliver real value for everyone, from school leavers, career changers to new business owners and parents returning to work. Vocational education can transform lives at every stage, and its impact is felt across the entire economy.

But for the reforms to succeed, we must also remove the barriers holding employers back. AAT’s research found that businesses face barriers to upskilling their teams, often because of cost, time or lack of suitable programmes. Not to mention how complicated it all is. Solving this requires practical, targeted support.

 That’s why we’re calling for government to:

• Create an “SME Skills Navigator” service to help small employers more easily access relevant finance training and apprenticeships.
• Develop a new campaign targeted at learners and employers to increase the attractiveness of apprenticeships, with a particular focus on SMEs.
• Urgently clarify what types of short courses in accounting and finance that will be eligible via the new Growth and Skills Levy, with clear timelines for implementation.

These steps would help employers train and retain young people while ensuring they gain the confidence, digital fluency and problem-solving skills needed to thrive in evolving industries, such as accounting.

Mind the gap

Finance roles are the backbone of every organisation, but its future depends on people. If we don’t act now to align education with work-readiness and functional skills, we risk leaving too many young people behind and weakening the foundations of our economy in the process.

The post-16 reforms can be the bridge between today’s classroom and tomorrow’s workforce. But to succeed, reform must go beyond policy, it must translate into opportunity. Let’s make sure we build it strong enough for every young person to cross.

By Sarah Beale, CEO at the Association of Accounting Technicians (AAT)