UK Plans Apprenticeship Funding Shift to Combat Youth Job Crisis
The British government plans to require employers to co-invest in apprentices over 25 to incentivize hiring young people and reverse a decade-long decline in starts.
The Government of the United Kingdom is planning an overhaul of the apprenticeship funding system in England to address a youth jobs crisis. The proposal aims to reverse a 40% decline in apprenticeship starts among young people over the last decade, as the number of youth not in education, employment, or training has risen to nearly 1 million.
Under the proposed changes to the 4 billion pound annual growth and skills levy, the government would introduce a co-investment rule. While training for apprentices aged 16 to 24 would remain fully funded, the government would cover only 75% of costs for workers over 25, requiring employers to pay the remaining 25%. This shift, potentially launching in September 2027, is designed to incentivize the hiring of younger workers over older candidates.
The initiative follows a review by Alan Milburn and coincides with preparations by Chancellor John Healey for a tax and spending statement focused on youth unemployment. The Department for Work and Pensions has expressed determination to address the decline in starts and provide young people with necessary skills.
