The UK government is considering a proposal to increase apprenticeship funding costs for workers over age 25 by 25 percent, according to reporting on plans being developed ahead of the budget announcement. The measure is intended to incentivize businesses to prioritize training younger people as part of efforts to address youth joblessness, particularly targeting the approximately 1 million individuals aged 16 to 24 not currently in education, employment, or training.
Under the proposal, employers would be able to use levy funds to fully cover apprenticeship costs for workers under 25, but would face a co-investment requirement for older workers where levy funds cover only 75 percent of costs. Business leaders have expressed concern that the approach will simply redistribute existing training opportunities rather than create new ones. Robert Halfon of Make UK emphasized that the apprenticeship system is already struggling and that growing the overall number of apprenticeships would be more effective than restricting training elsewhere. Industry representatives argued the government should instead reduce broader business costs to encourage youth hiring.
The proposal comes as part of a broader government response to recommendations from a review of youth unemployment. Officials have identified reversing a 40 percent decline in youth apprenticeship starts as a priority, with over-25s currently accounting for more than half of new apprenticeship enrollments. However, business groups including the CBI and British Chambers of Commerce cautioned against sudden changes that could damage employer participation and emphasized that adult training serves important functions including opening entry-level opportunities and helping workers adapt to workplace changes.
Government representatives stated the administration remains focused on reversing youth apprenticeship declines and has committed £3.3bn to deliver 50,000 additional apprenticeships for young people. Officials noted that a formal review is due in the autumn and declined to advance conclusions before those findings are released.
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