Call to Government: Making Apprenticeships Work for SMEs and Young People
Coach Core Foundation welcomes the Government’s commitment to improving opportunities for young people through apprenticeships and skills reform. Recent changes — including the removal of co-investment for under-25s in SMEs and increases to apprentice pay — are positive steps forward.
However, without further action, apprenticeships at Levels 2 and 3 risk becoming inaccessible to the young people and small employers who need them most. Apprenticeships remain one of the most effective routes into employment, yet starts at entry level continue to decline.
Coach Core’s employer research highlights the barriers SMEs face in offering apprenticeships, including rising costs, administrative burdens, limited capacity, and uncertainty around funding. Young people also encounter challenges such as financial insecurity, travel costs, and conflicts with welfare or council tax rules. These factors prevent apprenticeships from reaching those who could benefit most.
We are calling on Government to acknowledge and address these challenges, to ensure apprenticeships are accessible, affordable, and sustainable.
Our Key Policy Proposals
SMEs play a vital role in creating entry-level opportunities but face financial and practical barriers. We recommend:
- Refining the Growth and Skills Levy to better support SMEs.
Reinvesting unspent levy funding into Level 2–3 apprenticeships.
Allowing local areas to redirect unused levy funds to priority sectors.
Providing greater financial support for SMEs to cover wages and supervision.
Flexible use of levy funds for mentoring, supervision, and non-training costs.
Investment in high-quality mentorship and progression pathways to ensure apprentices complete and progress.
- Piloting free or subsidised travel for Level 2–3 apprentices.
- Reviewing welfare, council tax, and child benefit rules to make apprenticeships financially viable.
Introducing council tax exemptions or reductions for apprentices.
Why This Matters
Youth unemployment is rising, with growing numbers of young people at risk of becoming NEET (not in education, employment, or training). Apprenticeships remain one of the most effective routes into sustainable employment, yet entry-level opportunities at Levels 2 and 3 continue to decline, particularly for those facing barriers to participation.
Coach Core’s extensive experience supporting SMEs and young people has informed these proposals. Our knowledge of the challenges employers face—ranging from limited capacity and rising costs to uncertainty around funding—combined with insights from young people navigating financial, travel, and welfare barriers, has shaped practical, evidence-based solutions.
These proposals directly address these challenges by reducing financial and practical barriers for young people, supporting SMEs to create high-quality apprenticeship opportunities, and strengthening progression pathways. They align closely with the ambitions of the Youth Guarantee, ensuring every young person has access to employment, education, or training, and the National Youth Strategy, which seeks to increase participation, tackle disengagement, and improve long-term economic and social outcomes.
By implementing these measures, Government can ensure apprenticeships are accessible, affordable, and sustainable, helping young people secure meaningful work while enabling SMEs and communities to thrive.
More information
For more information, to show your support for this work, or to share further insights to broaden our evidence, please contact
Amy Fazackerley
Policy & Partnerships Manager
amy.fazackerley@coachcore.org.uk
07722 125099