Plan to make firms pay more to train older workers than youth apprentices in England
Summary
The UK government plans to make employers in England pay more to train workers over 25 years old than younger apprentices. This change aims to encourage companies to hire and train more young people, reversing a large drop in youth apprenticeships over the past decade.Key Facts
- Employers will have to pay 25% more to train apprentices aged over 25 than those under 25.
- The plan targets a 40% decline in youth apprenticeship starts over the last ten years.
- More than half of new apprenticeships now go to workers over 25, while young people’s enrollment has nearly halved.
- The apprenticeship funding comes from a £4 billion tax called the growth and skills levy paid by large employers.
- Under the new rules, the levy will cover full costs for young apprentices aged 16-24 but only 75% for older apprentices, with employers paying the rest.
- The government aims to launch the changes in September 2027 for the next academic year.
- Officials say the current system lets employers spend their training funds without limits, but it hasn’t worked well to support youth apprenticeships.
- Some experts recommend increasing the levy rate to raise funds specifically for youth training programs.
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