We can create real pathways into work for young people, and solve the skills gap

This focus on young people is timely. In our own Places for People (PfP) Wellbeing Survey, more than a quarter (28%) of our customers under 25 who responded told us they were actively looking for work. That is a stark reminder that while apprenticeships and training opportunities matter to the industry, they have a profound personal impact, too.

For many young people in our communities, work is not just about income, it is about stability, identity and long‑term well-being.

Genuine progress relies on government and industry working side by side, so I hope that this announcement will create real pathways for young people into work. That’s something we’ll always champion at PfP Thrive, where at our Derby site alone, we are supporting 100 new apprentices every year.

“Demand for apprenticeships is not the issue, as we receive hundreds of applications. The real challenge lies in organisations having the confidence and financial capacity to employ apprentices in the first place”

I know that some have found the shift in focus from long‑term talent investment to youth unemployment jarring. Early feedback suggests the measures announced may risk addressing only the short‑term challenge. However, with the right support, this step change has the potential to deliver long‑term, positive impact for our sector.

It also comes at a time of change across apprenticeships, with the government introducing the Growth and Skills Levy, which was again focused on opportunities for young people. Right now we have some of the details, with immediate changes including the introduction of Apprenticeship Units – short courses that will make for quicker upskilling – and later in the year the new offer of fully funded apprenticeships for non-levy payers.

I look forward to seeing how they play out and hope the changes will bring more announcements in due course. Perhaps the defunded leadership and management courses can re‑emerge as short, targeted programmes similar to the solar-panel installation model. Strong leaders shape culture and create the environments in which early‑career talent can truly thrive, allowing businesses to continue investing in their people while drawing on available funding.

We’re still awaiting details on how the short courses will be funded and how many hours will be required to meet the threshold, but I can’t see this being an all‑or‑nothing situation.

We know the skills gap carries real‑life consequences for communities. Demand for apprenticeships is not the issue, as we receive hundreds of applications. The real challenge lies in organisations having the confidence and financial capacity to employ apprentices in the first place. With nearly 50% of levy funding going unspent each year, the commitment to provide small and medium-sized enterprises with £2,000 for each new apprentice aged 16-24 is a positive step, but it will only stretch so far.

We must also shift perceptions of apprenticeships. At PfP Thrive, we have long championed the view that apprenticeships are not just entry points, they are investments in people. These updates won’t change that, but they will create more opportunities for more people.

Yes, nearly half of apprentices drop out before qualifying, and over a third leave their employer after completing, so we know we must maintain routes for progression. But for our young customers – many of whom, as our survey shows, are eager for meaningful work – these roles represent a vital gateway into long‑term careers. If we want to make a meaningful dent in the skills crisis, we need bold moves.

I will be pragmatic: these changes will challenge businesses in the short term as they adjust their recruitment processes and rethink how they invest levy funding. That might not be easy. But the levy funding is still there, just in a different form. Organisations like PfP Thrive can help employers navigate these changes and continue investing in the talent our sector needs.

“Redirecting unspent levy funds to help businesses meet the financial demands of hiring apprentices is a good first step, though some might say it has not gone far enough”

There are promising signs that the government is listening. Redirecting unspent levy funds to help businesses meet the financial demands of hiring apprentices is a good first step, though some might say it has not gone far enough.

Creating new short‑course pathways in areas that will be integral to the future success of our sector will have a positive impact. And crucially, creating more opportunities for people not in education, employment or training will support more people into work, boosting their health and well-being and opening the door to long‑term career prospects.

We know this moment represents a seismic shift in how organisations deliver training and invest in their people. For some, it will create opportunities; for others, it may threaten their ability to continue operating. These changes will create a ripple effect across the sector. But we need to seize the moment.

Yes, businesses will need time to understand the implications and reshape their strategies, but if we are serious about building and retrofitting the homes this country desperately needs, we must ensure the skills system continues to attract people into housing and construction, that the levy is used where it can be, and that we give students the skills they need to flourish.

Tom Arey, managing director, PfP Thrive