What the Milburn Review Means for Employers Hiring Apprentices in 2026

Former minister Alan Milburn, who authored the report, has warned of a growing “lost generation”, with most affected young people not even actively looking for work, and many having never held a job at all.

How did we get here?

The report doesn’t point to a single cause. Among the key drivers identified:

• Rising ill health and mental health challenges
• A weak market and limited vocational education
• A benefits and welfare system that hasn’t kept pace with helping people into work
• A sharp rise in neurodevelopmental conditions: the proportion of young NEET people with a mental health condition has multiplied nearly two and a half times since 2012

The picture is complex, and it’s been building for years. The UK has gone from performing around the European average in 2014 to becoming an outlier. By 2025, only Romania recorded a higher youth NEET rate among comparable nations.

Where do employers come in?

It would be easy to read this as a government problem, something for policymakers and welfare reform to sort out. But the Milburn Review is clear: education, employers, health and welfare must work together to find solutions. So businesses aren’t bystanders here, they’re a genuine part of the answer.

What do the apprenticeship reforms mean for you?

Recent reforms to the apprenticeship system reflect a clear shift in priority: putting younger people and entry-level opportunities front and centre. But it’s worth being clear: apprenticeships remain a powerful tool for developing talent at any age, and many businesses continue to use them to upskill and progress existing employees too. Both are valid, and both matter.

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Here’s what’s on the table for employers:

• Fully funded training for under-25s – Small and medium-sized businesses can now access 100% government-funded apprenticeship training for eligible learners under 25, removing the previous cost barrierentirely
• £1,000 incentive payment for hiring an apprentice aged 16–18
• No employer National Insurance contributions for apprentices under 25 – a meaningful reduction in staffing costs
• £3,000 Youth Jobs Grant - available for each young person aged 18–24 who has been out of work and on Universal Credit for at least six months
• New foundation apprenticeships and shorter ‘apprenticeship units' – offering more flexible routes into training

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For employers who have been on the fence, the financial case for acting now is a strong one.

This isn’t just about filling roles, it’s about building them

Whether you’re looking to bring in fresh talent or develop the people you already have, apprenticeships deliver real returns. You get someone trained to your standards, in your culture, with skills that are immediately relevant to your business. And for the wider picture, every employer who opens a door to a young person or invests in developing someone who’s been out of the workforce is contributing to something much bigger than their own headcount.

How we can help

We work with employers of all sizes to find the right apprenticeship standard for their team, whether that’s developing new starters or progressing experienced staff. Our current standards include:

·       Level 3 Customer Service Specialist - ideal for customer-facing teams looking to build consistency, confidence and quality inservice delivery

·       Level 3 Business Associate - a great entry point forthose developing core business skills and professional effectiveness

·       Level 4 Sales Executive - designed for those in or moving into a sales role, covering everything from pipeline management to customer relationships

·       Level 4 Associate Project Manager - perfect for individuals taking on project responsibilities and looking to formalise theirskills

Whether you’re thinking about a school leaver, a career changer, or a long-standing team member ready for their next step, there’s likely a route that works.

Get in touch with our team today, and let’s find the right fit for your business.

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