A new package aims to create 50,000 additional apprenticeship opportunities for young people, remove SME co-investment for eligible under-25s, and introduce more flexible training from April 2026.
What’s been announced
The government has published details of a £725 million reform package intended to boost apprenticeships for young people over the next three years, with a focus on matching training to local labour market needs. The announcement includes a £140 million pilot with mayoral/local leaders to connect young people – especially those not in education, employment or training (NEET) – to apprenticeship opportunities with local businesses.
Make the new apprenticeship reforms work for your business
Key changes for businesses
- SMEs: training fully funded for eligible under-25 apprentices
The government says it will cover the full training cost for eligible under-25 apprentices at SMEs. This means that if you own an SME you no longer need to pay a 5% training cost for eligible apprentices aged under 25. - Foundation apprenticeships
A new wave of foundation apprenticeships is expected in sectors including hospitality, retail, construction, engineering, manufacturing, social care and digital, supporting young people into work. - More flexibility from April 2026
From April 2026, the reforms include shorter, flexible training options in areas such as AI, engineering and digital skills, plus a new Level 4 AI apprenticeship.
Why this matters now
Youth participation and progression is a major policy focus, and this package sits alongside wider “get Britain working” measures and the Youth Guarantee. For businesses, the practical implication is clear: the funding landscape is shifting toward entry routes and work-based progression, with more emphasis on local skills priorities and faster, more flexible training options.
What businesses should do next (a practical checklist)
- Identify 3–5 “make-or-break” roles where skills gaps hit productivity, quality or service
- Decide if you’re solving for hiring, progression, or retention (or all three)
- Map roles to funded pathways (including leadership and specialist routes)
- Check your levy position and build a simple 90-day plan to deploy it effectively
How we can help you move faster
At Seetec we support young people and adults who are NEET through our Careers Advice and Guidance services and employability programmes including Connect to Work and Restart so we can help you move faster; linking you to candidates and wrapping recruitment with the right pre-employment preparation and in-work progression alongside your training plan. We also deliver a wide range of apprenticeships and short, modular training aligned to priority skills shortages, so you can build capability quickly where it matters most.
If you’d like help turning this into a plan, we’re offering Levy & Workforce Planning Calls (20–30 mins) to map levy, roles and funded pathways quickly and pragmatically.
Book your call: by contacting: training@seetec.co.uk
We’re also running a Funding Changes Webinar on Thursday 8th January 2026 2pm. Which you can book by clicking here.
