Chancellor Announces £100m Local Apprenticeship Service led by Mayors

Chancellor John Healey has announced an extra £100 million to expand a local apprenticeship service, with every mayor now given the chance to run one in their area.

Speaking at Labour Party Conference in Liverpool, John Healey described the service as a “down payment” on Alan Milburn’s work for government on young people who are not in employment, education or training. He said the number of young people in this group had risen to nearly one million before the election, and that two thirds of them had never worked.

Under the plans, local teams will work “a bit like football scouts for apprenticeships”, approaching firms that have never taken on a trainee and offering support to do so, while also reaching young people who have been out of work. The service had originally been planned for a small number of areas. John Healey said mayors were best placed to lead it because they know which firms are hiring, which colleges are delivering and which estates have been left behind. The funding will come from savings within the Department for Work and Pensions.

“The best thing we can offer a young person isn’t a benefit payment. It’s a first job with training and a wage,” John Healey told delegates.

The Chancellor also announced the return of the Union Learning Fund, which was set up under a previous Labour government and later abolished. He said the fund had previously supported around 180,000 workers a year with training, and that the new version would focus on helping workers “harness artificial intelligence, not be outrun by it.”

During the speech, John Healey introduced apprentices from Cammell Laird who worked on the first newly built Mersey ferry in 60 years. He recalled asking one of them, apprentice pipe fitter Steve, what advice he would give a younger sibling about apprenticeships, and said the answer was to “just go for it” because apprentices are earning and learning at the same time.

John Healey said he wanted to move young people “from generation jeopardy to generation hope”. He will deliver the Budget on 28 October.

Sector Reaction

Sarah Beale, CEO of Association of Accounting Technicians (AAT), said:

“The Chancellor’s £100m investment in a new local apprenticeship service is great news, but the local focus must not narrow opportunity. Apprenticeships in sectors that cover every region and sector, like those in business, accounting and finance, must not be overlooked as mayors seek to address regional needs.

“Young people need to see the full breadth of opportunity available through apprenticeships. This is true in accountancy, where AAT research found that many are deterred by negative perceptions, with almost a quarter (23%) believing the industry was for people from higher socio-economic backgrounds. It’s only through shining the light on all options available to young people that we stand a chance of making Healey’s ‘generation hope’ a reality.”

Jude Hillary, Co-Head of Policy and Practice at the NFER, said:

“We welcome the Government’s focus on creating more apprenticeships for young people and re-establishing the Union Learning Fund.

“We look forward to seeing more details about these proposed measures in the near future.”