Higher training costs for older workers risks plan to tackle youth jobs crisis, employers say
Ministers are considering changes to apprenticeship funding in England that would make training workers over 25 cost employers more, in an effort to direct support towards younger people. Business groups warn this could shift existing opportunities rather than create new ones, potentially undermining the government’s response to high youth unemployment.
The proposal, which is not yet final, would let employers use levy funds to cover the full training cost for apprentices under 25, while covering 75% of costs for older workers and requiring employers to pay the rest separately. It comes as about 1 million people aged 16 to 24 are not in education, employment or training, and youth apprenticeship starts have fallen by 40% over the past decade. Employers also argue that adult training helps workers update skills and supports business needs, including as AI changes workplaces.
In short
- Ministers may make older apprenticeships more expensive for employers.
- Business groups say this could redistribute rather than expand opportunities.
- About 1 million young people are not in education, work or training.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Giving employers full levy coverage for apprentices under 25 could make youth training more attractive and direct limited public support towards a group facing high unemployment and falling apprenticeship starts. If the funding change prompts employers to recruit and train more young people, it could help them gain skills and routes into work.
The case against
Requiring employers to pay part of the training costs for older apprentices could deter useful adult training without creating additional opportunities for young people. Employers argue that workers need to update their skills as business needs change, including because of AI, and that restricting support may weaken workforce capability while merely shifting apprenticeship places between age groups.
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