Money will come from Growth and Skills Levy
Chancellor Rachel Reeves has said she will be making training for under 25 apprenticeships free for small and medium sized enterprises.
In this afternoon’s Budget, Reeves said the money will come from £725m allocated under its Growth and Skills Levy.
A Treasury document added: “Alongside this funding, the government will introduce new reforms to simplify the apprenticeship system and make it more efficient as short courses are introduced from April 2026.”
Reeves said government will guarantee a six-month paid work placement for every eligible 18 to 21 year old who has been on Universal Credit and looking for work for 18 months.
Meanwhile, the National Minimum Wage for 16 to 17 year olds and apprentices will rise by 6% to £8 from next April.
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Budget measures at a glance
- Freeze on national insurance thresholds extended for three years from 2028
- Legal minimum wage to rise in April by 4.1% for over 21s and by 8.5% for 18 to 20-year-olds
- Plans to converge two rates of landfill tax halted
- £13bn funding for seven regional mayoralties
- “Mansion tax” of between £2,500 and £7,500 for properties valued over £2m.
- A further £900m for Lower Thames Crossing
- Funding for regional infrastructure projects including £20m Peterborough sports quarter
- OBR upgrades growth forecast from 1% to 1.5% but downgrades productivity
- Fiscal headroom doubled to £22bn
- Recommendations to cut red tape in nuclear sector to be delivered within three months
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