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Government announces £725m skills reform package to expand apprenticeship opportunities
The UK Government has announced a £725 million package of reforms designed to expand access to apprenticeships and boost skills development for young people, with 50,000 additional opportunities expected to be created over the next three years.
The reforms aim to tackle youth unemployment, widen access to training and align skills provision more closely with local employer needs. As part of the changes, a new wave of foundation apprenticeships will be introduced across key sectors including hospitality and retail.
Under the new measures, the Government will cover the full training cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses. Removing the 5% co-investment requirement is intended to make it simpler for SMEs to take on young talent and increase participation in work-based training.
A further £140 million will support a pilot programme enabling Mayors and regional authorities to connect young people—particularly those not in education, employment or training—with apprenticeship opportunities in their local area. The initiative is designed to ensure training reflects regional labour market demand.
From April 2026, a series of short technical courses will be introduced in areas such as digital skills, engineering and AI, offering additional flexibility for employers and learners. A new Level 4 apprenticeship in AI will also be launched.
The reforms follow a wider programme of investment aimed at increasing apprenticeship starts and addressing a decline in participation among young people over the last decade. The Government has highlighted its ambition to ensure two-thirds of young people progress into higher-level learning, whether academic, technical or via apprenticeships.
Industry figures from sectors including automotive, construction, brewing, hospitality and manufacturing have welcomed the plans, emphasising the role apprenticeships play in developing skilled talent pipelines and supporting long-term career development.
Chris Perriton, Head of Learning Pathways, Marston said: "At Marston’s, we believe apprenticeships are a vital pathway for young people to build confidence, gain practical skills and unlock long-term careers in hospitality. We welcome the Government’s commitment to expanding opportunities and driving skills development, and we’re proud to play our part by offering high-quality apprenticeships across our pubs and support teams. These programmes not only provide hands-on experience but also the structured training and mentoring needed to help the next generation thrive in our industry."
Businesses within the hospitality sector have also noted the importance of high-quality apprenticeship programmes in supporting progression, building confidence and providing structured pathways into employment for young people.
The Government will work with Skills England and industry partners over the coming months to further shape the reforms and support their rollout.
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