The announcement, made jointly by the Department for Work and Pensions and the Department for Education, includes new financial support for apprentices, additional college places and increased incentives for employers recruiting young people.

Key measures announced

The package includes:

• A new bursary of up to £4,500 per year for eligible households to help remove financial barriers to apprenticeships.
• Fully funded apprenticeship training for eligible under-25s from 1 August 2026.
• Up to £8,000 of support for SMEs recruiting young apprentices.
• More than 22,000 additional college places to expand access to skills and technical training.
• A £2,000 hiring bonus for smaller firms recruiting under-25 apprentices from October 2026.

The government says the measures are designed to strengthen links between education and employment, helping more young people gain the skills and experience needed for successful careers while supporting economic growth.

Support for employers

For employers, particularly SMEs, the announcement provides additional incentives to invest in apprenticeships and workforce development.

Fully funded training for eligible young apprentices, combined with employer support payments and existing National Insurance contribution relief for apprentices under 25, is expected to reduce recruitment and training costs for businesses.

The government has stated that these reforms will support the creation of 50,000 new youth apprenticeships by the end of the current Parliament.

Expanding opportunities for young people

The new bursary is intended to support families who might otherwise face financial barriers when a young person starts an apprenticeship.

Alongside increased funding for colleges and training providers, the measures form part of a wider programme of reforms aimed at improving access to technical education, vocational training and work-based learning opportunities.

The government is also investing a further £287 million to create additional places across colleges and post-16 providers, supporting the delivery of skills training in sectors where employer demand is growing.

Find out more

Further details about the announcement, including eligibility criteria and implementation timelines, are available here.

For employers interested in developing their future workforce through apprenticeships, work experience, T Levels and other skills initiatives, Buckinghamshire Business First and Bucks Skills Hub offer a range of support and resources to help businesses connect with local talent.