Higher training costs for older workers risks plan to tackle youth jobs crisis, employers say
Summary
UK employers have urged ministers to reconsider a proposed change that would make it more expensive for businesses to train workers over 25 through England’s apprenticeship funding system. The plan aims to shift support toward young people amid high youth unemployment, but business groups say it could move training opportunities rather than create more.Key Facts
- Ministers are considering increasing the cost to employers of training workers over 25 in England by 25%.
- Under the proposal, levy funds could cover the full cost of apprentices under 25, while employers would pay 25% of training costs for older apprentices separately.
- The proposal has not been finalised and is expected to form part of the government’s response to a review of youth unemployment.
- About 1 million people aged 16 to 24 in the UK are not in education, employment or training.
- People over 25 account for more than half of new apprenticeship enrolments.
- Make UK policy executive Robert Halfon said the change could shift existing training opportunities instead of creating new ones.
- The CBI said adult training helps people enter work and update their skills as the workplace changes, including through the impact of AI.
- The growth and skills levy raises about £4 billion a year to fund England’s apprenticeship system.
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