Plan to make firms pay more to train older workers than youth apprentices in England

Employers in England are set to face increased costs for training older workers compared to youth apprentices as part of a government initiative aimed at addressing the youth jobs crisis. The Guardian has learned that ministers are planning to overhaul the apprenticeship funding scheme initiated by Labour, proposing a 25% increase in training costs for workers over the age of 25 to encourage businesses to prioritize training for younger individuals.

This proposal comes in response to a 40% decline in youth apprenticeship starts over the past decade. It is being developed as part of the government's response to Alan Milburn's review, which examines the high levels of youth unemployment. Milburn's final report has been delayed until after the upcoming budget, but he has indicated that improving access to apprenticeships is crucial for helping young people enter the workforce.

Chancellor John Healey is expected to include measures to combat rising youth unemployment in his forthcoming tax and spending statement, scheduled for less than two weeks from now. The number of young people not engaged in education, employment, or training has surged to nearly 1 million. Andy Burnham, a prominent political figure, has made it a priority to enhance job opportunities for youth, advocating for significant reforms in technical education and apprenticeships.

Ministers have expressed a clear intention to shift the apprenticeship system back in favor of younger individuals. Currently, more than half of new apprenticeship starts are for those over 25, while enrollment for those under 19 has nearly halved in the last decade.