Budget 2025 round-up
Big boost for skills, training and apprenticeships
Following the budget announcement this week, we asked Corrina our Managing Director to give us the highlights which will impact the training sector.
We’ve seen significant investment and changes aimed at tackling youth unemployment and strengthening workforce skills. With £1.5 billion committed through the Growth and Skills Levy and the new Youth Guarantee, these measures are designed to reduce the high number of young people currently not in education, employment or training (NEET) – estimated at around one million
We’ve seen significant investment and changes aimed at tackling youth unemployment and strengthening workforce skills. With £1.5 billion committed through the Growth and Skills Levy and the new Youth Guarantee, these measures are designed to reduce the high number of young people currently not in education, employment or training (NEET) – estimated at around one million
Youth Guarantee: Support for every young person
Under the Youth Guarantee, every young person aged 16–24 will have access to support to earn or learn, ensuring no one is left behind. For those aged 18–21, this includes a six-month funded work placement, a welcome step towards helping young people gain valuable experience and transition into employment.
Growth and Skills Levy (formerly Apprenticeship Levy):
Government will now be fully funding apprenticeships for those aged under 25 working at an SME – this is fantastic announcement and will be really well received by our SME employers who currently have to fund 5% of the costs.
However, there are some challenges for larger employers:
Levy funds will now expire after 12 months instead of 24. For levy payers who exhaust their funds, the government contribution will drop from 95% to 75%, increasing costs for additional apprenticeships.
However, there are some challenges for larger employers:
Levy funds will now expire after 12 months instead of 24. For levy payers who exhaust their funds, the government contribution will drop from 95% to 75%, increasing costs for additional apprenticeships.
Other key changes
The Budget also referenced a number of flexibilities in apprenticeships that had already been announced but were referenced again including:
- Assessment reforms to cut duplication and speed up completion. We see this as a positive move and are working closely with our end-point assessment organisations to plan how this will work when it is formally introduced next year. This should mean a more streamlined process for our apprentices and employers.
- Foundation Apprenticeships at Level 2 have been introduced in a small number of sectors. We’re keen to see this expand to cover more sectors we work in so we are able to support more learners looking for their first steps into employment.
Our commitment
At Access Training, we welcome these initiatives and remain committed to supporting young people into training and employment. We already work with hundreds of learners and understand how challenging the transition from education or unemployment can be. That’s why we provide additional mentoring for younger apprentices during their first six months, helping them settle into the workplace and succeed in their programmes.
We look forward to seeing more details on the Youth Guarantee next year and hope to see funding for activities like mentoring included.
We look forward to seeing more details on the Youth Guarantee next year and hope to see funding for activities like mentoring included.
