Research commissioned by the Local Government Association (LGA) found that since 2010, 42 per cent of apprenticeship starts have been over the age of 25 rather than young people entering work.
In 2013/14, under-19s made up 56 per cent of applications but only 27 per cent of starts, whereas people aged over 25 made up seven per cent of applications but accounted for 37 per cent of starts.
The LGA is calling on the government to carry out urgent reform of the system – claiming government apprenticeship schemes are failing to address youth unemployment and are being abused by employers.
Under the coalition government, two million apprenticeship places were created and the Conservative government is expected to announce in this week’s Queen’s Speech a further three million over the next five years.
But according to the LGA-funded research, carried out by the Institute of Public Policy Research, employers are using schemes to train their own low-skilled, adult workforce rather than offer opportunities to young people.
When young people were offered places, they were often paid below minimum-wage levels.
The research found a quarter of 16- to 18-year-old apprentices were being paid below their minimum-wage entitlement, with hairdressing and children’s care sectors the worst paid areas of work.
The LGA wants to see the creation of "local apprenticeship hubs", involving councils, Job Centre Plus and trade unions, to take control of apprenticeship grants for employers and better tailor apprenticeships to meet local need.
It also wants to see local areas have a greater say over the funding of careers advice and for apprenticeships to offer Level 3 (A-level standard) training rather than the current Level 2 minimum.
Apprenticeship funding also needs to focus on places for those under the age of 25 and only be open to new recruits rather than existing employees.
Peter Box, economy spokesman for the LGA, said: “Too few new apprentices are school-leavers trying to get their first job.
“With the greatest will, the government alone cannot engage over two million employers from Whitehall.
“Rather than spend more money on a struggling system, this research underlines the need for devolved training that enables partnerships of councils, schools, colleges and employers to boost opportunities locally and to ensure youngsters get the skills, experience and advice to thrive.”
Meanwhile, the LGA is also calling for an outright ban on legal highs to be included in the Queen's Speech.
It wants to see the introduction of legislation passed in Ireland more than four years ago that bans the sale of all psychoactive drugs, but exempts alcohol and tobacco.
