Northern firms get under-25 apprentice funding in August
"Tear up the status quo" is how the Prime Minister framed a new push on apprenticeships on Tuesday 12 May, as ministers tried to draw a line under years of drift in skills policy. The headline change is hard cash: from August, the full training cost for eligible under-25 apprentices at smaller businesses will be covered, with Government ending the 5% co-investment charge those firms previously had to pay. For readers across the North, the political message is plain enough. Apprenticeships are being pitched on the same footing as university, with ministers arguing that a secure career should not depend on one academic route or a move elsewhere to get on.
The announcement came as the Prime Minister met apprentices and repeated the Government's view that growth has been too unevenly felt. That will ring true in plenty of towns and city regions where headline numbers may have improved, yet young people still struggle to find steady, skilled work close to home. Ministers say apprenticeships will now sit at the centre of a wider skills offer, with JobHelp bringing jobs, training, apprenticeships and careers support into one place online. Pat McFadden said "too many young people have been locked out of good work and real opportunity", arguing that the new package is meant to open a clearer route into employment in every part of the country.
There is serious money behind the pitch. A previously announced £1 billion package is meant to support 50,000 more young people into apprenticeships and high-quality training over the next three years, with ministers tying the plan directly to lower youth unemployment and stronger growth. Set against the wider Youth Guarantee and extra investment linked to the Growth and Skills Levy, the total promised spend rises to £2.5 billion over three years. Government says that could support almost one million young people and create up to 500,000 chances to earn and learn.
For smaller employers, the detail matters more than the slogan. Abolishing the 5% co-investment rate for eligible under-25s should make it cheaper to take a chance on local talent, especially for firms that have wanted an apprentice but balked at upfront cost and admin. The package also includes £3,000 for businesses that hire an 18 to 24-year-old who has been on Universal Credit and out of work for six months, a move ministers say will help 60,000 young people into jobs over three years. Alongside that sits a £2,000 apprenticeship incentive for each new 16 to 24-year-old taken on by a smaller employer.
The Jobs Guarantee is also being widened, moving from 18 to 21-year-olds to 18 to 24-year-olds. Ministers say that expansion will create more than 35,000 extra subsidised jobs, taking the total backed through the scheme to more than 90,000 over the next three years. There is a strong devolution thread running through this as well. A further £140 million has been set aside for regional pilots, giving mayors more say in connecting young people, including those not in education, employment or training, with apprenticeship places at local employers. In the North, where metro mayors have pushed for more control over skills budgets, that may be one of the most closely watched parts of the package.
Ministers are also promising a more flexible system rather than one built around a single long course. Short training programmes launched last month in AI, engineering and digital skills are part of that, alongside work with the defence sector on fresh work-based routes. New rounds of foundation apprenticeships in hospitality and retail are meant to widen entry-level options too. Education Secretary Bridget Phillipson said "talent exists everywhere, and opportunity should too" - a line that will land in communities that have seen too many young people told that progress starts somewhere else.
That is why this matters beyond Westminster. In much of the North, the row over skills is really about whether young people can build a life where they grew up, whether local firms can hire with confidence, and whether mayors and colleges are trusted to shape what their own economies need. The Government says this package will restore pride in place and spread opportunity across the country. The test, though, will not be the rhetoric. It will be whether small businesses can use the scheme without a fight, whether the new placements turn up in the right places, and whether young people who have been shut out actually feel the difference once August arrives.