£100m for Apprenticeships is a Start but in the age of AI will it go far Enough?

With latest ONS figures showing nearly 1 million 16-24-year-olds are not in education, employment or training (NEET), the national conversation around youth employment has turned once again to whether young people are sufficiently prepared for work. 

At the Labour Party Conference on 28th September, Chancellor John Healey announced another £100 million to expand the Local Apprenticeship Service. As FE News reported, the funding will run across two years, and allow all 14 mayoral strategic authorities to participate.

While it’s a positive step, particularly on the heels of May’s Milburn report, which found 6 in 10 young people classified as NEET have never held a job, funding alone cannot deliver lasting change. Its success depends on three pillars: collaboration, training that develops human potential alongside AI literacy, and meaningful opportunities for young people too often left behind. 

Building the skills employers need now and in the future

The skills we teach young people need to reflect what will make them valuable to employers. But with AI becoming part of everyday business operations, those requirements are changing all the time.

As sophisticated AI tools become widely accessible, the competitive advantage for organisations will come from not just how quickly they adopt those technologies, but how effectively their people use them. To that end, the greatest value young people can bring will be the unique human qualities that allow organisations to realise AI’s full potential.

Creativity helps employees see possibilities beyond AI-generated outputs, while sound judgement is essential for recognising when the technology gets things wrong. Empathy, communication and collaboration remain fundamental to working effectively with others, as do the leadership skills needed to turn technological capability into meaningful business outcomes. 

When designing apprenticeships, we need to think carefully about how we’re developing these traits in young people. Otherwise, we risk training them for tasks AI will soon take over, leaving them with qualifications that have a very short shelf life while businesses lose out on the talent they need to make their AI investments worthwhile. 

AI literacy must be the bedrock

Of course, those human capabilities need to be developed alongside practical AI literacy. Every young person entering employment should understand how technology can support their work, where its limitations lie, and when human intervention is necessary.

The challenge is to develop those skills through relevant, practical learning. Consider a young person starting an apprenticeship in business administration. They may be expected to work with AI-generated documents, automated workflows or digital reporting tools. But if they don’t know how to recognise unreliable outputs or identify potential risks, they could introduce serious errors into the very processes AI is supposed to improve.

Forward-thinking training providers are already addressing this through courses that embed AI into everyday workplace tasks and real business projects, developing practical fluency alongside the judgement skills needed to use technology responsibly.

Ultimately, young people need opportunities to think critically and exercise their judgement alongside AI, because knowing how to use the tools is only valuable if they also know when to question them.

£100million will achieve little without stronger collaboration

The expansion of the Local Apprenticeship Service creates a valuable opportunity to bring training closer to the needs of local employers. But let’s be realistic about the funding: £100 million over two years can only go so far. Getting the most out of it will depend on a much more coordinated approach between mayoral authorities, employers, and training providers.

Employers need to show how work really happens, including what AI is changing and which capabilities they’re struggling to find. Training providers need to turn that intelligence into practical, targeted learning that people can apply in real situations. Local authorities can then direct those resources to communities that need them most. 

Crucially, that collaboration needs to continue, with employers feeding back as AI changes the skills their businesses require. Otherwise, we risk spending £100 million preparing young people for jobs that have already evolved by the time they qualify.

Ensuring the investment reaches underserved talent

Even well-designed training will have limited impact if the people who could benefit most struggle to access it. Per the Milburn report, 60% of young people classified as NEET are economically inactive; and for some, poor health, disadvantage and extended periods outside education create barriers to participation.

Women face different but equally oppressive barriers, from caring responsibilities and inflexible training arrangements to limited access to digital development. At a time when businesses urgently need people capable of putting AI to work, overlooking either group makes little economic sense. 

Maximising the impact of the £100 million investment means accounting for these realities of underserved groups. Training providers have the responsibility to design programmes with flexible entry routes, mentoring, and a focus on rebuilding confidence, while it’s up to the mayoral authorities to ensure disadvantaged groups get the opportunities they deserve. 

Employers have their part to play, too. The Growth & Skills Levy offers them an opportunity to invest in talent who might otherwise miss out, giving them a strong foundation to succeed in an AI-enabled future. In turn, businesses benefit from building a broader, more capable workforce equipped to support genuine transformation and growth.

Making the £100 million count

As access to AI tools becomes commonplace, what separates successful organisations will be the human power behind that technology. The £100 million investment is an opportunity to develop that power from the beginning of people’s careers – provided apprenticeships are designed collaboratively, reach those who need them most, and equip them to keep contributing as work evolves.

If we give young people an opening into employment, we owe them a meaningful role in the economy they’re entering. And for businesses looking to manifest AI’s full potential, investing in those people is an investment in their own future. 

By Lauren Webb, CRO at Instep