The number of youth apprenticeship starts has fallen by 40% over the past decade. Because we want to give more young people the chance of apprenticeships, we are fully funding youth apprenticeships for small businesses, introducing a £2,000 hiring incentive for non-levy-paying employers, and expanding foundation apprenticeships in hospitality and retail. All that is aimed at more opportunity and more work for young people.
I very much welcome the work being done to prioritise and expand apprenticeships, but all too often their image is dated and the modern situation is not fully understood. While my local university tells me that good work on promoting apprenticeships is being done in private and grammar schools, that is not always reflected across the wider state sector. Will the Government consider how we might tackle the issue, working with apprenticeship bodies, industry organisations and the unions, to ensure that modern apprenticeships are fully known about and the opportunities they provide are fully understood?
My hon. Friend is right to say that promoting apprenticeships must start in schools. Our brilliant apprenticeship ambassador network brings together about 3,000 employers and apprentices, who go into schools and colleges and share stories about how apprenticeships can transform young lives. Those ambassadors have now reached 97% of the state-funded secondary schools and colleges in England—nearly 3,500 in the past three years—but, for the reasons that my hon. Friend has given, we have got to do more work to make information about apprenticeships as clear and easy to use as possible.
I raised with the Prime Minister at PMQs a couple of weeks ago the case of Twentyfour Hair, a salon in Princes Risborough in my constituency, which for the first time in 21 years cannot afford to take on a new apprentice. That message is echoed by businesses across my constituency. In order to improve uptake in new apprenticeship starts, which I entirely support, what steps is the Secretary of State taking with the Chancellor to get rid of this punitive level of business taxation, which is preventing businesses from taking them on?
I referred in my previous answer to the step I am taking, which is to put in place a £2,000 hiring incentive for small businesses taking up a new apprentice. If it is someone who has been unemployed and on universal credit for six months, there is the potential for an additional £3,000 hiring incentive on top of the £2,000. We want to incentivise small businesses to take on apprentices, for reasons that I think are shared right across the House and because of the great opportunities that they entail.
This month I launched a space apprenticeship pilot in Portsmouth North, bringing together Airbus and the Solent Growth Partnership to ensure that candidates who narrowly miss out on an Airbus apprenticeship are matched directly with defence and space SMEs in the area. Following the failure of the last Government, does the Secretary of State agree that this Labour Government’s reforms are finally delivering high-value opportunities in aerospace and cyber, and will he work with me to look at how we can extend this initiative across other sectors, such as maritime and construction?
May I congratulate my hon. Friend on what sounds like a fantastic initiative? She puts her finger on something very important: sometimes people who narrowly lose out on a particular apprenticeship could benefit from one elsewhere. I did refer to the work that we are doing to try to improve the information, and the initiative she has taken is a great example of what can be done. Just because people do not get their first choice should not mean that they lose out on the opportunity of an apprenticeship entirely.
Apprenticeships offer young people a great pathway into rewarding careers, so I very much welcome the Government’s ambition to create more of them, but a report published last week by the Social Security Advisory Committee highlighted the so-called apprenticeship penalty, whereby low-income families can lose up to £330 a week in child benefit and universal credit the moment a 16-year-old takes up an apprenticeship. What is the point of creating more apprenticeships if a cliff edge like this discourages young people from taking them up? Will the Minister commit to urgently fixing this penalty, so that no family are left worse off simply because their child chooses an apprenticeship over full-time education?
I am always grateful for the work of the Social Security Advisory Committee, and I am grateful to the hon. Lady for her question, but one thing that she missed out is that apprenticeships are paid, so a young person taking up an apprenticeship opportunity will be earning money that contributes to the family’s income. We have to take that into account, as well as all the other sources of the family’s income.
I really welcome my right hon. Friend’s work in this area, given that so many young people are unemployed, but what is he doing to evaluate how many apprentices get proper, long-term, full-time jobs as a result? Clearly, that is the end goal that we all want to see.
My hon. Friend will know that when people complete an apprenticeship, their chances of employment are very high. I am pleased to report that apprenticeship achievement rates are up in the latest figures, as are the apprenticeship start numbers.
Leicester college, a further education college, is facing a funding crisis that is putting apprenticeships at risk. The Government have a noble commitment to building 1.5 million homes and training 60,000 construction workers, but young people wanting construction apprenticeships are being turned away. No bricklayers, no electricians and no plumbers means no homes. In Leicester, the rate of young people who are not in education, employment or training is nearly 6%—five times higher than the national average. We have the employers and we have the demand, but without proper funding, we cannot deliver the skilled workforce that this country desperately needs. What real-terms funding increase will the Secretary of State commit to in order to ensure that young people have the opportunity to access skills via the apprenticeship scheme?
We always listen to representations that ask for more funding for many good causes. On the issue of construction, a specific construction sector skills package was announced last year. It is aimed precisely at training the bricklayers, electricians and plumbers we need to meet our construction targets, not only in housing but in the many investment projects around the country that are being supported by this Government.
I call the shadow Minister.
With the number of young people not in education, employment or training hovering at the 1 million mark, apprenticeships now more than ever are key to supporting opportunity and aspiration for so many of our young people. Conservative Members fundamentally believe that the best path out of poverty is being in work and contributing to society, with all the economic freedoms that a job brings. Given that the number of apprenticeships in the Secretary of State’s own Department dropped from 5,000 in 2024 to 3,500 in 2025, is it not the case that the Government’s message to business is, “Do as we say, but not as we do”?
I agree with the shadow Minister that work is the answer. As I said a moment ago, apprenticeship starts are up on the latest figures and apprenticeship achievement rates are up. The reforms that we are putting in place will mean more youth apprenticeship starts, and that is where the money should be directed, because that is where the need is greatest.
I call the Liberal Democrat spokesperson.
A recent Guardian report highlighted how young people from more deprived communities are facing discrimination through the apprenticeship system. As my hon. Friend the Member for South Devon (Caroline Voaden) alluded to, there is a penalty if someone’s family also receives child benefit. How can the Minister intervene to support the most vulnerable families?
It is important to remember that apprenticeships are paid and that the people undergoing them get a wage. When we are considering the overall economic impact on a family’s income, we have to take that into account. Frankly, if the hon. Member pushes me and asks me whether it is better for that income to come from benefits or the constructive work of an apprenticeship, I know which one I would pick.