Multiverse Faces Intense Scrutiny Over Apprenticeship Completion Rates
A prominent UK tech firm, founded by Euan Blair, son of former Prime Minister Tony Blair, is under mounting pressure following the release of new figures indicating that only about half of its apprentices successfully complete their courses. Multiverse, a significant player in providing apprenticeships as an alternative to university for school leavers, aims to offer young people a pathway into elite careers without the traditional academic route.
However, recent statistics from the Department for Education have revealed a completion rate of just 52.6 per cent for Multiverse’s programmes. This figure falls considerably short of the sector’s overall average, which has risen to 65.4 per cent. These statistics have drawn the attention of former government officials and raised concerns about the company’s operational effectiveness and its commitment to its original mission.
Euan Blair, who reportedly holds a net worth of approximately £375 million, possesses nearly 19 per cent of Multiverse. Based on the company’s 2022 valuation, this stake is estimated to be worth around £250 million. Current government guidelines classify education providers with an achievement rate below 50 per cent as ‘at risk.’ Furthermore, if a provider’s performance significantly deviates from its previous Ofsted rating – Multiverse was rated ‘outstanding’ just five years ago – the Department for Education has the authority to intervene. It is understood that the Department for Education has initiated audit and assurance work concerning Multiverse, and an Ofsted report following an inspection is anticipated in the coming weeks.
Former education minister Robin Walker expressed his concern over the completion rate figures, stating that such statistics would have prompted further investigation if he had been chair of the education committee. He indicated that the Department for Education would undoubtedly find these figures troubling.
Internal Criticisms and Shifting Priorities
Claims from former staff members suggest a variety of reasons behind the company’s declining performance. One former employee stated that as the firm expanded, its initial ethos of “getting young people off the streets into the boardroom” became increasingly difficult to maintain. This shift reportedly included a move towards engaging older workers, a departure from Multiverse’s foundational principles, a claim the company disputes.
Another former staff member described a sense of “outrage” within Multiverse when experienced teachers and individuals passionate about youth development left the company, only to be replaced by “expensive sales consultants.” These former employees also noted that as Multiverse’s priorities evolved, outreach teams dedicated to engaging with schools, colleges, and job centres were disbanded.
Furthermore, a point of concern raised by a former employee was the reliance on personal connections to the company’s founder for securing clients. This former staff member suggested that some potential clients were introduced through Euan Blair and his mother, Cherie Blair, with discussions sometimes veering towards personal matters related to his father.
The strain on company resources was also highlighted, with one former employee claiming that some teams were overstretched, citing instances of up to 40 NHS leaders being accommodated per coach for training. This aligns with concerns reportedly raised internally by a senior leader at NHS England regarding the long-term viability of certain apprenticeship training roles.
Financial Performance and Business Model Questions
Multiverse’s latest financial accounts present a concerning picture for the firm. Founded in 2016 as WhiteHat, the company has yet to achieve profitability a decade into its operation, prompting questions about the sustainability of its growth strategy. Despite a significant increase in revenue, Multiverse has incurred losses exceeding £60 million and seen a reduction in its cash reserves.
Internally, a former staff member indicated that Multiverse had become overly focused on commercial pressures and ambitious growth targets. Sales roles, in particular, were described as being heavily incentivised with commissions, leading to “big salaries and big bonus incentives.” Another former employee reported that Multiverse programmes were sometimes cut or significantly altered with minimal prior notice.
Multiverse Responds to Criticism
In response to these claims, Euan Blair, Founder and CEO of Multiverse, defended the company’s approach. He stated, “Reasonable people know the status quo in further education is intolerable: fewer apprenticeships, declining employer investment, and lower skills and productivity.” He emphasised that Multiverse has prioritised “growth and innovation, rather than providing purely traditional forms of learning.”
Blair highlighted the company’s focus on addressing the challenges and opportunities presented by AI adoption for the workforce, stating, “We’ve prioritised that above simply repeating what’s gone before.” He acknowledged that “innovation creates friction,” but asserted that their approach is yielding positive results. He pointed to “deep, trusted relationships with employers” and highlighted the achievements of their learners, citing their contributions to reducing NHS waiting lists, increasing productivity, and securing promotions and pay rises.
“These are the things we focus on above everything else,” Blair declared. He concluded by expressing pride in building “a pioneering British success story which attracts world-class colleagues who are delivering new skills to thousands of workers, helping government and industry perform with greater success and boosting the UK economy.”
