Apprenticeships to be put on equal footing with degrees

A major overhaul of the UK's apprenticeship and skills system is to be set out, placing apprenticeships on an equal footing with university degrees and aiming to remove long‑standing barriers for young people entering work.

Central to the changes is a £1 billion investment over the next three years, designed to support 50,000 more young people into apprenticeships and high‑quality training. The funding is intended to tackle youth unemployment while helping employers access the skilled workforce they need to grow, including in people‑focused sectors such as hair, beauty and wellbeing.

From August, small businesses will be able to take on young apprentices with training fully funded, following the removal of the 5% co‑investment requirement for eligible under‑25s. It is hoped that the move will open up thousands of new apprenticeship opportunities and make it easier for smaller employers to invest in young talent.

Financial incentives for employers are also set to increase, including payments for hiring young people aged 18–24 who have been on Universal Credit, alongside a £2,000 apprenticeship incentive for smaller businesses taking on 16 to 24‑year‑olds.

In addition, a new online service, JobHelp, will launch bringing together support on jobs, apprenticeships, training and skills, with the aim of making it easier for young people to navigate their options and find routes into work.

The package also includes expanded foundation apprenticeships, new short training courses in areas such as digital and engineering skills and regional pilots giving mayors greater powers to connect young people with local employers.