UK government plans to use its £3 billion apprenticeship budget to create 120,000 new training opportunities for young people “to rebuild Britain” have been broadly welcomed.
However, the CIPD said the plans need to be “more ambitious” and include a financially incentivised apprenticeship guarantee to genuinely expand opportunities for young people.
Education secretary Bridget Phillipson said a skilled workforce is the key to steering the economy forward, adding: “We’re backing the next generation by giving young people more opportunities to learn a trade, earn a wage and achieve and thrive.”
She said: “When we invest in skills for young people, we invest in a shared, stronger economic future – creating opportunities as part of our Plan for Change.”
Under the plans, the government is increasing the Immigration Skills Charge by 32 percent, which ministers said will create up to 45,000 additional training places. These will be used to upskill the domestic workforce and reduce reliance on migration in priority sectors. These changes were announced in the recent Immigration white paper, which prompted concerns about the impact on recruitment in the adult social care sector.
Funding for higher level apprenticeships, such as level 7 (masters-level), will be reduced from January 2026 to free up money for more training at lower levels. However, support for higher level apprenticeships will continue for people aged 16 to 21 and existing apprentices.
The government will launch 13 new level 2 construction courses for adults in non-devolved areas under the Free Courses for Jobs scheme.
Lizzie Crowley, senior skills adviser at the CIPD, said the unveiling of 120,000 new training opportunities for young people was clear recognition of the urgent need to address persistently high levels of youth unemployment, economic inactivity, and technical skills shortages.
But she said: “A more ambitious approach is needed to genuinely expand opportunities and rebalance the system in favour of young people, including an apprenticeship guarantee for all 16-24 years olds.
“The decision to restrict government funding for all Level 7 apprenticeships to those aged 16 to 21 is unlikely to meaningfully boost youth participation given that fewer than one in 10 apprentices who train at this level fall within this age bracket. While the aim of rebalancing the system towards young people is important, this blunt approach risks undermining the breadth and ambition of the apprenticeship offer. We have previously argued for a more nuanced approach to managing the cost of delivering higher-level apprenticeships, for instance via reduced subsidies for older apprentices.”
Commenting on the new foundation apprenticeships for people aged 16 to 21, expected to launch this August after the minimum duration of apprenticeships was reduced from 12 months to eight, Crowley said: “Expanding opportunities is vital but shortening programmes risks damaging the reputation and long-term credibility of apprenticeships.
“England already offers some of the shortest apprenticeships internationally, in contrast to the two-year norm in many countries.”
She said: “To genuinely increase apprenticeship opportunities for young people, we are calling for an apprenticeship guarantee for all 16- to 24-year-olds, supported by enhanced financial incentives for SMEs. Our research shows overwhelming employer support for this – 89 percent back such a guarantee, and 60 percent say they could offer an additional apprenticeship for someone in this age group under this model.”
