The government has confirmed it is “refocusing” training away from higher-level apprenticeships, removing levy funding for people over 21 years old.
In reforms announced today (27 May), it said that from January 2026, employers will only be able to use the apprenticeship levy to fund Level 7 (master’s level) courses for existing apprentices and those aged 16-21, as it targets funding towards training at lower levels.
The measures, backed by a record £3bn apprenticeship budget, aim to open up opportunities for young people in careers the country needs, and involve an additional 30,000 apprenticeship starts during this Parliament.
Education secretary Bridget Phillipson said: “A skilled workforce is the key to steering the economy forward, and today we’re backing the next generation by giving young people more opportunities to learn a trade, earn a wage and achieve and thrive.
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“When we invest in skills for young people, we invest in a shared, stronger economic future – creating opportunities as part of our Plan for Change. But everyone has a role to play in a thriving economy, and we’re taking our responsibility seriously, providing more routes into employment. It’s now the responsibility of young people to take them.”
The measures also include a 32% increase in the Immigration Skills Charge, which will deliver up to 45,000 additional training places to upskill the domestic workforce and reduce reliance on migration in priority sectors – as announced in this month’s immigration white paper.
In the past five years, the number of higher-level apprenticeships has more than doubled. According to a written answer last month in Parliament, 24% of funded courses were at Level 6 and 7 in 2023-24, compared to 11% five years earlier.
Lizzie Crowley, senior skills adviser at the CIPD, said: “The government’s announcement of 120,000 new training opportunities for young people is welcome recognition of the urgent need to address persistently high levels of youth unemployment, economic inactivity, and technical skills shortages. However, a more ambitious approach is needed to genuinely expand opportunities and rebalance the system in favour of young people, including an apprenticeship guarantee for all 16 to 24-year-olds.
“New foundation apprenticeships are also set to be introduced for those aged 16 to 21. These are expected to launch this August following a government decision to lower the minimum duration of apprenticeships from 12 months to eight. Expanding opportunities is vital, but shortening programmes risks damaging the reputation and long-term credibility of apprenticeships. England already offers some of the shortest apprenticeships internationally, in contrast to the two-year norm in many countries.”
Neil O’Brien, shadow education minister, said: “The decision to scrap higher apprenticeships will do damage to the public services, particularly the NHS. It will make it impossible for many young people who don’t go university to enter the professions.”
In a letter to the skills minister Baroness Jacqui Smith in November, Danny Mortimer, chief executive of NHS Employers, said that clinical degree apprenticeships had become a critical part of the NHS’ plan to attract and develop staff to become registered nurses and allied health professionals.
“Our members are however concerned that the changes now being considered for higher-level apprenticeships (particularly at Level 7 and any change to Level 6) will weaken the ability to provide access to essential clinically based apprenticeships,” he wrote.
The Department for Education is launching 13 new Level 2 construction courses for adults in non-devolved areas under the Free Courses for Jobs scheme, and providing £14 million of adult skills funding for construction for devolved areas for the next academic year. This is expected to support up to 5,000 additional adult learners.
It is also investing £136 million for Skills Bootcamps in a range of priority sectors in 2025-26, providing training to over 40,000 learners; and £100 million over four years to expand Construction Skills Bootcamps. Ten technical excellence colleges specialising in construction skills open in September.
Crowley added: “To genuinely increase apprenticeship opportunities for young people, we are calling for an apprenticeship guarantee for all 16 to 24-year-olds, supported by enhanced financial incentives for SMEs. Our research shows overwhelming employer support for this – 89% back such a guarantee, and 60% say they could offer an additional apprenticeship for someone in this age group under this model.”
Today’s announcement follows a dramatic fall in the number of apprenticeship starts over the past decade, and as data from the Office for National Statistics last week showed as many as one in eight 16-24 year olds are not in employment, education or training (Neets).
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