In a significant move to tackle record levels of youth unemployment, the Government is launching a multi-million pound initiative to dramatically improve young people's access to apprenticeships, particularly in shops and restaurants.
Major Funding Injection for Youth Opportunities
Prime Minister Keir Starmer will announce the £725 million package on Monday, designed to help 50,000 young people secure apprenticeship positions. The core of the plan involves the Government fully funding apprenticeships for under-25s within small and medium-sized enterprises (SMEs), removing a key financial barrier for businesses.
This initiative marks a clear attempt to reverse a concerning decade-long trend. Over the past ten years, the number of young people starting apprenticeships has fallen by almost 40%. The new strategy represents a direct intervention to stem this decline and create tangible pathways into work.
Local Pilots and New Sector Focus
A substantial £140 million portion of the funding will be allocated to a pilot scheme empowering local mayors. Their role will be to directly connect young people—with a special focus on those not in education, employment, or training (NEET)—with thousands of apprenticeship opportunities offered by employers in their area.
The drive will also support a new wave of foundation apprenticeships in the retail and hospitality sectors, areas that traditionally employ large numbers of young people but have seen lower apprenticeship uptake. Furthermore, from April 2026, new short courses in cutting-edge fields like artificial intelligence (AI), engineering, and digital skills will begin rolling out, aligning training with future economic needs.
Elevating Apprenticeships to Degree Level
Speaking on the policy, Prime Minister Starmer criticised the long-standing overemphasis on university as the sole marker of success. "For too long, success has been measured by how many young people go to university," he stated. "That narrow view has held back opportunity and created barriers we need to break. It’s time to change the way apprenticeships are viewed and to put them on an equal footing with university."
The announcement follows closely on the heels of another related government initiative: an £820 million package to assist young people on Universal Credit into jobs. That funding provides training and work experience in construction, hospitality, and health and social care for up to 350,000 young people.
Commenting on the broader strategy, DWP Secretary Pat McFadden described the funding as "a downpayment on young people's futures and the future of the country." He emphasised it would create "real pathways into good jobs" through guaranteed work experience, skills training, and employment.
The Government is also expected to outline its comprehensive national youth strategy later this week, signalling a sustained focus on improving prospects for the younger generation in areas from housing to employment.
