Government unveils 725m package to create 50,000 apprenticeships and tackle rising youth unemployment

"The government has announced a £725 million overhaul of the apprenticeship system, setting out plans to create 50,000 new placements over the next three years in an effort to address rising youth unemployment and strengthen the UK's long-term economic prospects. The reforms include a £140 million mayoral pilot programme giving regional leaders new powers to connect young people - particularly those not in education, employment or training (NEET) - with apprenticeship opportunities at local employers. Ministers say the changes will open thousands of new routes into skilled work across the country, with a sharper focus on aligning training with local labour market demand."

"A central pillar of the reforms is a commitment to cover the full cost of apprenticeships for eligible under-25s at small and medium-sized businesses - a move aimed at removing the financial barriers that have discouraged thousands of SMEs from hiring apprentices. The government will also launch new foundation apprenticeships in industries such as hospitality and retail, intended to help young people enter the workforce more quickly. Expansion plans for growth sectors - including digital, engineering, health and advanced manufacturing - are expected to create clearer pathways into roles experiencing chronic skills shortages."

"Sheila Flavell CBE, COO of FDM Group, called the investment a "crucial step" in preparing young people for a job market undergoing rapid transformation. "As AI adoption accelerates across every sector, the demand for digital and technical skills is rising sharply," she said. "Our research shows that more than half of organisations now expect AI capabilities in all early-career roles, yet only 6% feel their teams are equipped with these skills.""

The government will invest £725 million to overhaul the apprenticeship system and create 50,000 placements over three years to tackle youth unemployment and boost long-term economic prospects. A £140 million mayoral pilot will give regional leaders powers to link NEET young people with local employers and better align training to regional labour demand. The reforms will cover full apprenticeship costs for eligible under-25s at SMEs to remove hiring barriers and introduce foundation apprenticeships in sectors like hospitality and retail. Expansion in digital, engineering, health and advanced manufacturing aims to address chronic skills shortages. Industry leaders stress urgent need for AI and digital skills in early careers.

Read at Business Matters