27 November 2025
Autumn budget: £820m for Youth guarantee and free apprenticeships for SMEs
In her Autumn Budget, Chancellor Rachel reeves announced £820m in funding for the Youth Guarantee, and the removal of the 5% top up for apprentices in small and medium businesses (SMEs).
This means that SMEs won’t need to pay anything towards the training costs of apprentices under the age of 22. The announcements also include that large businesses will have half the time to spend their levy – down from 24 months to 12 months.
The £820m funding for the Youth Guarantee will go towards six months paid work placements for 18-to-21-year-olds on Universal Credit.
Alongside the Chancellor’s announcements, the Office for Budget responsibility forecast higher GDP growth in 2025 then flat growth from 2026 onwards, lower than previously forecast although still around 1.5% per annum. Inflation is expected to be 3.5% in 2025 and 2.5% in 2026.
Raed FE Week’s coverage of the announced spending.
This means that SMEs won’t need to pay anything towards the training costs of apprentices under the age of 22. The announcements also include that large businesses will have half the time to spend their levy – down from 24 months to 12 months.
The £820m funding for the Youth Guarantee will go towards six months paid work placements for 18-to-21-year-olds on Universal Credit.
Alongside the Chancellor’s announcements, the Office for Budget responsibility forecast higher GDP growth in 2025 then flat growth from 2026 onwards, lower than previously forecast although still around 1.5% per annum. Inflation is expected to be 3.5% in 2025 and 2.5% in 2026.
Raed FE Week’s coverage of the announced spending.
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