Seven new apprenticeship units will be launched, including AI leadership, electric vehicle charging installation, electrical and mechanical fitting, modular building assembly, solar PV installation, and welding.
Foundation apprenticeships will expand into hospitality and retail from April 2026.
Prime Minister Sir Keir Starmer, said: “Backing young people is one of the most important investments we can make in this country’s future.
“We are determined to tackle the rise in youth unemployment by expanding practical routes into work, boosting apprenticeships, and giving employers the clarity they need.
“These reforms underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment.”
McFadden said: “These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.
“We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.
“These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”
REACTION:
John Boumphrey, UK country manager at Amazon:
“Amazon welcomes the expansion to the Youth Guarantee and increased investment in youth employment – this enhanced support will help more people who face barriers to work.
“We’re also pleased to see the focus on apprenticeships and SMEs, and look forward to continuing our partnership with DWP to provide opportunities for young people across the UK.”
Sharon Doherty, chief people and places officer of Lloyds Banking Group:
“We welcome today’s announcement and the government’s continued focus on youth employment and skills.
“Supporting young people into work requires partnership between government, employers and education providers.
“At Lloyds Banking Group, we’ve long supported apprenticeships, early career routes and building essential skills in young people to enable them to develop successful careers, and we look forward to continuing to engage as these proposals are taken forward.”
Brian Dow, chief executive of Mental Health UK:
“Many young people want to experience the positive impact on their mental health that secure employment provides, but have faced significant challenges finding work.
“Through our work with young people, we have also found that many feel they do not have the right skills or training to enter employment.
“We warmly welcome this announcement, which will support young people to be ready for work and help organisations large and small to capitalise on the skills, talents and enthusiasm that young people have to offer.”
Jonathan Townsend, chief executive of youth charity The King’s Trust:
“With rising numbers of young people out of work, the expansion of the Youth Guarantee has come at a pivotal moment.
“Investing in young people, developing their confidence and skills for work will help to build secure and fulfilling futures.
“This is essential not only for them, but for the UK’s economic success.
“At The King’s Trust, we witness extraordinary potential in young people every day and stand ready to ensure these opportunities reach those who need it most.”
Andy Burnham, Mayor of Greater Manchester:
“This is a bold and much-needed package of reforms from Pat McFadden.
“It will significantly strengthen Greater Manchester’s mission to build a world-class modern technical education system, offering all our young people an equal alternative to the traditional university route.
“We are the UK’s fastest-growing city-region and now have the chance to build new paths for our young people into good jobs.
“We have long called for greater flexibility in the use of the Growth and Skills Levy and know our employers will welcome these changes.”
Ruth Busby, people director at Govia Thameslink Railway:
“Govia Thameslink Railway has a long track record of championing award-winning apprenticeships and schemes to support disadvantaged young people into employment.
“The expansion of the Youth Guarantee provides us with a further opportunity to help young people train, grow and take their first steps into long term careers.
“With new foundation apprenticeships and wider support coming through, we have a real chance to bring more young people into rail, develop the next generation of talent, and strengthen the skills base our industry relies on.”
Allen Simpson, chief executive of UKHospitality:
“Hospitality is a proven pathway into work for young people, regardless of their education, qualifications or background.
“The inclusion of hospitality in new foundation apprenticeships is recognition of that and I’m pleased that our sector will continue to play a central role in providing opportunities for young people.”
Peter Cheese, chief executive of the CIPD:
“The CIPD welcomes these initiatives, encouraging businesses to take on more young people, promoting apprenticeships and greater flexibility for the Growth and Skills Levy.
“These measures are a positive move towards tackling youth unemployment and creating more pathways into entry-level jobs.”
