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Apprentices: Reform

Answer

This Government is transforming the Apprenticeships Levy into a new Growth and Skills Levy in England, backed by £1 billion of additional investment, giving employers greater flexibility, including within the engineering and manufacturing sectors, creating more opportunities for young people, and directly supporting the Industrial Strategy.

In April 2026, we launched the first apprenticeship units focussing on priority sectors including in engineering and manufacturing. These short courses will help employers upskill their workforces quickly and flexibly.

Additionally, we have introduced new foundation apprenticeships, to give young people a route into careers in critical sectors, enabling them to earn a wage while developing vital skills. The first foundation apprenticeships were focussed on industrial strategy and priority areas including engineering and manufacturing. They are underpinned by an employer incentive payment of £2,000 to contribute to the extra costs of supporting someone at the beginning of their career.

More widely, to support non-levy paying employers (typically SMEs) to meet the additional costs associated with employing young apprentices, we are introducing a new apprenticeship hiring payment of £2,000 when they take on eligible 16–24-year-old apprentices, at all levels, as new employees.

The government will also fully fund apprenticeship training for non-levy paying employers for all eligible young people aged under 25 from the next academic year, to boost small business starts. At the moment, this only happens for apprentices aged 16 to 21 and apprentices aged 22-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care.

Secondary information

Type

Written question

Reference

15203

Session

2026-27

Transferred

Yes

Subjects

Apprentices Employment Engineering Manufacturing industries Reform

Link

View this Written question on www.parliament.uk