According to new findings from BCS, The Chartered Institute for IT, digital apprentice numbers grew by 50% in 2023—but smaller UK businesses are struggling to hire more due to bureaucracy and funding challenges.

The BCS study, which includes a YouGov poll, found that two-thirds of businesses (66%) think digital apprenticeships are effective in addressing digital skill gaps, though this is specifically in relation to the skills gap in England.

More than half (55%) said better financial incentives for employers would make it more attractive to them, alluding to the fact that further action is needed to alleviate some of the burden currently put on employers.

In particular, tax breaks or government grants would be a “huge motivator” to get more digital apprentices inside smaller organisations, the research revealed.

The 5% “co-funding” requirement for non-levy paying organisations to take on apprentices was also found to be a barrier. Removing it would reduce the disproportionate impact on small and medium enterprises (SMEs).

In its Future of Digital Apprenticeships report, BCS added that the UK government’s Apprenticeship Levy—a tax paid by employers—should be protected, but the aspects that aren’t working should be removed.

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Lucy Ireland, who serves as managing director of learning and development at BCS, commented on the issue: “Getting the digital apprentices we need over the next five years relies on convincing more SMEs to take them on, and they need both policy and financial support to do this.

“The next government has a generational opportunity to prevent significant digital skills shortages and drive forward technological innovation.

“Whilst universities are recruiting strongly to computing degrees, we need a diverse, inclusive range of pathways into the IT profession and the wider digital economy at all levels.

“That includes helping to re-skill the over 50s, who are also under-represented in tech jobs.”