Not everyone is capable of sitting through a degree course. They may however excel at a vocational skill. Ditto others may be capable of sitting a degree but would rather crack on with something else. A trade, NVQ or maybe a HND. You can always do a degree at some point later in your career if your want to reach the next level in some jobs.
Labour insisting as many go to university as possible isn't really encouraging. That hasn't helped the situation in the USA where even moderate jobs look for a degree. You've got a lot of talented people unable to fulfil their potential in bigger companies because they can't pass the HR firewall.
I for one don't do well in written coursework, however (even though I work in engineering which is very heavily reliant on those with a degree) I've managed to thrive and progress my career with having a degree.
I suspect in part as over only ever worked in smaller companies where it's easier to prove myself rather than needing a piece of paper from several years ago that shows then I could do something (but may have zero relevance on the tasks I currently undertake).
That said I can understand the point of degrees as it should allow you to take a taught concept and apply it to a given situation.
Likewise it is possible to have taken me longer to get to the same point in my career than if I had a degree, however there's no certainly in that.
As such there's certainly a need to have both routes available (degree and work based learning), if anything given that having the option of work based learning is essential for those with degrees anyway, then why not have it open to anyone who is capable?