Major employers have told ministers that plans to increase the cost of training staff aged over 25 could backfire on the government’s drive to reduce youth unemployment.
According to the Guardian, ministers are preparing an overhaul of the apprenticeship funding system introduced under the Labour government that would raise the cost of training a worker over 25 in England by around 25 percent. The stated aim of the change is to incentivise firms to offer more places to younger people.
Employers' concerns
Businesses representing some of Britain’s largest employers have warned ministers that penalising training for older staff risks unintended consequences. They say higher charges for over‑25s could constrain companies’ training budgets and reduce the overall number of apprenticeship places, undermining efforts to broaden access to work-based learning.
Government plan and rationale
Officials are understood to be seeking ways to steer apprenticeship funding toward younger trainees as part of a broader strategy to tackle the youth jobs crisis. Proponents of the change argue that directing subsidies to younger people will increase entry-level opportunities and help address unemployment among recent school and college leavers.
Potential wider impacts
Critics of the proposal caution that making training more expensive for older workers could also limit opportunities for adults seeking to reskill or upskill, with implications for workforce flexibility and long-term career progression. Employers say an effective approach must balance support for young entrants with routes for adult retraining so that firms can maintain a skilled and adaptable workforce.
It remains unclear when ministers might publish detailed proposals or consult formally with industry and stakeholders on the planned funding changes.