We’re cutting red tape on apprenticeships – now businesses must step up, writes Baroness Jacqui Smith

I heard from Shaun, a parent who had worked with apprentices for two decades and was concerned by the bureaucracy of apprenticeship assessments. I heard from Matt, who did an apprenticeship while in the army and has since tutored talented young car mechanics, despite struggling with English and maths and never completing his apprenticeship.

And I heard from Shazia, who overcame a diagnosis with a special learning need in her adult life to retrain and start a rewarding new career as a portfolio manager, and wanted more people to be able to do the same.

It was clear the apprenticeship system was not working for everyone. One in seven young people are currently classed as not in education, employment or training. That’s almost 1 million young people lacking the opportunity to get on in life and thrive in their local communities. An entire generation has been badly let down – it should shame us all.

But this government was elected on the mantle of change – particularly for those young people, crying out for opportunities to get on in life, to build careers and livelihoods in skilled occupations.

That’s why we’ve already started to cut red tape and make life easier for young people and employers.

We’ve announced new foundation apprenticeships that will open doors to industries like construction to people who wouldn’t otherwise have considered it.

We’ve cut the minimum length of an apprenticeship so people with pre-existing training can get their foot in the door of a new career more quickly. We’ve put the power into employers’ hands to decide what English and maths qualifications their apprentices need, so that people like Louise can complete their apprenticeship without having to redo these qualifications to fit an arbitrary rule.

We’re already starting to see our plans bearing fruit: apprenticeship starts, participation and achievements are all up on last year.

Our reforms will help secure the future of our workforce, ensuring a strong pipeline of talent to work in emerging industries like clean power, AI, manufacturing and defence. It will also help to grow the economy, delivering more job opportunities and putting money back in LBC listeners’ pockets.

I've met dozens of employers who understand the importance of this. They understand that developing their staff is both the right thing to do for young people and key to developing their business.

They're working with local colleges, taking on young people, training them up and seeing the real benefits that follow. They don't expect new employees to be the finished article from day one – nor do they assume that someone, somewhere else, will magically provide the skilled workforce they need.

These employers are vital to our mission to grow the economy, and I'm proud to be working alongside them. But recent news has given me cause for concern, and shown we need many more to follow their lead.

Employer investment in training has dropped by nearly a fifth in real terms since 2011, according to the 2024 Employer Skills Survey. That's the wrong direction of travel when we desperately need to be investing for the future.

I absolutely understand the pressures that businesses face – they are playing their part in helping to rebuild our country after the last fourteen years. But here's what I've learned from talking to employers who are getting this right: investing in apprentices and training isn't a burden on the business.

It's an investment that delivers real returns through better productivity, lower staff turnover, and stronger growth. And it pays to employ younger people – employers don’t pay National Insurance contributions for apprentices under 25.

We're backing them with major investment – £45 million for Youth Guarantee trailblazers and £625 million to support the construction sector to recruit the skilled workforce they need to get Britain building. An extra 120,000 opportunities are now available thanks to our reforms and the apprenticeship funding pot is now worth a record-breaking £3 billion.

And today we’re announcing the locations of ten Construction Technical Excellence Colleges (CTECs). Backed by a £100 million investment, CTECs will help every region in England deliver well-paid jobs, support the construction sector and deliver our commitment to build 1.5 million homes as part of the Plan for Change.

This isn't tinkering around the edges. This is fundamental reform designed to make the system work better for apprentices, for employers, and for our economy.

But government can’t do this alone. For too long, some sectors have been comfortable relying on bringing in skilled workers from abroad rather than investing in the talent we have here at home. That's not sustainable, and frankly, it's not fair to our young people, who are desperate for a chance to build their careers.

So what we need now is genuine partnership. Government has created the framework, we've provided the funding, and we're cutting the red tape. The tools are there, the scaffolding is in place. Now we need more employers to step up alongside those who are already leading the way.

Employers like Mace understand the importance of investing in upskilling their workforce. Mace has bucked the wider trend of falling investment in training, ensuring young people are given the opportunity to succeed, and I commend them. Their Chairman, Mark Reynolds, co-chairs our Construction Skills Mission Board, where he shares his expertise with government and other construction employers.

We need more employers to put their hands in their pockets and match the government’s ambition and commitment. Not just the ones like Mace who are already doing brilliant work – but those who are still waiting for someone else to solve the skills challenge for them.

Government is absolutely committed to playing its part – now it's time for employers to play theirs.

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Baroness Jacqui Smith is the Minister of State for Skills, Apprenticeships and Higher Education.

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