Ryan FowlerThe Government has announced a £725m reform package to expand apprenticeships and skills training, with ministers expecting 50,000 more young people to benefit over the next three years.
The measures are intended to tackle youth unemployment and better align training with local labour market needs.
The Department for Work and Pensions said the investment will help match young people to opportunities in sectors where employers are struggling to recruit.
A £140m pilot scheme will give Mayors the ability to connect young people, including those not in education, employment or training, with apprenticeship openings at local employers.
By drawing on regional knowledge, the Government said the pilots aim to deliver training that reflects real demand in local economies.
The reforms also remove the 5% co-investment requirement for small and medium-sized businesses, meaning the Government will now cover the full cost of apprenticeships for eligible under-25s at SMEs.
New foundation apprenticeships are being rolled out in sectors such as retail and hospitality to widen access to entry-level training.
From April 2026, a suite of shorter technical courses will begin, covering areas including AI, digital skills and engineering, alongside a new Level 4 apprenticeship in AI.
The Government is also working with the defence sector to design flexible work-based training to help employers upskill existing staff.
Prime Minister Keir Starmer 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 £1.5bn 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 Pat McFadden 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 follow a decade-long decline in apprenticeship starts among young people, which have fallen by almost 40% since 2015 to 2016.
The Government said the package is part of a wider shift to prioritise high-quality training routes, building on earlier investment that guaranteed skills support and job opportunities for young people.
DWP and Skills England will continue working with businesses in the coming months to identify additional flexibilities to support a further increase in apprenticeship starts.
