Government chooses hospitality for youth training and apprenticeship plans

The Department for Work and Pensions has released details of two funding packages to get young people into work in hospitality.

The first is an £820m fund to create an estimated 350,000 new workplace opportunities to support young people on Universal Credit in developing on-the-job skills, employer networks and CV and interview coaching.

The fund, called the Plan for Change, will encompass a government-backed guaranteed job and will be rolled out from spring 2026 in areas with some of the highest need, including Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex, Central and East Scotland and Southwest and Southeast Wales.

The Department for Work and Pensions estimated that 55,000 young people stand to gain from the jobs created.

Work and pensions secretary Pat McFadden said: “This funding is a downpayment on young people’s futures and the future of the country, creating real pathways into good jobs and providing work experience, skills training and guaranteed employment.”

However, Michael Kill, chief executive of the Night Time Industries Association, said: “The government’s announcement of £800m to tackle youth unemployment risks missing the point entirely if the businesses that create jobs are being priced out of existence. You cannot subsidise people into jobs that no longer exist.

“As one of the biggest employers of young people, we are keen to support efforts to get young people into work. But right now, it feels like giving with one hand and taking away with the other.”

The second funding package is for £725m earmarked for apprenticeship system reform.

This includes £140m for a pilot where mayors will be able to connect young people – especially those not in education, employment or training (NEET) – with thousands of apprenticeship opportunities with local employers.

As part of the package, the government will also cover the full cost of apprenticeships for eligible young people aged under 25 at small and medium-sized enterprises (SMEs). This removes the previous 5% co-investment rate for SMEs.

New short courses in cutting-edge areas including AI, engineering and digital skills will begin rolling out from April 2026.

The reforms are designed to tackle the sharp decline in apprenticeship starts among young people over the past decade, which have fallen by almost 40% since 2015-2016, and to shift the focus towards supporting young people into high-quality training and employment.

The funding comes alongside government plans to open up new waves of foundation apprenticeships in sectors such as hospitality and retail.

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