Government Unveils Major Apprenticeship Expansion to Tackle Youth Unemployment
Transforming Skills Training Across the UK
The UK Government has announced a landmark £725 million investment package designed to deliver more apprenticeships for young people, marking one of the most significant reforms to skills training in recent years. The reforms aim to help tackle youth unemployment and drive economic growth, with thousands more young people expected to benefit over the next three years.
This initiative comes at a critical time, as the number of young people starting apprenticeships has fallen by almost 40% over the last decade. The Government’s comprehensive approach addresses both the supply and demand sides of apprenticeship provision, creating pathways for 50,000 additional young people whilst supporting employers to take them on.
Key Reforms and Funding Provisions
A cornerstone of the reform package removes significant barriers for small and medium-sized enterprises. The government will cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses, removing the 5% co-investment rate for SMEs. This change means training costs are fully funded, making it considerably easier for smaller businesses to hire apprentices.
Additionally, a £140 million pilot programme will enable Mayors to connect young people—especially those not in education, employment or training—with thousands of apprenticeship opportunities at local employers. This regional approach recognises that local leaders best understand their economies and can ensure young people access training that meets employer needs in their area.
Sectors and Opportunities
The funding will create 350,000 new workplace or training opportunities in sectors such as construction, health and social care and hospitality. Furthermore, foundation apprenticeships are being introduced from August 2025 to give young people new routes into good jobs, helping them learn job skills and develop confidence.
For those interested in emerging industries, a suite of shorter technical courses will begin from April 2026, covering areas including AI, digital skills and engineering, alongside a new Level 4 apprenticeship in AI.
Significance for Young People and Employers
These reforms represent a fundamental shift in how apprenticeships are viewed and accessed. Prime Minister Keir Starmer emphasised that for too long, success has been measured by university attendance, and that narrow view has held back opportunity and created barriers. The reforms aim to restore apprenticeships as respected, mainstream routes into high-quality careers.
For young people seeking opportunities, applications can be made through the official government portal at gov.uk/apply-apprenticeship, with new programmes being added as funding is released. The government’s investment signals a long-term commitment to ensuring that vocational training receives equal status and support alongside traditional academic routes, offering genuine alternatives for career development across multiple sectors.