Apprenticeships are to be placed on an "equal footing" with university degrees as part of a major Government drive to overhaul the skills system, create more opportunities for young people and tackle the skills shortages that have held back British businesses for years.
Prime Minister Sir Keir Starmer made the pledge during a visit to London South Bank Technical College on Tuesday 12 May, where he met construction apprentices and saw first-hand how technical training can help young people gain the practical skills, confidence and experience they need to build successful careers.
The Prime Minister used the visit to underline the Government's determination to "tear up the status quo" that has for decades locked too many young people out of opportunity and left employers without the skilled workforce they need to grow.
£1 billion investment to support 50,000 young people
Central to the reforms is a £1 billion investment that will support 50,000 more young people into apprenticeships and high-quality training over the next three years, helping tackle youth unemployment while boosting economic growth.
The package forms part of a wider £2.5 billion investment over the next three years designed to support young people into work, apprenticeships and training.
Speaking at the college's Nine Elms campus, the Prime Minister said: "It's time to change the way apprenticeships are viewed and put them on an equal footing with university". He added that the Government would "go much further" in investing in apprenticeships, technical excellence colleges, and provision for young people struggling to find work.
Fully funded training for SMEs from August 2026
A cornerstone of the reforms is the removal of financial barriers that have historically prevented smaller businesses from taking on apprentices.
From August 2026, the Government will fully fund apprenticeship training for eligible under-25s at smaller firms, removing the current 5 per cent co-investment requirement that has required non-levy paying employers to contribute towards training costs.
For many small and medium-sized businesses, this represents a significant financial shift. Previously, SMEs have had to co-invest 5 per cent of training costs, which in some cases could amount to thousands of pounds per apprentice. From August, those costs will be covered entirely by the Government.
The change builds on the 2024 policy that removed co-investment for apprentices under 22, extending full funding to all under-25s employed by non-levy paying employers. According to industry analysis, in some cases businesses could receive up to £8,000 per apprentice, fundamentally changing the economics of investing in young talent.
New financial incentives for employers
Alongside the fully funded training, the Government is introducing a £3,000 Youth Jobs Grant for employers hiring 18 to 24-year-olds who have been claiming Universal Credit for at least six months.
Additional incentives include:
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£1,000 for hiring an apprentice aged 16 to 18 or eligible under-25s
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£2,000 apprenticeship incentive for SMEs taking on 16 to 24-year-old apprentices
JobHelp: a one-stop shop for young people
The Government has also launched JobHelp, a new online service bringing together support on jobs, skills, apprenticeships and training in one place. The platform is designed to help young people navigate the system more easily and find routes into work that fit around their needs.
Expanding the Jobs Guarantee
The Government is expanding the Jobs Guarantee scheme from 18 to 21-year-olds to include those aged up to 24, creating more than 35,000 additional subsidised jobs.
New foundation apprenticeships and shorter courses
New foundation apprenticeships will be introduced in sectors including hospitality and retail, giving young people a route into careers and further training. Shorter training courses focused on areas such as AI, engineering and digital skills have already launched.
Changes to English and maths requirements
The Government has also confirmed changes to English and maths requirements for adult apprentices, which ministers said could unlock opportunities for up to 10,000 more learners each year.
A new approach to skills
The reforms place apprenticeships at the heart of a new approach to skills, giving young people more ways to build secure careers and offering employers the workforce they need to grow.
Work and Pensions Secretary Pat McFadden, who accompanied the Prime Minister on the visit, said: "Too many young people have been locked out of good work and real opportunity. We are changing that and we are already making good on that promise".
"Through apprenticeships, training and the new JobHelp service, we are opening up clear, supported routes into work for young people in every part of the country. A stronger, fairer economy is one where every young person has a real chance to succeed, and this Government is delivering that".
Education Secretary Bridget Phillipson added: "For too long, young people have been let down by a system that offered too few routes into skilled, well-paid work. That is changing as more people learn the skills and get the hands-on experience that will help them build their careers".
"I believe talent exists everywhere, and opportunity should too. We are building a system that works for every young person, wherever they live and whatever path they choose".
Addressing the skills shortage
The reforms come as UK businesses continue to report significant skills shortages across key sectors. According to recent research, more than a third of employers say graduate hires are not meeting expectations, and 57 per cent of employers are experiencing skills shortages.
The Government's ambition is for two thirds of young people to be in a gold standard apprenticeship, higher training or university by the age of 25, boosting priority sectors including housebuilding, clean energy, digital technology and infrastructure.
The Prime Minister's ambition for more young people to take part in higher-level learning whether academic, technical or through apprenticeships means that success is no longer defined by a single path, and talent and hard work are recognised in all their forms.
A defining moment for technical education
The visit to London South Bank Technical College placed the institution's construction apprentices at the centre of an important national conversation about skills, employment and opportunity. It also demonstrated the vital role that colleges play in connecting young people with employers, industry-standard training and future careers.
For students interested in construction and the built environment, hands-on learning is especially valuable, helping them understand not only the technical side of their chosen trade, but also teamwork, communication, problem-solving and professional standards.
The visit underlined the importance of investing in skills at a time when London and the wider UK economy need trained workers across construction, infrastructure, clean energy, digital technology and other key sectors.
A clear message
The Prime Minister and Secretary of State's visit sent a clear message: technical education and apprenticeships are not secondary options but prestigious and valuable career routes that deserve recognition alongside traditional academic paths.
For decades, underinvestment in apprenticeships and technical education drove too many young people away from opportunity and left employers without the skills they need. This Government is determined to reverse that failure and place apprenticeships at the heart of a fairer economy.
With £1 billion of new investment, fully funded training for under-25s at smaller firms, enhanced financial incentives for employers, and a new online platform to help young people navigate their options, the Government is delivering what it describes as the biggest transformation of apprenticeships in a decade.
The message to young people across the country is clear: whether you choose university, an apprenticeship, or technical training, there is now a supported route into skilled, well-paid work. And for employers, particularly smaller businesses, the financial barriers to investing in the next generation of talent are being removed.