In a major push to tackle rising youth unemployment, the government is set to announce a significant investment to create tens of thousands of new apprenticeship places. The initiative, to be unveiled by the Prime Minister on Monday, aims to reverse a decade-long decline in vocational training starts.
A £725 Million Investment in Future Skills
Sir Keir Starmer will confirm a £725 million funding package designed to create 50,000 new apprenticeships for young people over the next three years. The investment will target key growth sectors including artificial intelligence (AI), engineering, and hospitality.
The Prime Minister has expressed a firm desire to see apprenticeships treated with the same level of respect as traditional academic degree courses. He is expected to argue that a narrow focus on university attendance has limited opportunity for many.
"For too long, success has been measured by how many young people go to university," Sir Keir stated previously. "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."
Addressing the NEET Crisis and Sector Gaps
A core component of the new strategy is tackling the growing number of young people classified as NEET – not in education, employment, or training. Experts warn the figure is on course to exceed one million for the first time since the aftermath of the 2008 financial crisis.
To address this, £140 million of the total funding will be allocated to regional mayors. Their task will be to directly connect NEET young people with local apprenticeship opportunities. Separately, Work and Pensions Secretary Pat McFadden announced an additional £820 million investment focused on the NEET problem, featuring more training and guaranteed jobs for the long-term unemployed.
"This funding is a downpayment on young people’s futures and the future of the country," Mr McFadden said, "creating real pathways into good jobs and providing work experience, skills training and guaranteed employment."
Boosting SME Uptake and Industry Links
The government plan includes a commitment to fully fund apprenticeships at small and medium-sized businesses (SMEs), removing a key financial barrier for smaller employers. This move is intended to stimulate apprenticeship creation across the economy.
Sir Keir will mark the announcement with a visit to the McLaren Technology Centre near Woking, Surrey, on Monday. He will meet apprentices at the Formula 1 team, which currently employs 84 people through its early careers scheme and is working to develop more apprenticeship roles. The visit follows McLaren driver Lando Norris's championship win on Sunday, highlighting the link between high-tech engineering and vocational training.
The announcement forms part of a broader national youth strategy, which the government is expected to detail this week. Ministers have acknowledged that young people have "not had a good enough deal" in recent years, particularly in areas like housing and employment, and insist this investment marks a turning point.
