Ministers have pledged to “back the next generation” by investing in tens of thousands of new apprenticeships and training opportunities.
The government has promised to create 120,000 new training routes for construction workers, engineers, healthcare staff and other trades in England before the next general election.
This is part of a wider effort to increase British workers’ skills and cut net migration in the UK.
Sir Keir Starmer’s training hike will include an extra 30,000 apprenticeships in the next four years, with a budget of more than £3bn in the current financial year.
Education Secretary Bridget Phillipson said Labour is investing in a “shared, stronger economic future” through Britain’s young people.
Image: Bridget Phillipson. Pic: PA
She 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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“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.”
From January 2026, funding will be shifted away from masters-level apprenticeships to focus on training at lower levels, although support will be maintained for those aged 16-21 and existing apprentices.
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The PM speaking earlier this month about the UK looking to set up ‘return hubs’ in other countries for migrants awaiting deportation
Neil O’Brien, the shadow education minister, has criticised this move, saying the “decision to scrap higher apprenticeships will do damage to the public services, particularly the NHS”.
He added: “It will make it impossible for many young people who don’t go to university to enter the professions. Numerous employers and professional bodies have warned about the damage scrapping higher apprenticeships will do, which is why this is being snuck out during recess.
“Bridget Phillipson’s decision to axe almost all higher apprenticeships is compounding the damage done by increasing national insurance which is already increasing youth unemployment.”
The immigration White Paper published earlier this month set out plans to hike the immigration skills charge by 32% to “upskill the domestic workforce and reduce reliance on migration”.
Up to 45,000 of the government’s new training places will be funded by this change.
Sarah Yong, director of policy and public affairs at the Youth Futures Foundation said: “International evidence shows apprenticeships are a highly impactful way to support young people to prepare for and access jobs, yet participation among under-25s, especially the most marginalised, has declined in recent years.
“With stubbornly high youth unemployment and inactivity, rebalancing the apprenticeship system can encourage investment in youth apprenticeships and is a first step in enabling more young people to access good work.”
Meanwhile, the Law Society urged the government to continue to fund masters-level apprenticeships for those aged over 21.
They claimed that apprenticeships “play a vital role in promoting social mobility” in the UK.
Only a quarter of British adults think Sir Keir Starmer will win the next general election, as the party’s climbdown over welfare cuts affects its standing with the public.
A fresh poll by Ipsos, shared with Sky News, also found 63% do not feel confident the government is running the country competently, similar to levels scored by previous Conservative administrations under Boris Johnson and Rishi Sunak in July 2022 and February 2023, respectively.
The survey of 1,080 adults aged 18-75 across Great Britain was conducted online between 27 and 30 June 2025, when Labour began making the first of its concessions, suggesting the party’s turmoil over its own benefits overhaul is partly to blame.
The prime minister was forced into an embarrassing climbdown on Tuesday night over his plans to slash welfare spending, after it became apparent he was in danger of losing the vote owing to a rebellion among his own MPs.
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Govt makes last-minute concession on welfare bill
The bill that was put to MPs for a vote was so watered down that the most controversial element – to tighten the eligibility criteria for personal independence payments (PIP) – was put on hold, pending a review into the assessment process by minister Stephen Timms that is due to report back in the autumn.
The government was forced into a U-turn after Labour MPs signalled publicly and privately that the previous concession made at the weekend to protect existing claimants from the new rules would not be enough.
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While the bill passed its first parliamentary hurdle last night, with a majority of 75, 49 Labour MPs still voted against it – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.
It left MPs to vote on only one element of the original plan – the cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.
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Govt makes last-minute concession on welfare bill
An amendment brought by Labour MP Rachael Maskell, which aimed to prevent the bill progressing to the next stage, was defeated but 44 Labour MPs voted for it.
The incident has raised questions about Sir Keir’s authority just a year after the general election delivered him the first Labour landslide victory in decades.
And on Wednesday, Downing Street insisted Rachel Reeves, the chancellor, was “not going anywhere” after her tearful appearance in the House of Commons during prime minister’s questions sparked speculation about her political future.
The Ipsos poll also found that two-thirds of British adults are not confident Labour has the right plans to change the way the benefits system works in the UK, including nearly half of 2024 Labour voters.
Keiran Pedley, director of UK Politics at Ipsos, said: “Labour rows over welfare reform haven’t just harmed the public’s view on whether they can make the right changes in that policy area, they are raising wider questions about their ability to govern too.
“The public is starting to doubt Labour’s ability to govern competently and seriously at the same levels they did with Boris Johnson and Rishi Sunak’s governments. Labour will hope that this government doesn’t end up going the same way.”
Image: Chancellor of the Exchequer Rachel Reeves (right) crying as Prime Minister Sir Keir Starmer speaks. Pic: Commons/UK Parliament/PA
It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.
Her spokesperson says it was a personal matter that they will not be getting into.
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Even Kemi Badenoch, not usually the most nimble PMQs performer, singled her out. “She looks absolutely miserable,” she said.
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The Tory leader asked the PM if he could guarantee his chancellor’s future: he could not. “She has delivered, and we are grateful for it,” Sir Keir said, almost sounding like he was speaking in the past tense.
Image: Rachel Reeves looked visibly upset behind Keir Starmer at PMQs. Pic PA
It is important to say: Rachel Reeves’s face during one PMQs session is not enough to tell us everything, or even anything, we need to know.
But given the government has just faced its most bruising week yet, it was hard not to speculate. The prime minister’s spokesperson has said since PMQs that the chancellor has not offered her resignation and is not going anywhere.
But Rachel Reeves has surely seen an omen of the impossible decisions ahead.
How will she plug the estimated £5.5bn hole left by the welfare climbdown in the nation’s finances? Will she need to tweak her iron clad fiscal rules? Will she come back for more tax rises? What message does all of this send to the markets?
If a picture tells us a thousand words, Rachel Reeves’s face will surely be blazoned on the front pages tomorrow as a warning that no U-turn goes unpunished.
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