Government announces plans to create 50,000 new apprenticeships

The Government have announced plans to create 50,000 new apprenticeships for young people over the next three years.  

The decision to fully fund apprenticeships at SMEs for under-25s is likely to make taking on a young person more viable for many employers. However further detail is needed on how this funding will operate in practice and how it will align with existing training support for businesses.  

The planned introduction of flexible short courses in AI, engineering and digital skills from April 2026 is intended to support growth in priority sectors and is consistent with themes in the Government’s post-16 education and skills white paper. Demand for AI skills continues to grow both for those developing new technologies and for those applying them in the workplace. However, as employers have repeatedly told government, training provision must meet the full range of labour market needs. Apprenticeships are not suitable for every role, and temporary and flexible workers in particular need access to high quality, adaptable training routes that support skills development across sectors. 

The REC’s latest Recruitment Industry Status Report, published today, shows strong demand for engineering, education, nursing and clerical roles, with temporary work remaining a critical part of the labour market.  

Continued cooperation between government and business on skills policy remains essential. Any new measures must work for employers as well as for government objectives and be grounded in the realities of the labour market. 

The pilot to devolve apprenticeship matching funding to Mayors has the potential to strengthen how young people are connected with local employers. Local areas often have a detailed understanding of employer needs and the relationships required for effective matching. Further detail, including on which regions the scheme is being introduced in, will be important to understand how the pilot will function in practice. 

Alongside the Youth Guarantee and recent changes to the Growth and Skills Levy, this package of measures aims to support more young people to enter and remain in work. The Youth Guarantee’s eligibility criteria remain complex, as it applies only to people aged 18 to 21 who have received Universal Credit without working or studying for 18 months. These risks excluding individuals who could benefit, including those just outside the age range or with recent part time work. 

Further simplification of the complexities of the apprenticeship funding system is needed. To support growth, skills policy must work for both employers and employees and be grounded in the needs of the labour market. Recruiters are in daily contact with employers and candidates and understand the factors that influence people to start and stay in jobs. Their insights will be essential in ensuring that new skills measures deliver for businesses and workers alike.