Labour has been warned its “skills revolution” to tackle youth unemployment risks failure, after its flagship apprenticeship scheme enrolled only 160 young people in its first eight months.
The shortfall, highlighted in a report by the Fabian Society, leaves the government well off track of achieving its ambition of 30,000 “foundation apprenticeship” starts by the end of this parliament.
As part of plans to tackle the nearly 1 million 16- to 24-year-olds not in employment, education or training (Neet), Labour announced in May last year what it called “radical skills reforms”, including the proposals for foundation apprenticeships.
These posts are paid jobs for young adults with attached training for a minimum of eight months. However, official figures show there have been only 160 such starts between August 2025 and April this year.
About 308,000 people have enrolled into an apprenticeship of any kind in England in the academic year so far, according to the official figures, an increase of 9% from the same period a year earlier. More than half of all apprenticeships are taken up by over-25s, while under-19s accounted for a fifth of all starts.
According to the analysis by the Fabians, overall apprenticeship starts among under-25s remain about 40% below their level of a decade ago – the largest decline among advanced economies.
The thinktank says this fragmented route into work must be fixed if the government is to hit its targets for boosting employment opportunities.
The warning comes as Andy Burnham pledges to overhaul technical education and apprenticeships as a central plank of his plan to support youth jobs and to help spread prosperity across the country.
Ministers are awaiting recommendations from a highly anticipated report by Alan Milburn, the former Labour cabinet minister, who is leading a review into Britain’s crisis in youth worklessness.
Experts have warned Britain risks a “lost generation” as young people bear the brunt of rising unemployment. About one in eight young people in the UK are now Neet, and the rate is growing faster than in other countries amid rising levels of mental ill health and the slowing jobs market.
Milburn is expected to publish his findings before next month’s budget, and his proposals are expected to include sweeping changes to education, welfare and employment policy.
Calling on ministers to take action, the Fabian Society said an overhaul of apprenticeships, technical education and jobs support was vital for tackling the rise in the number of young people out of work.
The Labour-affiliated thinktank said the academic route from GCSEs through to A-levels and university was clear and widely understood by individuals and employers, but young people hoping to pursue apprenticeships faced a far more complicated system to navigate.
Polling of more than 2,000 employers conducted for the report found only 24% had good knowledge of T-level technical qualifications, while as few as 16% had good knowledge of the government’s planned V-levels, which are designed to blend academic study with applied, practical learning. This compared with 83% for A-levels and 85% for GCSEs.
The report recommended the government launch a £311m-a-year regional apprenticeship fund by the end of the decade, created by devolving 5% of revenue from an expanded growth and skills levy.
It also urged a redesign of foundation apprenticeships, including allowing employers to use growth and skills levy funds to cover half the wage cost – saving £4,700 for every young person they took on. The report estimates this could support 26,000 new apprenticeship starts a year.
Joe Dromey, the general secretary of the Fabian Society, said: “The prime minister is right to make getting more young people into skilled work a priority. But setting the ambition is not enough if the route into an apprenticeship does not work.
“Our findings show just how confusing parts of the current system have become. The government’s commitment to reform technical routes from 14 are an important step, but ministers now need to make sure these routes actually lead somewhere.”
A Department for Work and Pensions spokesperson said: “We are determined to increase apprenticeship starts among young people and give them the skills they need to succeed.
“We are already pivoting the system towards the next generation, including creating 50,000 additional apprenticeships for young people, and introducing a new incentive of up to £2,000 for SMEs [small and medium-sized enterprises] which take on a 16- to 24-year-old apprentice.
“Our £2.5bn investment in youth employment will create nearly 1m jobs and training opportunities, including vital early work experience, and further reform will follow the Milburn review this autumn.”
