What is the UK government doing about youth unemployment?

The government is launching a £725 million program to expand apprenticeships for young people.

Which sectors will the new apprenticeship program focus on?

The program will focus on sectors including AI, hospitality, and engineering.

How does the UK apprenticeship package help small businesses?

Small and medium-sized businesses will have apprenticeships for under-25s fully funded.

Home / Business and Economy / UK Tackles Youth Unemployment with Major Apprenticeship Fund

UK Tackles Youth Unemployment with Major Apprenticeship Fund

8 Dec, 2025

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Summary

A £725 million, three-year package aims to boost apprenticeships.
Program targets sectors like AI, hospitality, and engineering.
SMEs will receive fully funded apprenticeships for under-25s.

UK Tackles Youth Unemployment with Major Apprenticeship Fund

The government is injecting £725 million over the next three years into a comprehensive program designed to expand apprenticeship opportunities and address rising youth unemployment. This substantial investment is anticipated to benefit around 50,000 young individuals nationwide.

Central to the strategy is the full funding of apprenticeships for those under 25 employed by small and medium-sized businesses. This measure removes the current 5% contribution required from these companies, making apprenticeships more accessible and attractive.

The program specifically targets growth sectors such as artificial intelligence, hospitality, and engineering. The initiative aims to counteract a concerning trend of a nearly 40% decrease in young people starting apprenticeships over the last decade, seeking to revitalize vocational training.