At a glance:
- A £3,000 grant will be introduced when employers hire someone aged 16-24 who has been unemployed and on Universal Credit for six months or more.
- The previously announced Jobs Guarantee will be expanded. Previously for those aged 18-21, the age limit has now been increased to 24.
- Foundation apprenticeships for retail and hospitality are confirmed. These will sit alongside the existing Level 2 Retailer apprenticeship.
- A very limited number of apprenticeship units have been announced from April, with more to be decided upon in the coming months.
- Leadership and management apprenticeships will have their Levy funding removed from September.
Today, the Department for Work and Pensions has set out a package of measures focusing on youth employment, alongside further reforms to the Growth and Skills Levy.
This follows a period of speculation following the Budget, where it was confirmed that some apprenticeship standards would be 'streamlined' to unlock funding for new areas of Levy funding.
The package amounts to £1 billion of funding which is largely focused on bringing 16-24 year-olds into the workplace, following news that the number of NEETs in this age bracket grew to nearly one million by the end of 2025.
As always, we are interested in hearing member views on the announcements. Please reach out to Ben with your thoughts or to discuss further.
Youth Jobs Grant
In an effort to incentive employers to hire more young people, the government will introduce a Youth Jobs Grant, providing an employer with £3,000 for each young person aged 18-24 that they hire, who have been out of work and on Universal Credit for at least six months. They have projected that this will support 60,000 young people over the next three years.
Jobs Guarantee
The Jobs Guarantee was announced last year, offering a guaranteed six-month work placement to young people who have been on Universal Credit for 18 months. Today it was confirmed that the age bracket for this guarantee will be expanded from 18-21 to 18-24. Government will subsidise 100% of these placements at the minimum wage for up to 25 hours per week.
The guarantee is being launched in phases, initially in Spring in six areas across the UK (Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland, Southwest and Southeast Wales), with a national rollout expected later in the year.
You can find more information on the Jobs Guarantee here.
Growth and Skills Levy Updates
1. Leadership and management apprenticeships defunded
Following confirmation that current apprenticeship standards available for funding under the Levy would be 'streamlined', it was announced today that it will be leadership and management apprenticeships which will be cut. The full list can be found in this article from FE Week. DWP have said this move will save around £200 million, which will be refocused on supporting young people into the workplace through the above measures.
Of primary concern is the removal of Level 3 Team Leader, used by many retailers as a key development pathway for those completing entry-level Level 2 apprenticeships.
The BRC signed the CMI petition calling for these apprenticeships to be retained - we will continue to press that young people entering the workplace for the first time need skilled leaders and managers, as well as clear pathways for their own development.
2. Foundation apprenticeships for retail and hospitality confirmed
Foundation Apprenticeships, already existing in areas such as construction, have been confirmed for the retail and hospitality sectors. These aim to provide a broad overview of a sector and are equivalent to a Level 2 apprenticeship.
Unlike traditional Level 2 apprenticeships, these are limited to those under the age of 21. With this in mind, we welcome the decision to retain Level 2 Retailer as an alternative and well-used entry level pathway for people of all ages across the industry.
Government has also confirmed an incentive scheme for foundation apprenticeships to encourage uptake, with £2,000 available for each apprentice subject to retention and progression.
3. First apprenticeship units confirmed
Seven short courses - called 'apprenticeship units' - have been confirmed for introduction in April, although there is still little information on their structure, funding levels, or assessment. Six of the apprenticeship units are specific to the construction industry, with the seventh being 'AI Leadership'. The latter will be of relevance to retail and further details will be shared with members once we know more.
It is understood that these are the first of a number of apprenticeship units which will be introduced in the coming months. These units are not yet defined and will be subject to engagement with relevant industries and an assessment of evolving skills shortages.
