The government has announced 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 Alan Milburn’s report outlined, around one in seven 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. 

A 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.

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.

Alongside action to reform higher education, the government will shift further apprenticeships funding into opportunities for young people.

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. 
 
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.