Business

Starmer pushes to put apprenticeships on par with university

Ryan Brothwell 2 min read
Starmer pushes to put apprenticeships on par with university

The government has announced a £725 million package of reforms to the apprenticeship system, aimed at helping to tackle youth unemployment and drive economic growth.

able to connect young people – especially those not in education, employment or training (NEET) with thousands of apprenticeship opportunities at local employers.

By partnering with regional leaders who best understand their local economies, these pilots will ensure young people can access training that meets the needs of employers in their area.

As part of the package, the government will also 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 SME’s means that the training costs for all eligible under 25 apprentices are fully funded opening up thousands of opportunities for young people. This will make it easier for young people to find opportunities and remove the burden from businesses, making it easier for them to take on young talent.

Businesses will also benefit from a major boost in flexibility as new short courses in cutting-edge areas including AI, engineering and digital skills will begin rolling out from April 2026.

This includes working closely with the defence sector to develop a new suite of flexible, work-based training options to help employers upskill their existing workforce in the critical skills needed for future success.

“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,” said Prime Minister Keir Starmer.

“If you choose an apprenticeship, you should have the same respect and opportunity as everyone else. That’s why the Government is investing £1.5 billion 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.”

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