The government has unveiled more details on the £725 million overhaul of the apprenticeship system, signalling a continued push to rebuild the skills pipeline and to tackle long-term labour shortages
Apprenticeships: what’s changing?
Headlines from the announcement:
- A major £725 million investment has been announced to deliver more apprenticeships for young people and help match skills training with local job opportunities.
- Young people are to benefit from increased access to training with the full cost of apprenticeships at SME’s covered by the Government.
- A £140 million partnership with local leaders will back thousands more apprenticeship starts for young people who are not in education, employment, or training (NEET)
- 50,000 young people across the country will be better equipped for jobs of the future via new apprenticeships and training courses.
In a radio interview, Skills Minister Baroness Jacqui Smith said the focus was on reforming the apprenticeship system.
“The real priority for us with apprenticeships is to put right what we’ve seen over the last 10 years, which is a reduction of 40% in young people starting apprenticeships – apprenticeships which can really set you on the route to a high-skilled job and the sort of earnings and the sort of jobs that young people want.”
“We’re fully funding apprenticeship training for young people in small and medium-sized businesses, unlike previously, and we are reforming the rest of the apprenticeship system so that we can offer short courses for adults.”
At least one response from the sector was positive. Andy Rayner, director of skills and apprenticeships at Travis Perkins, said, “Our industry needs more people coming through, and these measures will make it easier for both learners and employers to commit to apprenticeship routes.”
Plans to get young people off Universal Credit and into jobs
As part of the campaign, the government is introducing measures to tackle youth unemployment. Work and Pensions Secretary Pat McFadden outlined plans to create 350,000 training and work experience placements, including 55,000 six-month roles for 18–21-year-olds who have been on Universal Credit for 18 months or more.
These placements will be fully subsidised, offering 25 hours per week at the legal minimum wage, funded from an £820 million allocation running until 2029.
The construction industry has been named as one of the targets for this scheme, though specific employers are yet to be confirmed.
McFadden described the scheme as “an offer on one hand, but an expectation on the other.” Young people will need a “good reason” to decline a placement, with refusal potentially leading to loss of benefits. The aim is clear: reduce the number of young people not in education, employment, or training (NEET), which currently stands at nearly one million.
What this means for construction leaders
These measures present both opportunities and responsibilities:
- Talent pipeline: Fully funded apprenticeships and subsidised placements can ease recruitment pressures in hard-to-fill roles.
- Engagement: Early collaboration with local authorities and training providers will be key to shaping cohorts and ensuring job quality.
- Compliance and reputation: With conditionality attached to placements, employers must ensure roles offer meaningful work, progression, and safe conditions to avoid churn and reputational risk.
- Strategic planning: Align workforce development strategies with these initiatives to secure funding, meet project timelines, and maintain standards.
The government’s approach seemingly aims to combine long-term skills investment with short-term labour market interventions.
For businesses across UK infrastructure, this is a chance to strengthen the workforce pipeline and potentially help alleviate issues around resource – but only if businesses act early to influence implementation and integrate these opportunities into their recruitment strategies.
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