Tear up Tory apprenticeship rules to get 'Neets' into work, Andy Burnham to be told

A review led by former Cabinet minister Alan Milburn is expected to recommend dismantling apprenticeship rules introduced during the Conservative government to address the growing crisis of young people not in education, employment, or training, known as "Neets." The findings, set to be released in the autumn, could prompt Manchester Mayor Andy Burnham to push for reforms aimed at increasing access to apprenticeships for younger workers. Milburn’s review highlights concerns that the apprenticeship levy, introduced under Prime Minister Theresa May in 2017, has shifted focus away from providing entry-level opportunities for young people. Instead, employers are favoring higher-level apprenticeships, such as degree programs, which benefit more experienced workers. This trend has contributed to a decline in the number of apprenticeships available to younger individuals, particularly those from disadvantaged backgrounds. According to Milburn, the apprenticeship system was initially designed to serve as a direct pathway into the workforce for young people. However, he argues that the current structure has deviated significantly from its original purpose. Employers are increasingly using apprenticeships to upskill existing staff rather than recruit new entrants. This shift has left many young people without viable options for gaining work experience or qualifications. The levy requires companies with an annual payroll exceeding £3 million to contribute 0.5% of their wages toward apprenticeship training. While intended to fund vocational education, critics argue that the policy has created incentives for firms to prioritize advanced apprenticeships, which offer greater returns on investment. This has resulted in fewer low-level apprenticeships being offered, exacerbating the challenge faced by younger job seekers. Recent data shows that the number of Neets in England reached its highest level in over a decade, hitting 1.01 million between January and March 2026, a 55,000 increase compared to previous periods. In May, an interim report by Milburn revealed that 84% of Neets expressed a desire for either employment or training. His review is expected to propose substantial changes to the apprenticeship framework to ensure that younger individuals are prioritized. The review is anticipated to highlight the disparity in apprenticeship opportunities. For example, BAE Systems, one of the largest apprenticeship providers in the UK, offers more than 1,100 positions annually. However, over 27,000 candidates applied for these roles in 2026 alone, indicating a severe shortage of available spots. Similarly, E.ON’s degree apprenticeships have seen a dramatic rise in applications, with numbers tripling in the last three years, from 45 per role in 2023 to approximately 165 in 2026. Despite this surge in interest, the overall number of apprenticeships started by under-19s in England has dropped sharply since 2014/15, falling from around 130,000 to 75,000 by 2025/26. During the same period, the share of apprenticeships allocated to individuals under 25 decreased from over 57% to nearly 49%. Milburn described the rising number of Neets as a "moral crisis," emphasizing that the current situation is unsustainable. He stressed that the aging population relies heavily on the younger generation to support economic stability and social welfare systems. Without adequate opportunities for learning and earning, young people face diminishing prospects, which could have far-reaching consequences for society. The review is expected to advocate for policies that place young people at the forefront of the apprenticeship agenda. This includes revisiting the levy’s design to encourage more entry-level placements and ensuring that funding mechanisms align with the goal of expanding access for younger workers. The findings will inform future discussions on labor market reform and youth employment strategies. As the review nears completion, stakeholders across the public and private sectors are preparing for potential shifts in apprenticeship policy. With the number of Neets reaching record levels, the urgency for action is clear. The government is expected to respond to Milburn’s recommendations in the coming months, potentially reshaping the landscape of vocational training in England.