Government changes may jeopardize the trustworthiness and scope of apprenticeships, warns CIPD
The current UK government has announced a Youth Guarantee aimed at providing every 16-24-year-old with a clear pathway into work, training, or further study. This initiative, driven by expanded apprenticeship opportunities, includes the introduction of new Foundation Apprenticeships for young people aged 16-21, starting this August.
The government's decision reflects a more ambitious approach to expand opportunities and rebalance the system in favor of young people. From January 2026, apprenticeship funding will prioritize young people aged 16–21 and select groups under 25, such as care leavers or those with EHCP. This shift in focus aims to address youth unemployment and technical skills shortages in sectors like construction, healthcare, digital technology, and advanced manufacturing.
The new Foundation Apprenticeships offer flexible, shorter programmes intended as stepping stones to full apprenticeships or employment. These programmes are designed to boost young talent's work readiness and social mobility. The minimum duration of these new apprenticeships will be eight months, following a government decision.
The proposed apprenticeship guarantee and financial incentives for Small and Medium Enterprises (SMEs) have gained overwhelming employer support. According to research, 89% of employers support the idea of an apprenticeship guarantee for individuals within the age group of 16 to 24. Furthermore, 60% of employers surveyed stated that they could offer an additional apprenticeship for someone in the same age group under the proposed model.
However, concerns have been raised about the potential impact on older learners. The government's decision restricts funding for Level 7 apprenticeships to those aged 16 to 21. This could affect the breadth and ambition of the apprenticeship offer, potentially limiting access to higher professional roles and social mobility in the longer term.
The government's announcement is part of broader strategies such as Skills England and the Industrial Strategy that prioritize workforce development. Skills England, established with over £3 billion investment and creation of 120,000 new training places, is tasked with implementing these reforms to strengthen apprenticeships as tools for skills development, social mobility, and economic growth.
While the expansion of apprenticeship opportunities serves to reduce youth unemployment and fill skills shortages, it's important to maintain a nuanced approach to managing the cost of delivering higher-level apprenticeships. The aim is to ensure that the quality and reputation of apprenticeships are not compromised as programmes are shortened.
In summary, the government’s current stance is strongly supportive of a youth apprenticeship guarantee with focused funding and new programme types to reduce youth unemployment and address skills shortages, while balancing policy coherence and labour market needs through Skills England and associated reforms. The announcement marks a significant step towards addressing youth unemployment, economic inactivity, and technical skills shortages in the UK.
- The government's Youth Guarantee, a part of broader strategies like Skills England and the Industrial Strategy, prioritizes workforce development through apprenticeships as tools for skills development, social mobility, and economic growth.
- The announced apprenticeship policy and legislation, including the new Foundation Apprenticeships, are intended to provide a clear pathway for young people ages 16-24 into work, training, or further study, addressing youth unemployment, technical skills shortages, and supporting social mobility.