London, December 08, 2025
The UK government has announced a £725 million investment to create 50,000 new apprenticeships over the next three years, aiming to tackle youth unemployment and reform the apprenticeship system nationwide. This initiative targets young people under 25 and small and medium-sized enterprises (SMEs).
Full Cost Coverage for SMEs
Under the new scheme, the government will cover the full cost of apprenticeships for eligible young people at SMEs, removing the previously required 5% employer co-investment. This measure is intended to reduce financial barriers for businesses and encourage greater uptake of apprenticeships.
Introduction of Foundation Apprenticeships
The reform package includes the launch of foundation apprenticeships focused on sectors such as retail and hospitality. These are designed to widen access to job-relevant skills training, particularly for young people seeking to enter the workforce in these industries.
Part of a Broader Youth Investment Program
This £725 million investment forms part of a larger £1.5 billion Youth Guarantee and Growth and Skills Levy initiative. The broader program is intended to create more work opportunities and tailor skills training to meet local labor market requirements effectively.
Governmental Perspective on Apprenticeships
Prime Minister Keir Starmer underscored a strategic shift away from a university-centric approach to youth career development. He emphasized the need to elevate apprenticeships as a respected and viable pathway for young people, reflecting the government’s commitment to diverse professional routes.
This government initiative is poised to directly address youth unemployment and support economic growth by equipping young people with practical, vocational skills relevant to today’s job market. The expanded apprenticeship opportunities are expected to foster a stronger link between education and employment across the UK.