University or Apprenticeships: Is the Traditional Path Changing?

Education has long been a major talking point in UK politics, with governments regularly debating how best to prepare young people for the world of work. While university has traditionally been viewed as the preferred route into a successful career, attitudes appear to be changing. With the new Prime Minister bringing a different approach to education and employment, the conversation around university and apprenticeships has become more relevant than ever.

Recent figures reported by The Guardian suggest that university enrolment has dipped slightly over the past two years, raising questions about whether young people are beginning to favour alternative pathways. Rising tuition fees and student debt, alongside the opportunity to earn while learning through apprenticeships, are encouraging many school leavers to rethink the traditional university route. This shift has also been reflected in politics, with Andy Burnham arguing that the UK should “value the hard hat every bit as much as the graduation cap” (Emma Brockes, 2026). His comment reflects a growing belief that success is no longer defined solely by a university degree, but by the opportunities each pathway can provide both professionally and financially.

The Cost of University vs Earning Through an Apprenticeship

As a university graduate myself, the advantages and disadvantages of both routes became increasingly apparent. Having attended a vocational college, apprenticeships were a common topic of conversation, whereas students at sixth forms or A-level colleges may have viewed university as the more traditional next step. This difference is reflected in progression statistics, with around 70.7% of students from sixth form colleges moving into higher education or training, compared with between 48.8% and 58.7% of students from further education colleges (Go Higher West Yorks, 2022). These figures suggest that the educational environment can play a significant role in shaping young people’s perceptions of success long before they enter the workplace.

The expectation that university is the preferred route into employment has existed for decades. At the 1999 Labour Party Conference, Tony Blair set a target for 50% of young people to enter higher education. According to the BBC, this target was achieved in 2017–18, with 50.2% of young people choosing university, of whom 57% were women. However, attitudes have continued to evolve. Since becoming Prime Minister, Andy Burnham has signalled a different approach, arguing that apprenticeships and vocational careers should be valued just as highly as university. This marks a shift away from the idea that higher education should be the default pathway for every young person.

For many school leavers, deciding between university, an apprenticeship or full-time work has become increasingly difficult. While a degree can open the door to a wider range of careers, it also comes with tuition fees, student debt and three or more years spent outside full-time employment. Apprenticeships, on the other hand, offer the opportunity to earn a salary from the outset while gaining practical experience, allowing young people to begin building both their careers and finances much earlier.

Current statistics still suggest that higher education provides advantages in many areas. A GOV.UK report published in 2025 found that 87.6% of working-age graduates were employed in 2024, compared with 68% of non-graduates. It also found that 67.9% of graduates were employed in highly skilled occupations, compared with just 23.7% of non-graduates. These figures demonstrate why university remains an attractive option for many.

On the other hand, beginning a career earlier can provide young people with a financial head start, particularly if they already know the industry they want to work in. While university offers long-term opportunities, it also represents a significant financial investment with no guaranteed outcome. As graduate numbers have increased over the past two decades, competition for professional roles has also intensified. According to the Office for National Statistics (2026), around one million young people are currently Not in Education, Employment or Training (NEET), with the BBC reporting that approximately 15% of them hold a university degree. As a result, many young people are beginning to question whether the cost of university is always worthwhile. While university and apprenticeships each present different financial opportunities and trade-offs, understanding how those choices can affect long-term earnings, savings and investment potential is becoming increasingly important.

When Does Your Financial Journey Begin?

While university and apprenticeships offer different routes into employment, and many careers may eventually overlap, one of the biggest differences is when your financial journey begins. For many university students, earning money often comes through part-time jobs that help cover living costs, while internships and work experience can provide valuable opportunities to build a CV, although some positions may be unpaid. Apprenticeships, on the other hand, are paid from the outset, allowing young people to earn an income immediately while gaining industry experience and developing their careers.

However, this does not necessarily mean that one pathway is better than the other. Degree apprenticeships, for example, have become an increasingly attractive option by combining paid employment with a qualification equivalent to a bachelor’s degree. This can improve long-term career prospects while allowing apprentices to avoid the level of student debt associated with traditional university. The trade-off is that degree apprenticeships typically take longer to complete, often between three and six years according to UCAS, while also requiring individuals to balance full-time work alongside higher education. For many young people, the decision ultimately comes down to which route offers the right balance of career opportunities, financial independence and the way they prefer to learn.

The Power of Starting Early

Whilst some people may assume that choosing university means delaying their financial journey, for many students this can be true as they balance studying alongside part-time work. However, regardless of whether you begin earning at 18 through an apprenticeship or after graduating from university, building good financial habits early can make a significant difference. Contributing to a workplace pension, setting money aside in savings or investing are all ways of laying the foundations for long-term financial security.

For apprentices, earning an income from the outset provides the opportunity to begin saving and investing earlier. Although apprentice wages can be lower than the standard minimum wage, even small, regular contributions can make a difference over time. Many apprentices may also continue living at home during the early stages of their careers, reducing living costs and potentially leaving more disposable income available to save or invest.

University students, on the other hand, often face higher living costs, tuition fees and day-to-day expenses, particularly if they move away from home. This can make saving or investing more challenging during their studies. However, part-time work, summer jobs and internships can still provide opportunities to begin building healthy financial habits. Even if investing starts later, graduates can make up ground once they secure full-time employment or join graduate schemes by investing consistently and increasing contributions as their salaries grow.

Ultimately, financial success is not determined by whether you choose university or an apprenticeship, but by the decisions you make once you begin earning. While saving provides financial security for unexpected expenses, investing offers the opportunity to grow your wealth over the long term. Whether your goal is buying your first home, building a retirement fund, travelling or achieving other financial milestones, understanding how your money can grow over time is one of the most valuable skills a young person can develop.

Making Your Money Work for You

Once you start earning a regular income, whether through an apprenticeship or after graduating from university, the next step is deciding what to do with it. While it’s tempting to leave money sitting in a current account, making your money work harder can play a big role in achieving your long-term financial goals. The earlier you begin thinking about saving and investing, the more time your money has the potential to grow.

The good news is that investing isn’t just for experienced investors or those with large amounts of money. There are plenty of ways to get started, and the right option will depend on your goals, how comfortable you are with risk and when you might need access to your money. Building an emergency fund and making the most of workplace pension contributions are often good places to start before exploring longer-term investment opportunities. If you’re considering investing, it’s also worth speaking to a qualified financial adviser who can help you understand whether an investment is suitable for your circumstances and attitude to risk.

If you’re someone who prefers a lower level of risk, products that prioritise protecting your initial investment may be worth considering. While traditional savings accounts remain a popular choice because they’re easy to access, their returns may not always keep pace with inflation over the long term. Structured Deposits provide an alternative by offering the potential for higher returns while protecting your original investment, provided the terms and conditions of the product are met. IDAD offers a range of Structured Deposit Plans designed to suit different financial goals, giving investors another option alongside traditional savings.

For those who are comfortable taking on more risk, investments such as shares, funds and even cryptocurrencies may seem appealing because of their growth potential. However, higher potential returns often come with greater uncertainty, and it’s important to understand that the value of investments can rise and fall. Structured Products offer a different approach by linking returns to the performance of an underlying market or index, with predefined outcomes. Depending on the product, they may also include a level of conditional capital protection if certain terms are met. IDAD provides a range of Structured Products designed to suit different investment objectives, helping investors choose an approach that reflects their personal goals and attitude to risk.

Ultimately, there isn’t a single “best” investment, just as there isn’t a single “best” route into a successful career. Whether you choose university or an apprenticeship, the most important step is understanding your options and making informed financial decisions once you begin earning. Starting early, investing consistently and choosing investments that match your goals can all help put you in a stronger financial position for the future.

Conclusion

Whether university or an apprenticeship is the right choice will depend on the individual. Both routes can lead to successful careers, but they can also have very different financial implications. What matters is understanding those differences and choosing the path that fits your career goals, circumstances and ambitions.

Whichever route you take, developing good financial habits early can make a significant difference. Learning to budget, build savings and understand your investment options can help you make the most of your income and work towards your longer-term financial goals.

By Morgan Whitcomb

References

UCAS. Degree Apprenticeships.

BBC News. The symbolic target of 50% at university reached.

BBC News. What does NEET stand for and how many are there in the UK?

Brockes, E. (2026). I’m torn by the hard hat v graduation cap debate. Is it wrong that I want my kids to go to university? The Guardian.

Go Higher West Yorkshire. (2022). A Comparative Analysis of Post-16 Learner Outcomes and Perspectives, Based on Studying Further Education (FE) in Either an FE College or Sixth Form Setting.

GOV.UK. Graduate Labour Market Statistics – Explore Education Statistics.

Office for National Statistics (ONS). Young People Not in Education, Employment or Training (NEET), UK.