- Major £725 million investment to deliver more apprenticeships
for young people and help match skills training with local job
opportunities
- Young people to benefit from increased access to training
with full cost of apprenticeships at SME's covered by
Government
- New wave of foundation apprenticeships in sectors such as
retail and hospitality sectors to get young people into
work
- Backing thousands more apprenticeship starts for young people
through a £140 million partnership with local leaders
50,000 young people across the country will be better equipped
for jobs of the future through a major investment to create more
apprenticeships and training courses.
The £725 million package of reforms to the apprenticeship system
will help to tackle youth unemployment and drive economic growth,
with thousands more young people expected to benefit over the
next three years.
The latest funding includes a £140 million for a pilot where
Mayors will be able to connect young people - especially those
not in education, employment or training (NEET) with thousands of
apprenticeship opportunities at local employers.
By partnering with regional leaders who best understand their
local economies, these pilots will ensure young people can access
training that meets the needs of employers in their area.
As part of the package, the government will also cover the full
cost of apprenticeships for eligible young people under 25 at
small and medium-sized businesses.
Removing the 5% co-investment rate for SME's means that the
training costs for all eligible under 25 apprentices are fully
funded opening up thousands of opportunities for young people.
This will make it easier for young people to find opportunities
and remove the burden from businesses, making it easier for them
to take on young talent.
Businesses will also benefit from a major boost in flexibility as
new short courses in cutting-edge areas including AI, engineering
and digital skills will begin rolling out from April 2026.
This includes working closely with the defence sector to develop
a new suite of flexible, work-based training options to help
employers upskill their existing workforce in the critical skills
needed for future success.
Today's announcement comes alongside plans to open up new waves
of foundation apprenticeships in sectors such as hospitality and
retail.
The reforms will simplify and modernise the apprenticeship
system, making it more efficient and responsive to the needs of
employers and learners. From April 2026, short
courses will be introduced to provide more flexible training
options and a new Level 4 apprenticeship in AI will also be
introduced, supporting employers to develop the skills of their
workforce.
The reforms to the Growth and Skills Levy build on the Prime
Minister's ambition for two-thirds of young people to participate
in higher level learners – academic, technical or apprenticeships
- helping more young people gain the skills they need to start
their careers.
Prime Minister said:
For too long, success has been measured by how many young
people go to university. That narrow view has held back
opportunity and created barriers we need to break.
If you choose an apprenticeship, you should have the same
respect and opportunity as everyone else. That's why the
Government is investing £1.5 billion through the Youth Guarantee
and the Growth and Skills Levy - creating 50,000 more
apprenticeships and foundation apprenticeships for young people
over the next three years.
“It's time to change the way apprenticeships are viewed and
to put them on an equal footing with university. This is a
defining cause for this government and a key step towards our
ambition to get two-thirds of young people in higher-level
learning or apprenticeships.”
Work and Pensions Secretary said:
"Every young person deserves a fair chance to succeed. When
given the right support and opportunities, they will grasp
them.
"That's why we are introducing a range of reforms to help
young people take that vital step into the workplace or training
and to go on and make something of their
lives.
"This funding is a downpayment on young people's futures and
the future of the country, creating real pathways into good jobs
and providing work experience, skills training and guaranteed
employment.”
The reforms are designed to tackle the sharp decline in
apprenticeship starts among young people over the last decade –
which have fallen by almost 40% since 2015/16 and shift the focus
towards supporting young people into high-quality training and
employment.
This latest intervention follows an £820 million investment
guaranteeing every young person the chance to gain the skills
they need for success and support to find a job. This package
will create 300,000 more opportunities to earn and learn and
provide guaranteed jobs to almost 55,000 young
people.
Over the coming months, DWP and Skills England will work
intensively with business on the right balance to further boost
apprenticeship starts for young people while delivering the right
flexibilities for business.
Skills England will also drive forward a renewed Skills Inward
Investment and Infrastructure offer for business, co-created with
the Office for Investment. This will involve meeting investors to
guide them through the UK skills system and potential funding
streams to get training for jobs off the ground as quickly as
possible and support young people in their careers.
