The government has said it will deliver 50,000 new apprenticeships over next three years, as part of efforts to tackle youth unemployment.
With apprenticeship starts among young people falling by around 40% since 2015/16 and almost a million 16-24-year-olds not in education, work or training (NEETs), the action will be funded by £725 million announced by chancellor Rache Reeves in the 2025 Budget.
The 5% levy that SMEs currently need to pay will be removed which means training costs for all eligible under 25 apprentices will be fully funded, and there will be new short courses in areas including AI, engineering and digital skills from April 2026.
There will also be a £140 million pilot through which Mayors will be able to connect young people, especially NEETs, with apprenticeship opportunities at local employers, and there are plans for foundation apprenticeships in sectors such as hospitality and retail.
Prime minister Keir Starmer announced the new apprenticeship reforms during a visit to car manufacturer McLaren, the day after its driver, Lando Norris, won the Formula 1 world champion title. He 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.”
The government said the Department for Work and Pensions and Skills England will work with businesses on “the right balance to further boost apprenticeship starts for young people while delivering the right flexibilities for business”.