Reform of apprenticeship funding announced in PM’s conference speech

The UK government has announced plans to reform apprenticeships in England, in a move that aims to broaden opportunities for young people and provide a route into critical sectors.

Part of a wider initiative by Prime Minister Keir Starmer, the proposals put an emphasis on training as an alternative to higher education.

The measures will see a new “growth and skills levy”, which will replace the existing levy and enable funding for shorter apprenticeships. Under the new system, these apprenticeships would be permitted to run shorter than the 12-month minimum required under current law.

New foundation apprenticeships aimed towards younger people were also announced, seeking to allow apprentices to “earn a wage while developing vital skills”.

This new change will push businesses to invest in Level 7 apprenticeships, equivalent to master’s degrees, outside of the levy.

Training that is deemed eligible for funding will be determined by recommendations from the government body Skills England, through an assessment of priority needs.

The Prime Minister stated he aimed to “rebalance funding in our training system back to young people” while ensuring the measures “align […] with what businesses really need”

A report by Skills England revealed a decline in employer investment in training over the last decade.

The report further found that 1 in 10 roles are in critical demand, over 90% of which require training or education. As the demand is not equitable across all sectors and skills are variable across industries, the scheme aims to satisfy as many parties as possible.

When announcing the plan publicly at the Labour Party conference, the Prime Minister stated he aimed to “rebalance funding in our training system back to young people” while ensuring the measures “align […] with what businesses really need.”

He added that this was “the first step to a youth guarantee that will eradicate inactivity and unemployment for our young people – once and for all.”