Government Announces Major New Support Package to Boost Youth Employment and Apprenticeships
Today’s announcement marks a significant step forward in removing barriers that prevent young people from accessing apprenticeships, skills training and employment opportunities.
With new financial support for both learners and employers, alongside investment in additional college places, the government has set out a package of measures designed to help more young people gain the skills and experience needed to succeed in the workforce.
Making Apprenticeships More Accessible
One of the headline measures is the introduction of a new apprenticeship bursary worth up to £4,500 per year per household. The bursary is aimed at supporting families on Universal Credit who can currently be financially disadvantaged when a young person begins an apprenticeship. The new support is intended to ensure that financial circumstances do not prevent young people from choosing an apprenticeship pathway.
The government has also confirmed that, from 1 August 2026, apprenticeship training will be fully funded for all eligible under-25s. Alongside broader reforms, this forms part of the ambition to create 50,000 new youth apprenticeships during this Parliament.
Enhanced Incentives for Employers
Employers will also benefit from a range of new and existing financial incentives designed to encourage the recruitment of young apprentices and jobseekers. Combined, these measures can provide up to £8,000 in support for businesses taking on young people.
Available support includes:
- £3,000 Youth Jobs Grant for employers hiring an 18 to 24-year-old who has claimed Universal Credit for six months or more.
- £2,000 Non-Levy Hiring Grant for SMEs recruiting an additional apprentice aged 16 to 24, launching in October 2026.
- £2,000 Foundation Apprenticeship Incentive to support employers recruiting young people who need preparation before progressing to a full apprenticeship.
- £1,000 Young Apprentice Payment for employers recruiting eligible young apprentices aged 16 to 18, or certain 19 to 24-year-olds.
In addition, National Insurance contribution relief for apprentices under 25 remains in place, helping to reduce recruitment costs further.
More College Places and Skills Training Opportunities
Alongside apprenticeship reforms, the government is investing in the expansion of post-16 education and training. A further £287 million will be invested to create more than 22,000 additional places across colleges and post-16 providers in England. Many of these expansions will focus on high-demand sectors such as construction, helping to develop the workforce needed for future economic growth.
This builds on wider investment in 16 to 19 education, with the government committing £9 billion to the sector in 2026-27.
What This Means for Employers
For employers struggling to attract and develop talent, the new package represents a welcome investment in the future workforce. Additional financial support reduces the cost of recruitment, while expanded training opportunities will help more young people gain the skills employers need.
These measures should make apprenticeships more accessible, particularly for young people who have previously faced financial barriers to participation. They also provide employers with further incentives to invest in early careers talent and build stronger, more sustainable workforce pipelines.
A Positive Step Forward
Commenting on the announcement, Work and Pensions Secretary Pat McFadden said:
“Every young person deserves the chance to build a future they can be proud of, and our welfare system should be a springboard to opportunity, not a barrier to it.”
Education Secretary Lucy Powell added:
“Too many young people face unnecessary barriers to apprenticeships, college places and training. We’re investing to change that.”
Looking Ahead
At a time when many sectors continue to face skills shortages and skills gaps, these reforms have the potential to benefit both young people and employers. By reducing financial barriers, expanding access to education and providing greater support for businesses, the government is creating more opportunities for the next generation to enter skilled employment and build rewarding careers.
We welcome any measures that help employers invest in young talent and make apprenticeships a more accessible and attractive route into employment. The success of these reforms will ultimately be measured by the number of young people who can access meaningful opportunities and the number of employers able to develop the skilled workforce they need for the future.
