Plan to make firms pay more to train older workers than youth apprentices in England
Exclusive: Ministers considering overhaul of apprenticeship funding scheme to tackle youth jobs crisis Employers in England are to be forced to pay more to train an older worker th
By The Guardian
Employers in England could be required to pay more towards apprenticeship training for workers aged over 25 under government plans aimed at increasing the number of young people starting apprenticeships.
The proposal would see training for older apprentices cost employers an additional 25%, while eligible training for those aged between 16 and 24 would continue to be fully funded.
The plans would involve changes to the Growth and Skills Levy, which replaced the former apprenticeship levy. Under the proposed system, the government would cover 75% of eligible training costs for apprentices aged over 25, with employers paying the remaining 25%.
Ministers are considering the change as part of efforts to address a long-term fall in youth apprenticeship starts. Reports indicate that starts among young people have dropped by about 40% over the past decade, while more than half of new apprentices are now aged over 25.
A phased introduction is being considered from September 2027, although the proposal has not been confirmed as final government policy.
The Department for Work and Pensions said the government was already shifting the apprenticeship system towards younger workers. Measures include plans to create 50,000 additional apprenticeships for young people and a £2,000 hiring payment for small and medium-sized businesses taking on an apprentice aged 16 to 24.
The existing levy requires large employers with annual payrolls above £3 million to contribute 0.5% of their payroll. Levy funds can then be used to pay for apprenticeship training and assessment.
The proposed changes would make older apprenticeships more expensive for employers where levy funding does not cover the full cost, while removing training costs as a barrier for eligible apprentices aged under 25.