Jurisdiction(s):
United Kingdom

Budget 2025 to fully fund SMEs’ under-25 apprentices; 2026 Level 7 age cap (16-21) risks two-tier solicitor route; Law Society urges England scheme’s extension to Wales

Published on: 04 December 2025

Published by a Law360 reporter

Legal News

Article summary

Budget 2025

The plan will be financed through £725m set aside for the government’s growth and skills levy over this Parliament. According to Budget papers, the package backs apprenticeships for young people and brings in a reform that fully covers the cost of apprenticeships at small and mid-sized enterprises (SMEs) for eligible candidates under 25...

The levy, introduced in 2017, requires large employers with an annual payroll above £3m to contribute 0.5% of their wages bill. These funds support 95% of training costs for organisations that do not pay the levy (including SMEs) but wish to take on apprentices, with SMEs contributing the remaining 5%...

On 26 November 2025, Chancellor Rachel Reeves told Parliament that the decision to fully fund SME apprentice recruitment followed lobbying from the Federation of Small Businesses and Small Business Britain. She confirmed funding that will make training for under-25 apprentices entirely free for SMEs. A government spokesperson told Law360 on 27 November 2025 that additional details on the new £725m package will be provided in due course...

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