Government promises to deliver a "new deal for young people" with real opportunities to work and renewed social contract where hard work pays off
Ministers will unveil plans to crack down on poor‑quality university courses and shift investment further towards youth apprenticeships, as part of a 'new deal for young people'.
The deal delivers a renewed social contract with better opportunities to give young people real choices and real chances to get on, whether through university or high‑quality apprenticeships that lead to decent pay and long‑term careers.
It comes as too many young people feel university is the only route to success and are working hard for degrees that don't deliver the future they were promised, as they miss out on better opportunities while amassing thousands in debt.
While university was once a clear route to social mobility, particularly for working class people, the reality for today's generation of young people has significantly changed.
Many students hugely benefit from a degree, and the UK's university sector is rightly world leading. But the outdated belief that university is the only path to success has led to a 'degree by default' mindset - resulting in too many young people working tirelessly for degrees that don't unlock the best opportunities to make the most of their talent and hard work.
Meanwhile poor-quality courses have been profiting from students' earnest aspirations to achieve a degree and unlock life-changing opportunities.
Ministers will argue that the needs of this generation of young people have been ignored by successive governments, while the world of work evolved around them and left them behind without the skills they need to succeed.
As Alan Milburn's report outlined, around 1 in 7 young people who are currently not in employment, education or training have a university degree - underlining the need to reform the higher education system so it delivers better outcomes for young people.
This government is delivering a decisive break from that past and stepping in to fix a system that has held too many young people back. At the heart of the government's new deal for working people is further action to tackle poor-quality degrees, helping young people find and access the prestigious alternatives to build strong foundations for their working lives.
A major shift in skills funding towards apprenticeships for young people will help ensure students don't drift into university courses that aren't right for them. This will help reverse the long‑term decline in starts and refocusing the system on giving young people their first step on the career ladder.
It is part of a wider drive to tackle youth unemployment and will drive forward the government's ambition for two-thirds of young people to participate in higher-level learning - whether academic, technical or through apprenticeships.
Education Secretary Bridget Phillipson said:
Young people making choices about their future deserve to know that the investment they are making will lead to real opportunities and stable careers. For some that will mean going to university, and we are making this more accessible regardless of background, but for others it will mean technical or vocational routes.
By raising standards and cracking down on abuse of student loans we'll ensure our world-leading universities deliver real value for students and the taxpayer.
For these who choose to pursue a degree, the government is clear that courses must offer strong outcomes and real value for students, and university should remain a route to opportunity but only where it delivers.
Abuse of the system will not be tolerated, particularly where courses - often delivered through franchising - do not provide good value for students or the taxpayer.
As part of this, the government is drawing up options for legislation to limit the growth of some courses with consistently poor returns for students at some providers, making clear that the system must prioritise student outcomes over volume.
The government is working with the Office for Students (OfS), UCAS and sector partners to make it easier for students to access the information on course outcomes and wage returns. The government will also support people from low-income households to study courses in priority areas through reintroducing targeted maintenance grants from 28/29.
New rules will also mean franchised providers with 300 or more franchised students must register with the Office for Students or face losing access to student loan funding, ensuring proper oversight and accountability.
This action comes after decades where many students have been sold courses with poor outcomes, while some institutions have continued to expand provision that does not lead to better jobs or higher pay, and leaving graduates and taxpayers to pick up the tab.
Work and Pensions Secretary Pat McFadden said:
The decline in youth apprenticeship starts under the last government has kicked the ladder away from too many young people.
We are reversing that, and expanding opportunities for young people, by tilting funding towards the apprenticeships which will enable them to access high-quality training and those first jobs on the career ladder.
From the autumn we will also be offering small and medium-sized businesses £2000 for every young apprentice they take on who is under 25 and paying the full training cost - directing money towards where the opportunities are needed most.
Alongside action to reform higher education, the government will shift further apprenticeships funding into opportunities for young people, reversing the decline in starts and prioritising support for those at the start of their working lives.
The government is making a record £3.3bn investment in apprenticeships this year with an ambition to see 50,000 more apprenticeship starts for young people by 2029. This would reverse nearly half of the 40% decline in 16-24 apprenticeship starts over the past decade which has left young people locked out of the first rung on the career ladder.
The government has already tilted funding towards apprenticeships for young people by de-funding some of the courses used largely by older employees well established in their careers to free up more funding for young people, and short courses in key growth areas.
New foundation apprenticeships, exclusively for young people, are expanding into sectors like hospitality and retail, opening up more entry‑level routes into work, and helping young people move from education into lasting employment.
As part of this push, the government has directed Skills England to review funding rates for the apprenticeship standards used mostly by young people, to better prioritise how this funding is used. It will report in the autumn on whether the rates need to be changed to further shift provision towards young people and rebuild the apprenticeship ladder for the next generation.
This also builds on wider action through the government's Youth Guarantee which will ensure every young person has the opportunity to earn and learn. This includes financial incentives for businesses to hire young people who have been out of work, providing guaranteed subsidised jobs and reforming the Growth and Skills Levy - helping deliver up to 500,000 opportunities.
From ending a one size fits all education system and reforming SEND provision in schools, to tackling the harmful impact of social media, the government is stepping in at every stage of a young person's life to make sure they are supported to learn, grow and to succeed. That means getting the foundations right early on, backing young people through education and training, and opening up real routes into work so no one is left behind.
Taken together, this will ensure more young people can get a decent job, earn a good wage, and build a secure future - no matter where they come from.
