Do You Know? The government says its expanded Local Apprenticeships Service will be available to any English mayor who wants to use it, with a nationwide rollout planned from March 2027.
Chancellor John Healey has argued that the best support the government can offer young people is a first job with training and a wage, rather than a benefits payment.
Speaking at Labour’s annual conference in Liverpool on Monday, Healey warned against allowing the benefits bill to grow without creating more opportunities for young people. He described reducing welfare spending as both an economic necessity and a moral duty.
Apprenticeship service to expand
Healey announced that the Local Apprenticeships Service, initially planned as a pilot in a limited number of areas, would be opened to any English mayor who wants it.
The Treasury says the scheme will roll out across England from March 2027. Local teams are expected to match young people with employers, including small businesses that have not previously taken on a trainee.
The department said an additional £100m would be provided for the scheme, fully funded by savings from the Department for Work and Pensions.
Healey said mayors would implement the programme because they know which firms are hiring, which colleges are delivering training and which areas have been left behind.
Benefits and public finances
The chancellor said benefits should be a bridge into work rather than a trap. He pointed to about one million young people who are not in education, employment or training, commonly known as NEETs.
The speech comes ahead of next month’s Budget, as Healey faces pressure to cut public spending or raise taxes to reduce government borrowing costs.
He said government promises would be based on “fiscal discipline” and said he and Prime Minister Andy Burnham were united on meeting the fiscal rules. Fiscal rules are self-imposed constraints used by governments when making spending and taxation decisions.
Healey also said the Budget would give families and businesses “a bit of breathing space”, while acknowledging that the financial resources available to the current Labour government are more limited than those available to New Labour in the 1990s.
What happens next?
A major report by former minister Alan Milburn is expected to publish recommendations in the coming weeks on tackling the number of young people aged 16 to 24 who are not in education, employment or training. Healey said these young people had been “signed off, written off” and that the government would address the issue.
Helen Miller, director of the Institute for Fiscal Studies, told the BBC that following fiscal rules alone would not be enough to reduce debt. She said reducing the benefits bill, including removing support from some people, could be one way to cut national debt sooner. Her comments were presented as an analysis of possible fiscal options, not as a government policy announcement.
Wider measures announced
Healey also repeated plans to reindustrialise the country and said Rolls-Royce would invest an additional £300m in its British factories in Derby, Bristol, Glasgow and Rotherham.
He said the Union Learning Fund would be brought back in England to help working people gain skills in an era of artificial intelligence. The source did not specify how the fund would be financed.
FAQ
What is changing?
The Local Apprenticeships Service is being expanded from a limited pilot so that any English mayor can choose to use it.
When is the national rollout planned?
The Treasury says the scheme will roll out across England from March 2027.
How much additional funding was announced?
The department said an extra £100m would be provided, funded by savings from the Department for Work and Pensions.
Who may be affected?
The measures are aimed at young people, employers and local authorities in England. The wider benefits discussion could also affect people receiving welfare support, although the source does not set out specific benefit changes.
Bottom Line
Healey is linking welfare reform to employment and training, with the government presenting apprenticeships and first jobs as a route into work. The expanded apprenticeship service is due to roll out across England from March 2027, while broader benefits and fiscal decisions remain connected to the forthcoming Budget and expected review of support for young people.
Source
This report is based on information published by BBC Business.
