{"id":533494,"date":"2025-11-26T17:34:18","date_gmt":"2025-11-26T17:34:18","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=533494"},"modified":"2025-11-26T17:35:35","modified_gmt":"2025-11-26T17:35:35","slug":"budget-2025-fears-apprenticeship-changes-could-lower-standards","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/skills\/budget-2025-fears-apprenticeship-changes-could-lower-standards-26-11-2025\/","title":{"rendered":"Budget 2025: Fears apprenticeship changes could lower standards"},"content":{"rendered":"

Industry bodies have voiced concerns that proposed changes to the funding and structure of apprenticeships could see standards lowered.<\/p>\n

On Wednesday, chancellor Rachel Reeves announced plans to pay for all the training and assessment costs for apprentices under 25 employed by SMEs.<\/p>\n

Presently, SME employers who do not pay into the apprenticeship levy have to contribute 5 per cent towards the costs for apprentices over the age of 22.<\/p>\n

Her Budget statement also announced the introduction of short courses for apprenticeships, which some in the industry believe will make employers less likely to take them on.<\/p>\n

Nicola Hodkinson, owner and director at contractor Seddon, said the move will do “little to move the dial” for the industry and demonstrates a “fundamental misunderstanding” of the challenges facing construction.<\/p>\n

“The cost of apprenticeship training has never been the core barrier for employers – so removing it won\u2019t address the real issues holding back workforce growth,” she said.<\/p>\n

“The apprenticeship system continues to fall short, not because training is too expensive, but because employers lack the incentives and support to take apprentices on in the first place.<\/p>\n

\u201cEmployers are not held back by training costs, but by the salaries they are expected to offer and the absence of meaningful incentives that make hiring apprentices viable and sustainable.<\/p>\n

\u201cIf the government genuinely wants to increase apprenticeship uptake, it must introduce measures that make a tangible difference: tax breaks for employers, reduced capital gains for businesses with a high proportion of apprentices, or substantive financial rewards for those investing in future talent.”<\/p>\n

Reeves has said the additional funding will come out of a \u00a3725m Growth and Skills Levy pot aimed to support apprenticeships for young people.<\/p>\n

The chancellor also announced that \u00a3820m would go towards a Youth Guarantee scheme: offering six-month paid work placements for 18-to-21-year-olds who have been on benefits and unemployed for 18 months.<\/p>\n

She also announced measures to:<\/p>\n