UK Plans 50,000 Extra Youth Apprenticeships in £725m Skills Reform Drive
Work News | New Stardom
Trend Analysis
Photo by Etienne Girardet
The UK government has announced a £725 million overhaul of the apprenticeship system, aiming to reverse a decade-long slide in youth participation and lift employment prospects for 16–24-year-olds. Ministers project 50,000 additional starts over the next three years, with new incentives targeted at small and medium-sized employers and at young people currently outside work or education.
The reforms land after apprenticeship starts among under-25s fell by almost 40% since 2015/16 and as close to one million young people are classified as NEET. The package, confirmed in the 2025 Budget, shifts public funding and administrative rules to favour younger learners and to channel more training through regional authorities.
A £140 million pilot will give mayors direct responsibility for connecting young people with local employers, including those offering entry-level roles in retail, hospitality, logistics, engineering and construction. The pilots are expected to launch next year, though details on allocation mechanisms and employer engagement are still pending.
One of the biggest changes removes the 5% co-investment cost currently paid by SMEs when taking on apprentices under 25. Government will now cover the full training bill, a move expected to widen access for smaller firms that previously cited cost and administration as barriers.
Short, modular courses in AI, digital, and engineering, scheduled from April 2026, will give employers additional flexibility, alongside a new Level-4 apprenticeship in AI. These sit within a broader redesign of the Growth and Skills Levy intended to shift training spend back toward younger workers.
Prime Minister Keir Starmer framed the shift as part of the Youth Guarantee and his goal for two-thirds of young people to enter higher-level learning, whether degrees, technical education or apprenticeships.
Employer groups have broadly welcomed reduced costs and greater flexibility but continue to press for clarity on standards, levy rules and local authority involvement. Construction and engineering bodies called the measures “significant” given persistent skill shortages, while hospitality groups emphasised the importance of a defined entry route for younger workers.
Concerns remain about adults over 25 who fall outside the youth-focused reforms, and about whether short courses dilute apprenticeship standards, an issue raised by opposition parties and some large employers. Ministers insist further consultation on levy rules is planned, with DWP and Skills England expected to negotiate implementation details with businesses in early 2026.
The reforms sit alongside an £820 million plan announced earlier this year to expand work experience and guaranteed job placements for long-term unemployed young people.
Follow global work and job trends. Subscribe to New Stardom’s newsletter.
This work is funded directly by readers who value independent reporting.
If you find this useful, you can support New Stardom’s independent journalism.
Read Next
Have insights on work and the future of work? Submit an opinion piece to New Stardom. Love work and career books? Explore our fun workplace book collection.
New Stardom is an independent magazine covering the Future of Work, AI, and emerging job trends.
