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July 10, 2025
A government shift in apprenticeship funding is set to create 120,000 new entry-level roles, redirecting support from higher-level programmes to foundational training. This could revitalise pathways into work for young people and strengthen employer talent pipelines—provided businesses plan meaningful placements, coaching, and progression routes.
Young people have had a rough time lately. They left school during a pandemic and missed out on the celebrations that should have marked this special occasion.
They isolated through their first years of university, or studied remotely, missing out on the mixers and socials that punctuate the university experience.
In their final years, they were hit with lecturer strikes that threatened to derail their exams and the opportunity to secure their diplomas.
And then they entered the workforce at a time when AI was sweeping through businesses, delivering greater efficiency at the expense of entry level roles. It would be fair to say that entry level workers have had it tough, but a new wave of apprenticeship roles could be about to change that.
In May 2025, the Labour government announced sweeping changes to the way apprenticeships are funded, creating 120,000 new roles for entry-level workers. This is moving funding away from masters level training and focus on training at lower levels, including roles in construction, engineering and healthcare.
It is hoped that these changes will help to boost growth, increase the number of young people in work, and help to ease reliance on migrant workers. It could also help to bring relief to recent school leavers and graduates who are facing a difficult job market, with few entry level roles available.
| Topic | Key Point |
|---|---|
| Policy shift | Funding moves from higher-level to lower-level apprenticeships to expand entry routes into work. |
| Scale of impact | Creation of 120,000 new roles aims to boost youth employment and early-career mobility. |
| Sectors to benefit | Strong emphasis on construction, engineering, and healthcare pathways. |
| Entry-level context | AI has reduced admin-heavy roles; apprenticeships can rebuild a sustainable junior pipeline. |
| Concerns & trade-offs | Potential reduction in access to some higher-level routes, including certain professional pathways. |
| Employer incentives | Planned payments to help cover coaching, mentoring, and support for early-career hires. |
| What employers should do | Design real work rotations, assign trained mentors, and map progression into permanent roles. |
With AI making light work of many administrative level tasks, including taking minutes in meetings, data entry, simple customer service interactions and administrative tasks, companies are using this opportunity to downsize their workforce.
This could be a short-sighted approach, as it means they won’t have an entry-level pipeline of talent joining their company. That said, if there is no need for entry level employees, there is little sense in artificially inflating the workforce just for the sake of it.
Criticism of the scheme lies in taking funding away from higher level apprenticeships, which some fear could damage upward mobility, making it more difficult for those from the most deprived backgrounds to enter certain professions.
The Law Society pointed to the Level 7 solicitor apprenticeships as the only way for those without a university education to enter the profession. Scrapping funding for this could make it impossible for some to enter the profession due to requirements by the Solicitors Regulation Authority.
The NHS could also suffer as a result of a loss of funding, although the government has listed this as one of the sectors that could benefit from a shift in focus.
It also remains to be seen who will provide these apprenticeships, as funding does not always equal take up. The plans will include an employer incentive payment that will help to contribute to the additional costs of supporting those at the start of their career, including coaching or mentoring.
Use apprenticeships to rebuild junior capability: scope meaningful work, provide structured learning, and convert successful apprentices into permanent hires.
Expand access at entry level while mapping routes to higher qualifications, ensuring apprentices grow into skilled, future-ready professionals.
Thinking about meeting your skills requirement with an apprenticeship? The process is actually quite straightforward, and you’ll have more support than ever before.
You first need to define your business objectives and the kind of skills shortages you are facing. This can then help to determine a training partner to offer the classroom based learning alongside your on-the-job learning.
Everything is managed through something known as an Apprenticeship Service Account. This will allow you to access the funding for the role and to advertise the role on the Find an apprenticeship service.
You can work with the training provider to find a suitable candidate, or multiple candidates if you have the capacity. You’ll typically contribute around 5% to their training costs. Once you have narrowed down your selection, you can create an apprenticeship agreement, which will outline what you are offering and what can be expected in return.
Be prepared to fill in paperwork throughout the process, not just during the applications. This helps to ensure that everyone is getting a fair deal.
A strong apprenticeship programme can become a key part of your employer brand values, allowing you to stand out in a crowded sector. It can also help you to develop a strong pipeline of junior talent, giving you first choice over the newly qualified graduates of your scheme.
Describing it as new funding might be a bit unfair to the reality of the situation. We’re seeing a shift in funding away from higher level training and a refocus on entry level roles in specific sectors. This could mean fewer people becoming solicitors through this scheme, but an uptick in young people training in the care sector or construction.
While this might benefit those who have left school and not moved on to further education or gained employment, it could still miss the mark for those who have left university laden with debt and without a clear path for their future.
Tap into the apprenticeship boom and secure fresh talent for your business. Post your apprenticeship vacancy with CMD Recruitment and connect with motivated candidates ready to learn and grow.
