UK government introduces reforms to apprenticeship system

The UK government has announced a 725 million pound reform package for the apprenticeship system as it looks to address youth unemployment and push for economic growth.

Among the initiatives to be carried out under the Growth and Skills Levy will be a 140 million pound pilot programme in which regional Mayors can connect young people, specifically those not in education, employment or training, with apprenticeship opportunities at local employers.

The government said it would also cover the costs of apprenticeships for eligible young people under 25 at small and medium-sized enterprises, removing the 5 percent co-investment rate. Doing so would open up "thousands of opportunities”, a press release said, making it easier for young people and removing the burden from businesses.

Furthermore, new short courses and education programmes will also roll out from April 2026, including work-based training options within the defence sector to help employers upskill their workforce.

The reforms intend to simplify and modernise the current system, building on Prime Minister Keir Starmer’s mission for two-thirds of young people to participate in higher level learning or apprenticeships.

Speaking on the changes, Starmer said: “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.

“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 pounds 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”