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Firms in England may pay more to train older workers than young apprentices

The government is reportedly considering plans to increase the cost of training for workers over 25 to encourage businesses to train young people.

  • Employers in England may face a 25% increase in training costs for workers over 25.
  • The proposed change aims to reverse a 40% drop in youth apprenticeship starts over the past decade.
  • The measure is reportedly under consideration for a phased launch from September 2027.

Employers in England could be required to pay more to train older workers than youth apprentices under new government plans. Ministers are reportedly considering an overhaul of the apprenticeship funding scheme to address a youth jobs crisis.

The proposed changes would increase the cost of training by 25% for a worker over the age of 25. This aims to encourage businesses to train young people instead, following a 40% decline in youth apprenticeship starts over the last decade.

Under the planned changes to the growth and skills levy, employers in England would face a new "co-investment" rule. While funds would still cover eligible training costs for apprentices aged 16 to 24, for older apprentices, the levy would cover only 75% of the cost, with employers paying the remainder. The measure is believed to be under consideration for a phased launch from September 2027.

A Department for Work and Pensions spokesperson stated that the government is determined to address the decline in apprenticeship starts among young people and is already pivoting the system towards the next generation. This includes creating 50,000 additional apprenticeships for young people and introducing a £2,000 hiring payment for SMEs taking on a 16-24-year-old apprentice.

Why this matters: The proposal aims to address a significant drop in youth apprenticeship starts and a rise in young people not in education, employment, or training.

What this means for you: If you are an employer in England, you may face increased training costs for apprentices over 25 from September 2027. If you are a young person aged 16-24, these changes aim to increase apprenticeship opportunities for you.

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