Shifting the Apprenticeship Focus on Young People is a Positive Step

Extra funding incentives for employers and new foundation apprenticeship sectors among the raft of new reforms from the DWP to support young people

The government’s reforms to apprenticeships and employment support aim to help more young people into work, but further action is needed

Currently, close to 1 million young people in England are not in education, employment, or training (NEET), making up approximately 12% of all 16–24‑year‑olds.

This week’s announcement marks incremental progress toward supporting both young people and employers. Earlier in the week, the government detailed plans to expand foundation apprenticeships within the Hospitality and Retail sectors and introduced the Level 2 administration assistant apprenticeship. Additionally, new financial incentives have been launched to encourage employers to recruit young talent.

The measures from the Department for Work and Pensions to support young people include:

• A £3,000 grant for employers for each unemployed young person aged 18 to 24 they hire.
• SMEs will also receive an apprenticeship incentive payment worth £2,000 for each 16- to 24-year-old hired.
• The Jobs Guarantee’s current upper age cap of 21 will be raised to 24 in August, which means the number of young people hoped to benefit from the scheme will rise from 55,000 to 90,000 over the next three years.
• A new level 2 administration assistant apprenticeship will be available from August to learners aged under 25.
• Expansion of Foundation Apprenticeships into Hospitality and Retail

Melanie Nicholson, Managing Director of Total People and MOL, both part of the LTE Group, said:

“We recognise the importance of concentrating efforts on apprenticeships to facilitate young people’s access to education and employment. Currently, the number of young people not engaged in employment or full-time education approaches one million. Given ongoing constraints on apprenticeship funding, it is appropriate that investments are directed towards supporting these groups.

“While the latest announcements are encouraging and represent progress, additional measures are necessary to guarantee stability. We look forward to partnering with employers of all sizes to open up opportunities for young people in key sectors. We will work with colleagues across LTE Group to help as many individuals as possible find jobs and advance their careers.”

The DWP has said that the latest announcements reflect its commitment to ensuring every young person aged 16-24 has the opportunity to earn or learn. The plans are designed to support almost one million young people and help deliver up to 500,000 opportunities to earn and learn.

Work and pensions secretary Pat McFadden said:

“These measures will give life-changing opportunities to young people and significantly reverse the increase we inherited in those not in education, employment or training.

“We are focusing funding where it’s needed most and giving employers the flexibility and support they’ve asked for.

“These reforms will give young people a vital first step on the career ladder and help business leaders recruit the talent that will grow their companies.”