Waste of time and money.
The vast majority of players in L1 and L2 including the Championship for the most part (though that's heading the way of the Premiership) are British, with a large proportion of them being English.
The issue is, they get played, scouted by a Chelsea or Man City etc etc, have their heads turned by cash being flashed in their faces before they've even had proper game time to develop.
What normal 16-20 year old on £300 a week would turn down the opportunity to make that thousands per week and all that it entails?
Before you know it, a promising young English player is playing 8th fiddle to a Foreign player and there the competitive game time development stops.
The issue then arises whereby they think they're then too good to be loaned out to the likes of a "lowly league one club" because they wear a Man City tracksuit.
It isn't the EFL that needs to tackle the issue of young English player development. It is the EPL but that will never happen as too many people make too much money and they wouldn't want to jeopardise their nests by forcing quotas on EPL clubs as to how many English players they must play (actually start the match, not just be a part of the match day squad!)