What the Government's New Apprenticeship Package Means for Employers and Young People

The government has just announced one of the most significant packages of apprenticeship support in a generation and if you are an employer or a young person considering an apprenticeship, there is a lot in it worth knowing about.

The package covers three main areas: new financial support for young people who have previously faced barriers to taking up an apprenticeship, thousands of additional college places to expand access to skills and training, and a significant uplift in support for employers hiring young apprentices. Together, these measures are designed to help deliver 50,000 new youth apprenticeships by the end of this Parliament and to ensure that cost is no longer the reason a young person misses out.

One of the most notable elements of the announcement is the introduction of a new bursary worth up to £4,500 per year per household, aimed at removing a financial barrier that has quietly discouraged some young people from taking up apprenticeships. Under the current system, Universal Credit families can lose significant benefit income when a young person starts an apprenticeship, in some cases more than the apprenticeship salary itself. A Social Security Advisory Committee report found that single parents with a disabled child could lose up to £340 per week in benefits when a young person started an apprenticeship, compared to an expected apprenticeship salary of £258 per week. The new bursary is designed to address that shortfall directly, so that a young person’s decision about whether to take up an apprenticeship is based on their ambitions rather than their family’s finances.

From 1 August 2026, apprenticeship training for all eligible under-25s will be fully funded by the government. This is a significant change and one that removes another barrier that has historically made some employers hesitant about taking on younger apprentices. The cost of training will no longer be a reason not to invest in a young person’s development.

For smaller businesses, the financial case for hiring a young apprentice has rarely been stronger. From October 2026, SMEs will receive a £2,000 hiring bonus for taking on under-25 apprentices, sitting alongside the existing £3,000 Youth Jobs Grant for eligible young people aged 18 to 24 who have been on Universal Credit for six months or more. For the right hire, these can be accessed alongside each other, meaning the combined government support available to a smaller employer recruiting a young apprentice could reach up to £8,000. There is also National Insurance relief on eligible earnings for apprentices under 25, which further reduces the cost of employment for businesses of all sizes.

The wider context for this announcement is significant. There are currently over one million young people in England who are not in education, employment or training, representing around one in eight young people. The government’s own data suggests that of those who have been NEET for more than a year, only 25 percent return to participation the following year, compared to 65 percent of those who have been NEET for less than a year. Early intervention through apprenticeships and expanded college provision is therefore not just good for individuals. It is an economic priority.

The announcement also includes a further £287 million to create over 22,000 additional places across colleges and post-16 providers in England, covering 87 projects including an expansion of construction courses to help more young people train for roles in bricklaying, plumbing, decorating and other skilled trades. This sits alongside a broader government commitment to end what Education Secretary Lucy Powell described as the snobbery around hands-on learning, making technical education every bit as valued as the academic route.

For employers across the sectors we work with, including sport, health and fitness, education, childcare and business administration, this package creates a genuine and well-supported opportunity to bring young talent into your organisation at a time when the financial and practical barriers to doing so have never been lower.

At Educationwise, we work with employers across the country to support apprenticeship recruitment and delivery. We are an Ofsted Outstanding training provider and we offer a completely free recruitment service, which means we handle the advertising and shortlisting for your vacancy and guide you through every stage of the funding process so you are not navigating it alone.

If you are an employer thinking about hiring a young apprentice and want to understand what the new support means for your business, or if you would simply like help finding the right person for your team, get in touch with us today at info@education-wise.org or call 01173 790 450. We are always happy to help.