Major change to apprenticeships as government vows to ‘back the next generation’
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.
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Education Secretary Bridget Phillipson said Labour is investing in a “shared, stronger economic future” through Britain’s young people.
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.
“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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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.”
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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.
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Chancellor Rachel Reeves has dodged calls from her predecessor Anneliese Dodds for a wealth tax to be considered ahead of this autumn’s budget.
When Sir Keir Starmer became Labour leader in 2020, Ms Dodds was his first pick for shadow chancellor. However, she did not last long and was replaced by Ms Reeves, who then got the government job after last year’s election win.
Speaking to the Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, Ms Dodds said she had examined wealth taxes when she was briefly in the shadow chancellor job and how one could be implemented.
She said: “I would hope the Treasury is considering that kind of evidence, as well as other changes that have been put forward.”
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‘Rachel Reeves would hate what you just said’
Asked today if about Ms Dodds’ intervention, Ms Reeves said: “Decisions around tax are decisions that are made at a budget and we’ll make those decisions in the appropriate way, but the number-one priority of this government is to grow the economy.
“And that means bringing more investment into Britain, creating more good jobs paying decent wages here in Britain.
Listen here to hear Ms Dodds’ full comments:
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“We’ve got to get the balance right on taxation because we want that investment, we want those jobs to come here.
“That’s why we’re reforming the planning system, secured three trade deals in the first year of this Labour government, cutting back on unnecessary regulation, and reforming our pension system to unlock money for businesses to be able to invest here in the UK.”
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What is a wealth tax?
The government’s financial position is stretched ahead of the next budget, due at the end of autumn.
Ms Reeves has committed herself to not changing her fiscal rules, leaving little wiggle room to avoid tax rises or spending cuts.
This is due to the government’s inability to save money through policies like welfare reform, which were gutted due to a rebellion of backbench Labour MPs.
Last week, Business Secretary Jonathan Reynolds branded the suggestion of a wealth tax “daft” – but he has less influence over the writing of the budget than the chancellor.
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Meanwhile, reports from the Daily Telegraph suggested that Deputy Prime Minister Angela Rayner backed increasing taxes, including reinstating the pensions lifetime allowance and a higher corporation tax level for banks.
Ms Dodds also wants to see those considered.
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