Apprenticeships bursary is a bonus for skills development, but let's do more to help with hiring costs, says REC

Responding to this afternoon’s announcement by the DWP on bursary support and National Insurance relief, Shazia Ejaz, Recruitment and Employment Confederation (REC) Director of Campaigns, said:

“The government’s focus on improving opportunities for young people and strengthening the skills pipeline will encourage businesses. Our JobsOutlook survey, published today, shows employers still want to recruit even as confidence in the economy weakens. Measures that help more young people gain skills and enter the workforce can support hiring now, but the government must also restore business confidence if it wants to unlock stronger jobs growth.

“The new bursary removes a significant barrier that can prevent young people from taking up apprenticeships. That should help more people gain the skills employers need at a time when labour and skills shortages continue to hold back growth. It will begin to refill the talent pool with young people who have the skills and confidence to succeed in the workplace. It also makes it easier for the private sector to hire, invest, drive productivity and innovate. As part of this increased provision, a key component of attracting people to apprenticeship programmes will be allowing access to shorter modular courses to suit the demands of a flexible labour market. Not everyone can or wants to do a year-long apprenticeship.

“National Insurance (NICs) relief for apprentices under 25 reduces the cost of hiring young workers. That will make a difference, but it is not a game changer. To make a real difference on lowering employer costs the NICs relief should be extended to all workers under 25 and reversing the lowering of the threshold for NICs contributions would give the jobs market a significant boost and encourage employers to recruit and invest in young talent.”

Notes to editors

1.     JobsOutlook: Employer survey shows new-look government must turn economic doubters into believers to jump-start the job market, says REC, 28 July 2026

Today’s data shows employers are yet to shake off their caution about the economic outlook in a year marked by political uncertainty at home and the unpredictable conflict in the Gulf. The data points to a widening gap between business confidence and recruitment intentions, suggesting there is scope for stronger jobs growth if the government can inspire more confidence in the economic outlook.

2.     Overcoming shortages - How to create a sustainable labour market, REC

In this report, we show exactly how much damage could be done if we do not step up. We could see a fall in expected GDP and productivity – costing the economy anywhere between £30 billion and £39 billion every year. This figure is just short of the entire current defence budget, or two whole Elizabeth Lines.