Labour has faced criticism over the effectiveness of its "skills revolution" aimed at reducing youth unemployment, following reports that its flagship apprenticeship program has enrolled only 160 young people in its first eight months. A report by the Fabian Society, a progressive thinktank, has warned that the government is far from meeting its target of 30,000 "foundation apprenticeship" starts by the end of this parliamentary session. These foundation apprenticeships, introduced as part of Labour's "radical skills reforms" in May 2023, are designed to provide young adults with paid jobs combined with at least eight months of training. However, official data shows only 160 such apprenticeships have been started between August 2025 and April 2026.
Despite the low numbers for foundation apprenticeships, overall apprenticeship enrollment in England has increased by 9% compared to the same period last year, with 308,000 people participating in various types of apprenticeships. However, the majority of these are taken by people over the age of 25, with under-19s accounting for only a fifth of all starts. The Fabian Society’s analysis also highlights a long-term decline in apprenticeship participation among those under 25, which has dropped by 40% compared to a decade ago—among the worst declines in advanced economies. The thinktank argues that without significant reforms, the government will struggle to meet its goals of improving youth employment and addressing the growing crisis of young people not in education, employment, or training (NEETs).
Experts are increasingly concerned about the risks of a "lost generation" as youth unemployment rises and mental health challenges grow. One in eight young people in the UK are currently NEET, and this rate is increasing faster than in other countries. The situation has prompted calls for urgent action, with Andy Burnham, the Greater Manchester Mayor and Labour’s potential candidate for Prime Minister, pledging to overhaul technical education and apprenticeships as a key part of his strategy for youth employment and broader economic growth. These plans come as the government awaits the findings of a major review led by Alan Milburn, a former Labour cabinet minister, who is examining the UK's crisis in youth worklessness. His report is expected to be published before next month’s budget and may recommend sweeping changes to education, welfare, and employment policies.
To address the challenges in the apprenticeship system, the Fabian Society has proposed a £311 million annual regional apprenticeship fund, created by redirecting 5% of revenue from an expanded "growth and skills levy." The report also suggests redesigning foundation apprenticeships to make them more attractive to employers, including allowing them to use levy funds to cover half the wage cost of hiring young apprentices—potentially supporting 26,000 new starts per year. The thinktank has also highlighted confusion among employers about technical qualifications like T-levels and the proposed V-levels, which blend academic and practical learning. In contrast, A-levels and GCSEs are widely understood by employers, indicating a need for better communication and clarity around apprenticeship pathways.
Labour's Youth Apprenticeship Scheme Falls Short of Targets Amid Warnings of a 'Lost Generation'
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