Government Unveils Plan for 50,000 New Apprenticeships to Tackle Youth Unemployment
The government has announced a major push to increase apprenticeship opportunities, saying up to 50,000 young people are expected to benefit from a new skills package aimed at reversing rising youth unemployment.
The £725 million initiative, funded through allocations set out in the Budget and spread across three years, will support the creation of apprenticeships in fields such as artificial intelligence, hospitality and engineering. Under the plan, apprenticeships for under-25s at small and medium-sized firms will be fully funded, removing the 5% contribution those employers currently cover.
Ministers say the move is intended to counter a long-term decline in the number of young people starting apprenticeships, which has fallen by nearly 40% over the past decade.
The package also includes £140 million for a pilot programme that will allow local mayors to help connect young people with employers. The Department for Work and Pensions has not yet outlined how the funds will be deployed, but expects the scheme to improve access to apprenticeship and training opportunities in key regions.
From next spring, the government will also introduce short technical courses in areas including AI, digital skills and engineering, developed in partnership with the defence sector.
Prime Minister Sir Keir Starmer, who is expected to speak publicly about the initiative on Monday, has previously argued that apprenticeships should be held in the same regard as university degrees. He has said that limiting success to university attendance has “held back opportunity and created barriers we need to break”.
Rising numbers of young people classified as Neets – 16 to 24-year-olds not in education, employment or training – have added urgency to the government’s plans. Nearly one million young people now fall into that category, according to the latest figures.
Work and Pensions Secretary Pat McFadden told the BBC that young people had “not had a good enough deal” on work and housing for several years. He also highlighted plans to move more young people off Universal Credit and into employment, supported by a separate £820 million investment.
As part of that effort, 55,000 six-month work placements will launch next April for those who have been claiming benefits for at least 18 months. The placements will be rolled out in six areas with high youth unemployment, offering 25 hours a week at the legal minimum wage and additional funding for training and job support. The government says roles will be created in sectors such as construction, health and social care and hospitality.
In total, ministers expect the programme to deliver around 350,000 training and work-experience placements.
Responding to the announcement, Conservative spokesperson Helen Whately criticised the scheme, saying it showed the government had “no plan for growth, no plan to create real jobs.”
