Why Do English Employers Pay 2.5x More for Apprentices compared to Germany or Austria? FE Soundbite 829
Welcome to FE Soundbite Edition 829: 10th January 2026. Why Do English Employers Pay 2.5x More for Apprentices compared to Germany or Austria?
This is the weekly e-newsletter and e-journal by FE News: ISSN 2732-4095. We know life is busy, so here’s a snapshot of the latest announcements and epic thought leadership articles from sector influencers and thought leaders across FE and Skills this week on FE News.
Gavin’s Reflective Perspective
Welcome back and Happy New Year to you! I hope you had a brilliant break.
Why Does it cost 2.5x More For Employers To Train Apprentices in England, Compared to Germany or Austria?
We had some really interesting research from Warwick University and the Gatsby Foundation, which reveals English employers pay 2.5 times more to train apprentices in Germany or Austria! In Germany or Austria, employers who train apprentices actually turn a profit! If the government wants 50,000+ more apprentices, this cost-benefit equation needs serious attention in England. Could this be a hidden driver behind youth employment, NEETs, and employer engagement in general?
The research from the University of Warwick Institute for Employment Research and Gatsby was in conjunction with Dortmund Technical University (Germany) and 3s Research & Consulting (Austria). This is really, really interesting. Emily Erickson unpacks the research here. Using matched employer case studies, one firm per occupation in each country (looking at different occupations – HVAC and Chefs), the research compared the net costs to employers of training apprentices over the full duration of their programme.
The results are eye-opening. In England, employers training an HVAC apprentice faced a net cost of around £35,500 over the apprenticeship. This compares with approximately £14,200 in Germany, and a net benefit of just over £9,000 in Austria.
A similar pattern was observed for chef training: in England, the net cost was more than £33,000, compared to under £5,000 in Germany, and in Austria, the net benefit was £2,400. These figures take into account variations in training length across countries. In other words, they are not simply the result of longer or shorter training programmes.
Why is it more expensive to train Apprentices in England and what does this mean for employer engagement?
Cutting to it.. the cost of wages in England was a massive driver of cost.
English HVAC apprentice wages average £27,000 annually, versus £10,182 in Germany and £18,026 in Austria. Chef apprentices show the same pattern: £30,000 in England compared to £14,790 (Germany) and £17,671 (Austria).
Employer Hassle Costs and Thinking Beyond the Levy
Emily Erickson also highlighted an ’employer hassle cost’… which you can’t put a monetary figure on… but is definitely a thing… have you ever tried to navigate the .Gov site from an employer perspective? It isn’t simple!
In all three countries and occupations, Apprentices were productive, but in England, their output offsets less of the cost… but the research highlights an institutional gap: German and Austrian Chambers handle exams and quality assurance. English employers sort it out themselves, adding unquantifiable ‘hassle costs’ on top of that financial burden. Couple this with wage costs… is this interesting to know when thinking about employer engagement in Apprenticeships (beyond the Levy)?
Is the Cost of ‘Gold Standard’ Apprenticeship Training Worth the Cost To Employers?
There’s talk of Gold Standard apprenticeships, ambitions for more vocational skills at levels 4 & 5, and everyone knows apprentices should be ‘worth their weight in gold’… but look at that cost difference, plus those ’employer hassle costs’. Surely we need to be making this easier for employers to navigate… because the cost-benefit needs to stack up. According to Warwick and Gatsby’s research, it currently doesn’t.
Employers need to turn a profit. If the training and development sums don’t work out… well… could this explain the drop in employer investment in training and skills?
Does this explain the £6 Billion Drop in Training and Skills investment by employers?
In the summer of 2025, DfE highlighted that British employers reduced their investment in staff training by £6 billion in 2024 compared to 2022. With the above calculation and research, is this why??
I hope you enjoy Soundbite this week.
Epic Exclusives Thought Leadership Articles
Our Top 3 Thought Leadership Articles This Week
The Employer Costs of Apprenticeship Training in England, Germany, and Austria: Results from a matched employer study By Emily Erickson, Research Fellow – Institute for Employment Research at the University of Warwick
2025: A Whirlwind Year for Skills Policy, What’s Next for 2026? By Fiona Aldridge, Chief Executive, Skills Federation
Apprenticeship Governing Boards: What does 2026 hold? by SDN Mesma Group Co-Founder and Director, Lou Doyle
This week, we also had some other Epic Exclusives!
Diary of an Apprentice: Final Reflections on my Level 7 Senior Leadership Journey By Sakina Khan, heading innovation and commercial partnership services at NCFE
New Zealand’s Vocational Education System: New Zealand’s Tertiary Education Strategy 2025-2030 By Stuart G. A. Martin, Founder of George Angus Consulting
Social value isn’t a ‘nice to have’ it’s what apprenticeships and adult learning do best By Lindsey Poole, PGCE MEd
New Zealand’s Vocational Education System: The Legislation is Passed – What Happens Now? By Stuart G. A. Martin, the Founder of George Angus Consulting
How to Ask Well: A Practical Guide for Leaders in FE By Nathan Whitbread, The Neurodivergent Coach
Why all Vocations need AI literacy, Even if they Don’t Use it By Dr Gary F. Fisher; Academic Developer in Online Education; Liverpool School of Tropical Medicine
What’s New in the World of FE?
FE and Skills New Year Honours 2026
Announcements
Government Modernises Exam Records with new App to Help Students take next steps By the Department for Education (DfE)
Ofsted’s FE and skills FAQs By Ofsted
Voices
Building the Foundations for Ethical AI in Post 16 Education By Patti West-Smith, Senior Director of Customer Engagement at Turnitin
Why Mentoring and Supervision Matter: Sustaining Standards and Wellbeing for Careers Professionals By Oliver Jenkin RCDP, CDI Senior Professional Development and Standards Manager
Why Intergenerational Practice Could be the Key to Stronger, more Connected Communities By Janet King, Sector Manager for Education and Childcare, NCFE
Navigating Tomorrow’s Learning Landscape: 10 Forces Shaping FE and Skills in 2026 By Nilesh Patel, Global Solutions Head, Education Unit, Tata Consultancy Services (TCS)
In The Know
Join us on 2nd June in London for our NEETs collective intelligence event. Where you’ll co-create strategies and policy recommendations alongside sector leaders. This isn’t lectures, it’s rolling up sleeves and making real change. This is a massively important Collective, so help shape the report!
We hope you enjoy FE Soundbite this week. Stay curious, keep innovating, and let’s shake up the world of FE together, and catch you next year!
By Danny O’Meara, Operations Manager, FE News and