Last month saw a series of skills and employment policy announcements, backed by major investment, including a £2.5 billion Youth Deal and an increase in the apprenticeship budget to £3.3 billion by 2026-27. Taken together, these reforms signal a renewed focus on tackling youth unemployment and strengthening employer-led pathways into work.
Based on our discussions with employers, we believe these changes present a significant opportunity to improve access to employment and skills. Their success, however, will depend on how effectively they are delivered in practice and whether they reflect the realities of the labour market.
A renewed focus on youth employment
The scale of the challenge remains significant, with around 957,000 young people aged 16–24 currently not in education, employment or training (NEET), while apprenticeship starts among young people have fallen by approximately 40% over the past decade.
In response, the Government has set out a £1 billion youth employment drive expected to create up to 200,000 jobs, alongside wider measures aiming to support almost one million young people and deliver up to 500,000 opportunities to earn or learn.
Alongside this, new employer incentives, expanded job guarantee schemes and subsidised placements aim to support more young people into work and training. These measures provide a stronger foundation, but sustained impact will depend on how far they translate into real, accessible opportunities.
Employers at the centre of delivery
The focus on incentives is a positive step, recognising the central role that employers play in creating opportunities for young people. However, incentives alone will not drive sustained recruitment. They are an important step but will not by themselves create the conditions for long-term job creation.
Wider business conditions, including rising employment costs, wage pressures and regulatory requirements, continue to shape hiring decisions. Creating the right overall environment for growth remains critical to ensuring that these measures lead to lasting outcomes.
Stability and confidence in the system
Confidence in the skills system underpins long-term investment. Frequent changes to apprenticeships and skills policy make workforce planning more challenging, particularly where training commitments span several years.
Recent reforms to the Growth and Skills Levy aim to better align investment with economic priorities, alongside changes to apprenticeship standards. While the direction of travel is clear, stability and clarity will be essential. Reforms should be given time to embed and be properly evaluated.
Progression, flexibility and what works in practice
The effectiveness of the system will depend on how well it reflects real workplace needs.
There is strong interest in shorter, more flexible training options for adults aged 19+, particularly where these support upskilling and progression within the workforce. These must be designed in partnership with employers and grounded in real job settings. Prescriptive models that do not reflect how learning happens in practice risk limiting take-up and reducing impact.
Clear progression routes into higher-level roles are essential, particularly in growth sectors. Pathways that support staff development, improve retention and create space for new entrants as individuals progress are critical to maintaining engagement and ensuring the long-term credibility of vocational routes.
Strong leadership and management capability also remains a key enabler, particularly in supporting young people and early career staff as they enter and progress in the workforce.
A system-wide approach to supporting young people
Supporting young people into work requires more than technical training alone. Workplace readiness, including communication, confidence and reliability, is a critical factor in successful outcomes.
Wider barriers such as mental health, transport costs and personal circumstances also affect access to and progression in work. Addressing these challenges requires a more tailored approach, with flexible pathways that reflect the different needs of young people. Modular entry points that lead clearly into sustained employment or apprenticeships could be an important part of this.
Looking ahead
Clarity, stability and effective implementation will be key to ensuring reforms translate into sustained opportunities for young people. Early visibility of future policy direction will be important to support long-term planning and investment, alongside confidence that recent reforms, particularly around flexible training and progression pathways, will work in practice.
The priority now is ensuring that these measures deliver meaningful, accessible routes into employment while creating the conditions for employers to invest, grow and support young people.