Apprentice Reforms to Benefit 50,000 Young People Government Says – with Industry Response

A £725 million package of reforms to the apprenticeship system will help to tackle youth unemployment over the next three years, Government says.

The funding will create more apprenticeships and help match skills training with local job opportunities.

The latest funding includes a £140 million for a pilot where city mayors will be able to connect young people – especially those not in education, employment or training (NEET) with apprenticeship opportunities at local employers.

As part of the package, the government will also cover the full cost of apprenticeships for eligible under 25s at small and medium-sized businesses (SMEs).

Apprentice Reforms

From April 2026, new short courses in emerging technology, including AI, engineering and digital skills will begin rolling out.

A new Level 4 apprenticeship in AI will also be introduced, supporting employers to develop the skills of their workforce.

In the defence sector, a new suite of flexible, work-based training options for upskilling existing workers in critical skills will begin.

Foundation apprenticeships in sectors such as hospitality and retail will also start.

The reforms to the Growth and Skills Levy build on the Prime Minister’s ambition for two-thirds of young people to participate in higher academic, technical or apprenticeship learning.

Prime Minister Keir Starmer said: “For too long, success has been measured by how many young people go to university. If you choose an apprenticeship, you should have the same respect and opportunity as everyone else. That’s why the Government is investing £1.5 billion through the Youth Guarantee and the Growth and Skills Levy – creating 50,000 more apprenticeships and foundation apprenticeships for young people over the next three years.”

The reforms are designed to tackle the almost 40% fall in apprenticeship starts over the last decade.

INDUSTRY RESPONSE

Building Capability

Dr David Crosthwaite, BCIS Chief Economist

Dr David Crosthwaite, BCIS Chief Economist, said: “There is a risk that schemes built around compliance or sanctions place young people into roles that do not align with their skills, interests or longer-term aspirations.

“For construction, which already faces persistent challenges attracting and retaining new entrants, the priority should be creating conditions that make the sector a positive and deliberate career choice rather than a default option.

“There is also the practical concern of placing inexperienced young people on potentially dangerous work sites without adequate training.

“Fundamentally, the industry is suffering from a skills shortage rather than a shortage of general labour, so the focus should be on building capability, not just filling labourer vacancies.

“At the same time, there could be clear benefits for employers.

“Many construction firms have stopped replacing workers or paused plans to grow their teams because of cost pressures and uncertainty in the market.

“If government programmes provide meaningful support with hiring and training costs, this could help firms take on young people they might otherwise be unable to afford to recruit or develop.

“That could strengthen early-career pipelines at a time when workforce capacity is one of the biggest constraints on delivery.”

Important Step

Roger Morton, Director of Business Change at NHBC

Roger Morton, Director of Business Change at the National House Building Council (NHBC) said: “Today’s commitment from the Prime Minister to create 50,000 new apprenticeship opportunities is an important step in tackling youth unemployment and supporting sectors vital to the UK’s economic future, not least construction.

“At NHBC, we say it is all about “Skill, baby, skill” if we are to ensure we have the workforce needed to build 1.5 million homes and achieve the government’s ambition to “Build, baby, build!” The supply of skilled workers will ultimately determine whether the country can meet its housing targets.

“Enabling builders and subcontractors of all sizes to feel confident in taking on apprentices is critical to meeting housing targets. Right now, cost, time and uncertainty about future work may be holding them back. That is why it is encouraging to see the government expanding support for young people through today’s announcement, along with the Budget commitment by Chancellor Rachel Reeves to make training for under 25 apprenticeships completely free for small and medium sized enterprises.

Training the Next Generation

“This support is timely. The construction sector needs a rapid increase of new talent and apprenticeships remain one of the most effective routes into long-term, high-quality careers.

“NHBC is playing its part with its £100 million investment to train 3,000 new apprentices every year and the creation of 12 new multi skill training hubs across the UK. These hubs use an intensive training model that enables apprentices to complete their training in just 14 to 18 months. This gives young people realistic, hands-on experience and gives employers confidence that apprentices are site ready from day one.

“Our expanding national network includes our multi skill training hubs in Lichfield and Northstowe, Cambridgeshire, which will both officially open in early 2026. These centres will train the next generation of skilled housebuilders in the trades most urgently needed, including brickwork, groundwork and site-carpentry to support the delivery of new homes.”

Turning Point

Adrian Attwood ACR, Executive Director and Chairman at DBR

Adrian Attwood ACR, Executive Director and Chairman at DBR, said: “The government’s announcement of 50,000 new youth apprenticeship places over the next three years is welcome news for heritage conservation. We’ve witnessed first-hand the consequences of the 40% decline in young people starting apprenticeships.

“The £725m commitment and removal of the 5% levy for under-25s creates conditions for heritage businesses to invest in the next generation. However, we must ensure traditional building crafts are properly represented with available and relevant apprenticeship standards and providers.

“The challenge now is changing perceptions. Our education system has created a cultural bias towards academic routes, leaving vocational careers significantly undervalued. Nearly a million young people are not in work or learning. Many could find fulfilment in heritage crafts and we urgently need those resources in the heritage sector.

“We need parents, educators and industry to step up now with quality training and recognise the value of these careers. Without urgent action, we risk losing centuries of irreplaceable knowledge. This must be the turning point.”

Welcome News

Patricia Gardiner, Sales and Marketing Director at Trade Direct Insurance

Patricia Gardiner, Sales & Marketing Director at Trade Direct Insurance, comments: “The UK construction industry is facing a potentially catastrophic skills shortage, with a decreasing workforce that will soon be unable to match the ambition the government expects from this sector. As such, the new initiative to encourage unemployed young people to consider careers in the construction sector is welcome news.

“The construction sector faces an acute shortage of skilled workers, creating a serious risk that it will be unable to deliver on the government’s housebuilding targets as well as critical infrastructure projects.

“For young people, the construction sector offers a secure, future-proof career in an industry where demand for skilled workers is rising due to an ageing workforce and growing project volumes. It provides competitive pay and, importantly, strong protection against job losses linked to AI and automation.

“In addition to previously announced measures to increase funding for training in technical colleges and expanded apprenticeship placements, the government is putting the foundations in place for a sustainable future for the sector and potentially helping to prevent a perfect storm of skills shortfall. However, this will require continued investment and follow through on the announced measures to ensure the benefits are felt for the industry.

“For companies and individuals already in the industry, and hoping to be part of the exciting training process for new workers in the sector, it’s vital that you ensure you have all the measures in place before you take on any apprentices or new employees.

“Consider if you have the correct insurance in place to protect your business and your employees. You may need to take out employer’s liability insurance for example. If you decide to take on new workers, you will also need to update your provider to notify them that you are taking on new staff.”

>> Read more about apprenticeships in the news