Government announces major youth employment drive and apprenticeship reforms

The UK Government has announced a national initiative aimed at creating 200,000 jobs and apprenticeships for young people, backed by £1 billion of additional investment as part of a wider plan to tackle rising youth unemployment and expand routes into work.

The announcement forms part of what ministers describe as the biggest transformation of apprenticeships in a decade, with reforms designed to prioritise opportunities for young people entering the labour market.

A stronger focus on young people entering work

The initiative focuses on supporting young people aged 16 to 24 who are not currently in education, employment or training (NEET). Nearly one million young people fall into this category across the UK, with youth unemployment rising in recent years.

Key elements of the government’s announcement include:

• £1 billion investment to support job creation, training and skills development, particularly in sectors such as hospitality and retail where many young people begin their careers.
• A national target of 200,000 new jobs and apprenticeships, helping more young people move from education into employment and into industries that offer clear career progression.
• A £3,000 Youth Jobs Grant for employers who hire eligible young people aged 18–24 who are currently receiving Universal Credit, helping hospitality businesses create opportunities for young people entering the workforce.
• Expansion of the Jobs Guarantee scheme, providing additional training and employment opportunities for young people who are not currently in education, employment or training.
• Incentives of £2,000 for small and medium-sized hospitality businesses to recruit apprentices aged 16–24, supporting the sector to attract and develop the next generation of talent.

The programme is intended to ensure more young people can move directly from education into employment, while helping employers access new talent and address workforce shortages.

Foundation apprenticeships and new training pathways

As part of the reforms, the government will expand foundation apprenticeships into additional sectors including hospitality and retail. These programmes are designed to support young people aged 16–21 to gain the skills, experience and confidence needed to start their careers.

Employers will also see new incentives to create entry-level opportunities, including financial support for taking on young apprentices.

Alongside these changes, the government is introducing new apprenticeship units aligned to priority industrial strategy areas such as artificial intelligence, engineering, clean energy and construction.

What this means for hospitality employers

The reforms signal a clear policy direction towards:

• Increasing participation among young people entering the workforce
• Expanding entry-level routes into employment
• Supporting employers to recruit and train the next generation of talent

Alongside these reforms, the government has confirmed that some apprenticeship standards will be removed from the funded system from September as part of efforts to streamline the apprenticeship system and prioritise opportunities for young people entering work.

Core hospitality apprenticeships remain unaffected, and the sector is increasingly recognised as a key route for supporting young people into work. This places hospitality employers in a strong position to benefit from the shift towards a youth-first apprenticeship system.

For hospitality businesses, apprenticeships continue to offer a practical way to build skills, develop teams and create long-term career pathways within their organisations.

Supporting employers and learners

At HIT Training, we continue to support hospitality and retail employers across England to navigate changes to the apprenticeship system.

We will be working closely with employers over the coming months as further guidance on these reforms is released, helping organisations understand what the changes mean and how they can continue to develop their workforce through apprenticeships and skills programmes.

If you would like to discuss apprenticeships or workforce development in your organisation, our team would be happy to help.

What else is changing in apprenticeships?

Several apprenticeship reforms are already in place, with further structural and funding changes expected during 2026.

Changes already introduced

• English and maths reform – Adult apprentices aged 19+ no longer need to pass standalone English and maths qualifications to complete their apprenticeship.
• Minimum duration change – The minimum length of an apprenticeship has reduced from 12 months to 8 months where appropriate.
• Assessment changes – Assessment plans are being re-structured to allow more proportionate and flexible assessment, including elements delivered during the programme.
• Level 7 funding reform – From January 2026, Level 7 apprenticeships are only funded for learners aged 16–21 (or under 25 for care leavers or those with an Education, Health and Care Plan).
• Foundation apprenticeships – New Level 2 Foundation Apprenticeships have launched in selected sectors and are expected to expand further.

From April 2026

• Apprenticeship units – Modular “apprenticeship units” will begin to launch in selected priority sectors, offering shorter and more flexible training options alongside full apprenticeships.

From August 2026

Several further funding and levy reforms are expected to take effect:

• Under-25 funding expansion – Non-levy employers will receive fully funded apprenticeships for eligible learners under 25.
• Levy top-up removed – The additional 10% government top-up to levy accounts will end.
• Levy expiry reduced – Levy funds will expire after 12 months instead of 24 months.
• Employer co-investment increases – Employers who exhaust their levy funds will co-invest 25% of training costs (up from 5%), with the government contributing the remaining 75%.