Apprentices Can Earn 270% More Than University Graduates

The average gap between the lifetime earnings of apprentices and university graduates has narrowed over recent years and currently stands at just £2,200, or 1.8%.

Apprentices in fields including arts, media and publishing are likely to outperform their graduate counterparts by up to 270%, according to a new report.

The research, carried out by Barclays (LSE: BARC.L - news) and the Centre for Economics and Business Research (CEBR), comes days after a study suggested more than a third of graduates regret going to university because of the burden of debt they face after graduation.

The report argues that, due to mounting university fees, the gap between the lifetime earnings of apprentices and graduates looks set to be eradicated completely in the coming years.

It rejects the idea that apprenticeships are only relevant in vocational and manual industries - and says business, administration and law apprenticeships accounted for the majority of positions taken up in 2014/15.

The number of people choosing apprenticeships has increased in recent years, with more than twice the number of apprentices in training today compared to 10 years ago.

After arts, media and publishing, apprentices in agriculture, horticulture and animal care were likely to outstrip their graduate counterparts in terms of wages by the highest amount - earning 211% more over the course of a working lifetime.

Those taking apprenticeships in languages, literature and culture could earn an average of 29% more than someone with a university degree across their career.

The research also points to a new Degree Apprenticeship which was introduced in 2015 and allows apprentices to earn the equivalent of a university qualification in their chosen field.

Mike Thompson, Head of Apprentices for Barclays, said: "The figures released today shows quantifiably for the first time that apprentices are getting a 'hidden pay cheque' through earning while working, that is comparable or in some cases higher than university graduates.

"This bonus means they can fast-track themselves to home or car ownership - as well as through their careers without worrying about long-term student debt."

"With (Other OTC: WWTH - news) increased tuition fees driving up the cost of university and putting it out of reach to some, we forecast that apprenticeships, particularly Degree Apprenticeships, will become increasingly more important to the UK economy, and predict exponential growth in their uptake in the near future."