The government announced yesterday (27 May) that it will defund postgraduate-level (Level 7) apprenticeships from January 2026, add 32% to the amount that employers pay to recruit from outside the UK, and redirect resources to support apprentices aged 16 to 21.
The plan is part of a £3bn ‘apprenticeship budget’ that the government says “will open up opportunities for young people to succeed”.
Speaking to HR magazine, Jonathan Bourne, managing director of apprenticeship provider Damar Training, explained that “withdrawing funding from masters' level apprenticeships means that employers and providers will now put additional energy into apprenticeships for entry-level roles more suited to younger people".
Commenting exclusively for HR magazine, Patrick Philpott, founder of the early talent firm, Visionpath, added: “This is really good news for young people. Apprenticeships are a great way for young people to earn, learn and build their careers. Any changes that unlock more opportunities can only be a good thing.”
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Di Gwinnell, chief people officer for apprenticeship training provider Lifetime, told HR magazine: “We are confident that the government’s refocus of apprenticeship funding on young people and early career pathways will be a powerful tool in helping school leavers and those not in education, employment or training get their foot on the career ladder.
“Ultimately, all programmes that widen the talent pool and break down barriers to work are always welcome. Funding that enables social mobility and encourages diversity of new hires can only have a positive impact for businesses who are struggling to attract the talent they need to deliver their goals.”
As part of its new pledge, the government has allocated £136m to create ‘skills bootcamps’, and is set to provide 13 new Level 2 construction courses for adults in non-devolved areas. Young people are also “set to benefit from 120,000 new training opportunities as part of a radical skills revolution”, the government’s spokesperson pledged.
The CIPD’s senior skills adviser Lizzie Crowley also welcomed the news, but emphasised that “a more ambitious approach is needed to genuinely expand opportunities and rebalance the system in favour of young people, including an apprenticeship guarantee for 16 to 24 year olds".
Gwinnell pointed out that this latest news follows last month’s government announcement of the first foundation apprenticeship, “which will provide the building blocks of confidence, income, and skills, especially in sectors like health and social care where entry-level talent is urgently needed”.
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She added: “Success will depend on ensuring that employers have the support and incentives to take on young people, and that the right learners are on the right programmes with the right progression routes.”
Philpott emphasised that all types of apprenticeships should be valued: “For these changes to really make a difference”, he said, "there needs to be more awareness of the value of apprenticeships at all levels. Degree-level apprenticeships rightly get lots of attention but there are so many great opportunities from Level 2 up; they’re not always so well known.”
Bourne agreed: “Apprenticeships at Levels 2 and 3 have declined over recent years. This has led to fewer young people progressing to higher apprenticeships.”
Advising HR leaders on how best to support young people into work, Bourne said: “Apprenticeships perform best when they are embedded in an organisation's wider talent recruitment and attraction strategy, alongside, for example, school and college engagement, work placements, graduate programmes, and in-house training. Think about your organisation's values and how well aligned they are – or not – with young people.
“Be authentic: values and purpose matter to Gen Z; but don't try and please everyone. Don't just think about the job on day one; sell the progression pathway and where the role could lead.”
Gwinnell added: “Collaborating with training providers early is essential to enable employers to evaluate which standard a learner is suitable for. Employers can work with providers to set clear expectations with learners from the start, explaining the programme structure including off-the-job training, ensuring greater retention.”
Read more: Make the most of apprenticeship funding as the in-work learning landscape changes
To get the best out of apprenticeships, HR leaders must implement them in the right way, said Gwinnell. “From a HR perspective, this means ensuring young people are placed on the right level programme in the right role, with the right support around them. This includes ensuring the right mentorship is in place within the company, implementing practices such as diverse hiring panels, or attending career fairs in diverse communities to ensure that there is equal opportunity.
“HR leaders must also pay attention to job descriptions, ensuring they focus on skills and potential, rather than unnecessary qualifications that may exclude candidates.”
She added that tailored induction programmes can help learners understand workplace expectations, and encouraged employers to ensure that apprentices are given protected time for off-the-job learning.
Philpott encouraged HR professionals to drive home to employers that “it’s not just about getting young people in, it’s helping them get on: creating real responsibility and mapping out progression”. It’s crucial that employers support the managers who are looking after apprentices, he stated, ensuring that they have “the skills to nurture and develop early talent so they can really thrive”.
