British Employers Question Proposed Cost Increases for Older Apprenticeship Training

LONDON — Britain’s largest employers have raised concerns over government proposals to increase apprenticeship training costs for workers over the age of 25 in England by 25%.

According to reports, the proposed overhaul forms part of broader government plans to tackle a youth jobs crisis and address the needs of 1 million 16- to 24-year-olds who are not in education, employment or training, known as Neet. Over-25s currently account for more than half of all new apprenticeship enrolments.

The funding mechanism is tied to the growth and skills levy, a £4bn-a-year tax used to finance the national apprenticeship system. Chancellor John Healey is widely tipped to announce measures to bolster opportunities for young people in the upcoming budget, alongside the government’s response to a review led by Alan Milburn into youth unemployment. Over the past decade, youth apprenticeship starts have experienced a 40% drop.

Business leaders and lobby groups, including Make UK, the CBI, the British Chambers of Commerce, and the Association of Employment and Learning Providers, have criticized the measure. Critics argue that raising training costs for older workers will create new barriers rather than new openings.

“It will just mean opportunities are shifted around instead of creating new ones,” said Robert Halfon. “We agree that getting young people back into employment and training is a moral and economic imperative. But making it more expensive for employers to train older workers isn’t the answer.”

John Foster added, “We can’t make skills a zero-sum game.” While acknowledging the focus on young people who are Neet, Foster noted that adult training plays a vital role in entry-level opportunities and mid-career adaptation, particularly as artificial intelligence reshapes the workplace.

Conversely, the Fabian Society defended the necessity of targeted funding shifts. Joe Dromey stated that tackling youth unemployment requires making difficult public funding choices, noting that such decisions may prove unpopular with businesses.