Key facts
- Employers in England may face a 25% increase in training costs for workers over 25.
- The government aims to reverse a 40% drop in youth apprenticeship starts over the past decade.
- The proposal is part of a response to Alan Milburn's review on youth unemployment.
- The changes are being considered for the growth and skills levy.
- For older apprentices, funds would cover only 75% of training costs, with employers paying the remainder.
The UK government is reportedly planning to overhaul its apprenticeship funding scheme to encourage businesses to train younger workers. Under the proposed changes to the growth and skills levy, employers in England would face a higher cost for training apprentices over the age of 25. This measure aims to address a significant drop in youth apprenticeship starts over the past decade and is part of the government's response to a review on youth unemployment. The proposal is controversial as employers were previously given flexibility in spending their levy funds. The government is also considering a new hiring payment for small and medium-sized enterprises that take on young apprentices.