Make UK warns apprenticeship fee hike for older workers could stall youth jobs
Employers argue that shifting 25% of training costs for staff over 25 onto their own payrolls undermines government plans to reduce youth unemployment.
By Charlotte Dubois ·
Major UK employers have cautioned the government that raising the price of training workers over 25 could undermine efforts to cut youth unemployment. The proposal, drafted ahead of this week's budget, would require businesses to cover 25% of the cost for apprentices aged 25 and older in England.
Currently, companies can use their annual contribution to the growth and skills levy to pay the full price of apprenticeship training. Under the new rules, that levy would only cover 75% of the cost for older workers. The remaining quarter would need to be paid out of pocket by the employer.
Robert Halfon, executive director of policy at the manufacturing group Make UK, argued the move shifts existing opportunities rather than creating new ones. He stated that while getting young people into work is a moral and economic imperative, making it costlier to train older staff is not the solution. Halfon urged Chancellor John Healey to expand the total number of apprenticeships instead of restricting training for older adults.
The change aims to rebalance a system where workers over 25 currently account for more than half of new apprenticeship starts. Ministers want to direct more resources toward young people, particularly the one million individuals aged 16 to 24 who are not in education, employment, or training.
John Foster, chief policy and campaigns officer at the CBI, warned against treating skills as a zero-sum game. He noted that training older workers remains vital for helping people update their skills mid-career, especially as artificial intelligence reshapes the workplace.
Ben Rowland, chief executive of the Association of Employment and Learning Providers, emphasized that any changes must involve employers closely. He described abrupt shifts as a danger to the system's stability. Kate Shoesmith, director of policy and insights at the British Chambers of Commerce, added that firms need flexibility to invest in skills at every career stage while dealing with rising business costs.
A government spokesperson said the reforms are backed by £3.3 billion to deliver 50,000 additional apprenticeships for young people. This includes a £2,000 hiring payment for small and medium enterprises that take on a 16 to 24-year-old apprentice. The government will await the findings of the Milburn Review, due this autumn, before finalizing the details.
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