A Step Forward To Help Unlock New Jobs and Apprenticeships For Young People

This week, Edge were invited to hear Pat McFadden deliver an announcement at Waltham Forest College. He set out a renewed focus on helping young people into work, warning that too many are missing out on the opportunity to build skills, confidence, and purpose through employment.

Speaking at a press conference attended by students, education leaders, employers and training providers, the Work and Pensions Minister argued that work is about far more than a pay cheque.

“Work is good for us. Not just good for earning a wage. It’s good for pride, our purpose and our sense of identity. Too many young people are missing out on work.”

McFadden said the current moment demands more than minor adjustments to existing policies.

Edge welcomes the announcement and the ambition to unlock 200,000 new jobs and apprenticeships for young people. In particular, the decision to increase the incentive payment for SMEs hiring a young apprentice to £2,000. It’s something we called for in our open letter to the Secretary of State for the #ApprenticeshipsWork campaign last year.

SMEs and Apprenticeships

With SME apprenticeship numbers declining in recent years and many small firms facing significant cost pressures, increasing the incentive is a positive and welcome step. However, financial pressures are only part of the challenge. SMEs also need practical support to navigate the apprenticeship system, from understanding the full range of incentives available to finding the right training provider and identifying an apprenticeship standard that meets their skills needs. Our polling found that almost half of SMEs are unaware of the existing grant for 16–18 year-old apprentices, highlighting the need for clearer guidance and stronger brokerage support. 

In his speech, the minister warned that the welfare state ultimately depends on public confidence and must adapt to a changing social and economic environment. With the number of young people who are not in education, employment or training (NEET) remaining too high, he described the situation as both a waste of potential and a growing economic challenge.

Kicked the ladder away

A key concern highlighted during the announcement was the sharp decline in youth apprenticeship starts in recent years, which McFadden said had effectively “kicked the ladder away” from many young people trying to enter the workforce.

Looking ahead, he also pointed to the coming impact of artificial intelligence on the labour market, stressing that the UK cannot afford to leave a generation behind.

“With an ageing society we can’t afford to write off young people. For years we relied on net migration. We now need to act to train our own people.”

In response, McFadden announced a pro-young people package of incentives aimed at encouraging employers to invest in young talent, expanding coaching and support for those struggling to access work, and addressing the drop in apprenticeships.

The message from the event was clear. Tackling youth inactivity is not only a social priority but an economic one. As the labour market evolves, investing in young people now will be critical to building a stronger workforce for the future.

Susan Higgins is Director of Communications at the Edge Foundation