Britain plans to make training workers over 25 25% more expensive — The Guardian

In the United Kingdom, ministers plan to revise apprenticeship funding in England to increase companies’ costs of training workers over the age of 25 by 25%. The aim of the changes is to encourage employers to train younger workers more often, The Guardian reports.

Co-funding proposal

The proposal, which has not yet been finally approved, was prepared ahead of Wednesday’s budget announcement. It could become part of the government’s response to Alan Milburn’s review of the reasons behind high youth unemployment.

Under the current plan, employers will be able to fully pay for the training of an apprentice under the age of 25 using contributions to the growth and skills levy. This is a £4 billion-a-year tax that funds the national apprenticeship system. For older workers, levy funds will cover 75% of costs, while employers will pay the remainder separately.

The government seeks to change the balance of the system because people over 25 account for more than half of new participants in apprenticeship programmes. At the same time, the number of young people starting apprenticeships has fallen by 40% over the past decade.

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Business position

Business representatives have called on the government to reconsider the plan. Robert Halfon, executive director of policy at the industrial group Make UK, said the change would merely redistribute existing opportunities rather than create new ones. In his view, the government should increase the number of available apprenticeship programmes rather than restrict training for other categories of workers.

John Foster, a representative of the Confederation of British Industry, stressed that vocational skills should not be a “zero-sum game”. According to him, adult training helps people update their qualifications throughout their careers, particularly amid the impact of artificial intelligence on jobs.

Measures for young people

The government said the reformed system is backed by £3.3 billion in funding to provide 50,000 additional apprenticeship places for young people. Small and medium-sized enterprises will also receive a £2,000 payment for hiring an apprentice aged 16 to 24.

There are around 1 million people aged 16 to 24 in the country who are not studying, working or undergoing vocational training. During the first eight months, only 160 young people joined the foundation apprenticeship programme, while the government’s target for the current parliamentary term is 30,000 enrolments. The government expects the findings of the Milburn review in the autumn.