England plans to charge firms more to train workers over 25 than those under 25. The goal is to boost youth apprenticeships after a decline in enrolment over ten years. Source: theguardian.com.
How the Proposed Rule Works
Large employers pay 0.5% of their annual wages into the Growth and Skills Levy. This fund currently covers all training costs for apprentices.
Under the new plan, the fund would cover only a portion of training costs for apprentices over 25. Employers would need to cover the remainder.
For apprentices aged 16 to 24, the fund covers full training costs. The change starts in phases, beginning in September 2027.
Why the Change Is Being Pushed
Ministers are responding to Alan Milburn’s review on youth unemployment. The final report is delayed until after the autumn budget.
Official data shows a low number of young people enrolled in Labour’s foundation apprenticeship scheme — far below the target of 30,000.
Andy Burnham has made youth employment a key part of his agenda. He supports better school-to-work pathways and expanded vocational access.
How Apprenticeships Work Today
Since 2017, the Growth and Skills Levy has allowed employers to fund training. New courses include shorter foundation apprenticeships for younger learners.
Previously, employers could choose how to spend levy funds. This flexibility did not ensure youth training got priority.
Government’s Response to Critics
The Department for Work and Pensions says it is committed to helping young people enter the workforce.
It has already launched two measures: 50,000 new apprenticeships for young people and a £2,000 hiring bonus for SMEs taking on 16- to 24-year-olds.
These actions avoid adding to public spending. The government avoids further financial burdens on firms.
What Critics Say
Business groups oppose the rule. They say it reduces training flexibility and may lower overall apprenticeship numbers.
Older workers may lose access to upskilling. This could widen skills gaps in some industries.
Experts warn that without deeper reforms — like better school pathways and employer engagement — the policy may not succeed.
What’s Next
The Milburn review will be published in autumn. Its findings may shape whether the plan moves forward or changes.
Ministers will not act before seeing the review’s results. This ensures decisions are based on evidence.
For more on youth employment, see It’s Not Just Young People Who Need Jobs. For Labour’s broader job strategy, visit Labour’s Job Guarantee Proposal. A map of UK towns with few youth jobs is at UK Towns with Fewest Jobs for Young People Revealed.
More details on the Growth and Skills Levy are at find-employer-schemes.education.gov.uk.
Sources & further reading
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