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Higher training costs for older workers risks plan to tackle youth jobs crisis, employers say

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correspondent, R. P. S. e. (2026, October 26). Higher training costs for older workers risks plan to tackle youth jobs crisis, employers say. The Guardian. https://www.theguardian.com/education/2026/oct/26/training-costs-apprenticeships-older-workers-youth-jobs-crisis-neet

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The Guardian · collected 2026-10-26 · by Richard Partington Senior economics correspondent

Quick Summary

Britain’s largest employers warn that increasing the cost of training workers over 25 by 25% could undermine efforts to address youth unemployment. The proposal, part of an overhaul of Labour's apprenticeship funding scheme, aims to encourage firms to hire and train younger employees instead. However, business leaders argue this approach could shift opportunities rather than create new ones and call for a focus on expanding overall apprenticeships rather than reallocating funds from older to younger workers.
Written by AI on 2026-10-26, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

As of October 26, 2026, Britain’s employers have warned that plans to increase training costs for workers over 25 years old could undermine efforts to address youth unemployment. The government intends to modify Labour's apprenticeship funding scheme by raising the cost of training older employees by 25%, using funds from the £4bn-a-year growth and skills levy. This proposal, expected in Wednesday’s budget, aims to encourage companies to hire younger workers instead. Business leaders argue that such a policy may merely shift employment opportunities rather than create new ones. For instance, Robert Halfon, former Conservative minister and current executive director of Make UK, stated the plan might result in reallocating opportunities without fostering growth for unemployed youth. The proposal is part of the government's response to Alan Milburn’s review on high youth unemployment, which affects over 1 million young people not in education or employment across England.

Written for “Training Costs For Older Workers” on 2026-11-04, grounded in this article and the 0 other(s) covering the same event.

Story

📰 Training Costs For Older Workers
Economy/Business · 1 article(s) covering the same event.

Compared with similar articles

This article reads unscored and hedges 0% of its claims. Each row says how that neighbour differs.
Daily Mail
Hedges 0 of 14 claims Outlet record 69/100
“The articles discuss different policy decisions related to employment training and minimum wage, not the same specific incident or time.”
BBC News
⚖️ Leans right Hedges 1 of 3 claims Outlet record 68/100
“The articles discuss related topics but describe different events: one focuses on employers' concerns about training costs and their impact on youth employment, while the other is an interview with the Chancellor regarding welfare spending and pledges.”
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
29
sentences that state something as happening or true
Uncertain
0%
0 of 29 hedged ("reportedly", "may", "according to")
Leaning
withheld
no quote in the article backed the model's score
Publisher signals
66/100
The Guardian's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
1
Economy/Business
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-10-26 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

The Guardian · 2929 article(s) · 6 correction(s) detected
Running correction rate · 6 correction(s)

Who wrote this

Richard Partington Senior economics correspondent
15 article(s) here · 1 carrying a prediction
🔮 Angela Rayner has said voters will begin to see a difference in their high street before the next general election as Labour prioritises investment in struggling local communities.
🔮 Helen Miller, the director of the IFS, said avoiding a return to austerity for unprotected government departments could require a £17bn top-up to the spending plans for 2030-31.
🔮 Britain’s economy has taken a multibillion-pound hit as the war in the Middle East drags down growth and triggers a fresh cost of living crisis, according to the government’s independent forecaster.
🔮 Drawn up before Wednesday’s budget, the proposal, which was first reported last week, is expected to form part of the government response to Alan Milburn’s review into why so many young people are unemployed.
🔮 As he prepares for his debut budget, the chancellor said that Andy Burnham’s government would commit hundreds of millions of pounds to develop a “distinctively British” approach to AI that would capitalise on the benefits of the frontier technology.
🔮 With less than a week before his tax and spending speech to the Commons, the chancellor is under pressure to take action to support households amid warnings that consumer energy bills could reach £2,000 a year from January for the typical household.
🔮 With his final report delayed until after the budget, the former Labour cabinet minister this week signalled that boosting access to apprenticeships would be critical for fixing the first rungs of the career ladder for young people.
🔮 Shevaun Haviland, the director general of the British Chambers of Commerce (BCC), said she welcomed the prime minister reopening the Brexit battle lines despite the uncertainty it could create, arguing that the UK’s current trading relationship with the EU was bad for business.
🔮 City economists had forecast the economy would shrink by 0.1%.
🔮 The chancellor is however under growing pressure to take action to support households and businesses before the winter amid predictions that consumer energy bills could reach £2,000 a year from January for the typical household.
Also by Richard Partington Senior economics correspondent
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 15 articles by Richard Partington Senior economics correspondent →

Topics

Britain Conservative England Guardian Labour

Subjects

England GPE · 2× Healey PERSON · 2× Labour ORG · 2× Alan Milburn’s PERSON · 1× Britain GPE · 1× Conservative NORP · 1× Guardian ORG · 1× John Healey PERSON · 1× Make UK ORG · 1× Robert Halfon PERSON · 1×

Narrative

Under the latest proposal, which is yet to be finalised, employers would be able to fund the full cost of an apprentice under the age of 25 using the money they contribute to the growth and skills levy – the £4bn-a-year tax used to fund the national apprenticeship system. However, for an older worker, they would face a “co-investment rule” whereby levy funds would cover 75% of the costs.
framing: assertive · carried by 1 article(s) · first seen 2026-10-26
🔮 Drawn up before Wednesday’s budget, the proposal, which was first reported last week, is expected to form part of the government response to Alan Milburn’s review into why so many young people are unemployed.

Claims (29 extracted, 0 hedged)

Britain’s largest employers have told the government that forcing businesses to pay more to train older workers risks damaging its goal to tackle the youth jobs crisis. asserted
forcing → tell → crisis
The Guardian understands ministers plan to overhaul Labour’s apprenticeship funding scheme to increase the cost of training a worker over the age of 25 in England by 25%, to encourage firms to train young people instead. asserted
ministers → understand → people
Drawn up before Wednesday’s budget, the proposal, which was first reported last week, is expected to form part of the government response to Alan Milburn’s review into why so many young people are unemployed. asserted
people → draw → review
The chancellor, John Healey, is widely tipped to announce measures to bolster opportunities for young people to help the 1 million 16- to 24-year-olds not in education, employment or training (Neet) across the country. asserted
chancellor → tip → country
However, business leaders urged the government to reconsider the plan to make training older workers more expensive. asserted
training → urge → workers
“It will just mean opportunities are shifted around instead of creating new ones,” said Robert Halfon, a former Conservative skills minister who is now the executive director of policy at the manufacturing lobby group Make UK. asserted
who → mean → group
“We agree that getting young people back into employment and training is a moral and economic imperative. asserted
getting → agree → employment
But making it more expensive for employers to train older workers isn’t the answer,” he added. asserted
he → make → workers
Calling on Healey to “break the cycle” of cutting and reallocating the apprenticeship budget in England, Halfon said the system was already struggling to deliver what businesses and young people need. asserted
businesses → call → what
“If the government is serious about getting young people into good jobs and giving industry the skills it needs, it should use that opportunity to grow the number of apprenticeships available rather than restrict training elsewhere.” asserted
it → get → training
Andy Burnham has placed youth jobs at the heart of his agenda, including sweeping changes to retool technical education and plans to reverse a 40% drop in youth apprenticeship starts over the past decade. asserted
Burnham → place → decade
With over-25s accounting for more than half of new apprenticeship enrolments, ministers have been clear they want to rebalance the system towards supporting more younger people. asserted
they → account → people
Under the latest proposal, which is yet to be finalised, employers would be able to fund the full cost of an apprentice under the age of 25 using the money they contribute to the growth and skills levy – the £4bn-a-year tax used to fund the national apprenticeship system. However, for an older worker, they would face a “co-investment rule” whereby levy funds would cover 75% of the costs. asserted
funds → finalise → costs
The rest would need to be covered separately. asserted
rest → need → ?
Employers have for years been told they were free to spend their levy funds on training as they saw fit. asserted
they → tell → training
John Foster, the chief policy and campaigns officer at the CBI lobby group, said: “We can’t make skills a zero-sum game. “ asserted
skills → say → group
While it is right to focus on supporting young people who are Neet into work, adult training also has a vital role to play in opening up entry-level opportunities and helping people adapt and update their skills mid-career, particularly as AI reshapes the workplace.” asserted
AI → focus → workplace
Ben Rowland, the chief executive of the Association of Employment and Learning Providers, said: “The key to any further changes to the apprenticeship system is to bring employers on the journey. asserted
key → say → journey
Anything that is too abrupt or too quick significantly endangers that.” asserted
that → endanger → that
Business leaders have been pressing Healey to use Wednesday’s budget to provide support with soaring costs amid the war in the Middle East, and have urged the chancellor not to add to the pressure on firms after Labour’s increase in employer national insurance contributions. asserted
leaders → press → contributions
Kate Shoesmith, the director of policy and insights at the British Chambers of Commerce, said: “At a time when businesses are under pressure to improve productivity and drive growth, employers need greater flexibility and support to invest in skills at every stage of a person’s career. asserted
employers → say → career
“The best way to encourage more youth apprenticeships is to make it easier and more affordable for firms to take on young people by reducing the wider costs of doing business, rather than creating new barriers to training.” asserted
firms → encourage → training
Labour has been told its youth skills strategy risks failure without reform, after just 160 young people were enrolled into its foundation apprenticeship scheme in the first eight months. asserted
people → tell → months
Ministers have an ambition for 30,000 starts over the current parliament. asserted
Ministers → have → parliament
Joe Dromey, the general secretary of the Fabian Society, said that while flexibility was important for business, the current system was skewed too heavily towards funding older, often already highly qualified workers. asserted
system → say → workers
But tackling youth unemployment means making difficult choices about where public funding is spent.” asserted
funding → tackle → choices
A government spokesperson said: “It’s right that we focus on reversing the 40% decline in the number of young people starting an apprenticeship and give them the skills they need to succeed. asserted
they → say → skills
“That’s why we have reformed the system backed by £3.3bn to deliver 50,000 additional apprenticeships for young people and support employers with a new hiring payment of £2,000 for SMEs who take on a 16- to 24-year-old apprentice. asserted
who → ’ → apprentice
We will not pre-empt its findings.” asserted
We → pre → findings
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