Do You Know? The UK government says its Local Apprenticeships Service will be expanded to any English mayor who wants to use it, with a nationwide rollout planned from March 2027.
What happened
Chancellor John Healey told the Labour Party’s annual conference in Liverpool that the government should offer young people a first job with training and a wage rather than rely on benefit payments.
Healey said cutting welfare spending was “more than an economic must” and described it as “a moral duty”. He argued that benefits should provide a bridge into work rather than become a trap.
The speech came as ministers face pressure to reduce public spending or raise taxes ahead of next month’s Budget, which is intended to help lower government borrowing costs.
How the apprenticeship plan works
The Local Apprenticeships Service was initially planned as a pilot in a limited number of areas. Under the expansion announced by Healey, any English mayor who wants the service will be able to use it.
Local teams are expected to match young people with employers, including small businesses that have not previously taken on a trainee. The Treasury says the scheme will roll out across England from March 2027.
The Department for Work and Pensions is providing an additional £100m for the scheme, which the department says will be fully funded by savings from its crackdown on fraud.
Mayors will have responsibility for implementing the scheme. Healey said they understood which firms were hiring, which colleges were delivering training and which areas had been left behind.
Why it matters for employers and public finances
Healey pointed to about one million young people who are not in education, employment or training, known as NEETs. The article also says one in eight people aged 16 to 24 in the UK are NEETs, citing a forthcoming report by former minister Alan Milburn.
The government’s focus on apprenticeships places local authorities, colleges and employers at the centre of its response. Small businesses that have not previously hired trainees are specifically included in the planned matching process.
The chancellor said all government promises would be built on “the rock of fiscal discipline” and said he and Prime Minister Andy Burnham were united on meeting the fiscal rules. He also acknowledged that the money available to New Labour in the 1990s is no longer available.
Helen Miller, director of the Institute for Fiscal Studies think tank, told the BBC that fiscal rules alone would not be enough to reduce debt. She suggested reducing the benefits bill, including removing support from some people, could cut national debt sooner. Her comments are presented as an analysis rather than a government policy announcement.
Other measures mentioned
Healey repeated promises to reindustrialise the UK and said Rolls-Royce would invest an additional £300m in its British factories in Derby, Bristol, Glasgow and Rotherham.
He also said the Union Learning Fund would be brought back in England to help working people gain skills in an economy shaped by artificial intelligence. The source said it was initially unclear how the fund would be financed.
Healey did not set out a pathway for higher defence spending and declined to commit to retaining the pensions triple lock in Labour’s next manifesto.
What happens next
Healey would not set a timetable for the UK benefits bill to fall by the next general election. The Treasury’s planned rollout of the Local Apprenticeships Service is due to begin across England from March 2027.
The final instalment of Alan Milburn’s major report on tackling the number of young people who are NEETs is expected in the coming weeks, according to the source.
Frequently asked questions
Who announced the apprenticeship expansion?
Chancellor John Healey announced the expansion at the Labour Party’s annual conference.
Where will the scheme operate?
It will be available to any English mayor who wants to use the Local Apprenticeships Service, with a planned rollout across England from March 2027.
How much additional funding was announced?
The Department for Work and Pensions said an additional £100m would go into the scheme, funded by savings from its fraud crackdown.
Will the benefits bill fall before the next election?
Healey declined to set a timetable for that outcome.
Bottom Line
The government is tying its welfare reform argument to employment and training, while giving English mayors a larger role in connecting young people with employers. The scale of the impact will depend on implementation, employer participation and the government’s wider Budget decisions.
Source
This report is based on information published by BBC Business.
