The UK will invest £3 billion in apprenticeships and skills training to reduce reliance on migrant labour and equip young people for vital industries.
In a sweeping effort to revitalise the domestic workforce and reduce the country’s dependence on foreign labour, the UK government has announced a record-breaking £3 billion investment in vocational training and apprenticeships. The ambitious plan is central to Prime Minister Keir Starmer’s strategy to rebuild Britain’s economy and deliver on his flagship “Plan for Change”.
At the heart of the reforms is a promise to create 120,000 new training opportunities for young people, particularly in sectors facing acute labour shortages such as construction, social care, and digital technology. The move comes amid mounting pressure to curb immigration following the electoral gains of the anti-immigration Reform UK party in recent local elections.
“Our open border experiment is over,” Starmer declared, signalling a decisive shift in policy. “We are training up our own, unlocking potential in every corner of Britain, and backing our young people to take the lead in building a better future.”
The new skills package, billed as the largest in a generation, includes funding for an additional 30,000 apprenticeship starts during the current Parliament. These reforms, ministers say, will provide pathways into skilled work for thousands, while directly supporting the delivery of affordable homes, NHS staffing, and growth in high-demand industries.
The reforms coincide with troubling labour market figures. More than one in five working-age adults are economically inactive, with official statistics showing a post-pandemic inactivity rate of 21.4%. Youth unemployment and disengagement remain major challenges, with nearly one in eight 16–24-year-olds not in education, employment or training.
In a statement, Education Secretary Bridget Phillipson said the initiative represents a “radical reset” of Britain’s skills framework. “A skilled workforce is the engine of our economy,” she said. “Today we’re backing the next generation—giving them the opportunity to earn, learn and thrive.”
In addition to the £3 billion apprenticeship budget, the government will roll out several complementary measures to boost adult skills and reorient training towards national needs:
A 32% increase in the Immigration Skills Charge, generating up to 45,000 extra training places in sectors historically reliant on overseas labour.
A shift away from master’s-level apprenticeships (Level 7) starting in January 2026, allowing more resources to be allocated to foundational skill levels with higher returns on investment.
The introduction of 13 new Level 2 construction courses under the Free Courses for Jobs scheme, targeting adults in non-devolved regions.
£14 million in adult skills funding to be devolved to local mayors, expected to support up to 5,000 additional learners in construction.
£136 million for Skills Bootcamps across priority sectors in 2025–26, training over 40,000 people.
An additional £100 million to expand Construction Skills Bootcamps over the next four years.
The launch of ten new Technical Excellence Colleges, specialising in construction and set to open in September 2025.
The measures aim to realign training with the economic realities of post-Brexit Britain and reflect the government’s drive to cut net migration while preparing domestic workers for high-demand roles. The reforms will be overseen by Skills England, a newly created national skills body, with board appointments confirmed this week. The organisation will work with employers and local leaders to shape training policy and delivery.
The plan also reflects broader political currents. While Starmer’s Labour government has been criticised by business groups for tightening skilled worker visa rules and making citizenship harder to obtain, it argues that prioritising domestic talent is key to achieving long-term sustainability and resilience.
Phillipson reinforced that message, saying: “When we invest in skills for young people, we invest in our collective future. But opportunity is a two-way street. Government is creating these pathways—now it’s up to young people to take them.”
The announcement follows years of declining apprenticeship starts, compounded by pandemic disruption and structural weaknesses in the post-16 education landscape. The government hopes this latest investment will mark a turning point, particularly as it battles to lift productivity and meet housing and healthcare targets.
