The Government has unveiled a £725m overhaul of the apprenticeship system, promising 50,000 more placements over the next three years.

The move, which was revealed today (8 December), aims to see retail, hospitality and other service sectors benefit from new foundation apprenticeships aimed at tackling youth unemployment and widening access to training.

The reforms include fully funded apprenticeship training costs for eligible under-25s at SMEs, removing the 5% co-investment contribution that many smaller retailers have previously claimed to be a barrier to hiring young talent.

Ministers say the change will make it significantly easier for businesses to bring in and train entry-level staff.

It is also understood that a £140m pilot will give metro mayors the power to match young people, particularly those not in education, employment or training, with apprenticeships at local employers.

The aim is to align training with regional labour needs, including in sectors facing serious recruitment challenges such as retail.

Prime minister Keir Starmer said apprenticeships must be put “on an equal footing with university”.

“For too long, success has been measured by how many young people go to university,” said Starmer. “That narrow view has held back opportunity and created barriers we need to break.

“If you choose an apprenticeship, you should have the same respect and opportunity as everyone else. This is a defining cause for this government and a key step towards our ambition to get two-thirds of young people in higher-level learning or apprenticeships.”

Federation of Small Businesses executive director Craig Beaumont, said: “Small businesses are incredibly enthusiastic about apprenticeships, and we are pleased the Government is taking steps to make the system more small business friendly.

“It will help unlock more local roles, meaning small firms can do what they do best, taking people on and giving them a great chance in life.”

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