UK prime minister Keir Starmer announces £725m government skills reform package to create 50,000 new apprenticeships

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According to the UK Department for Work and Pensions, the funding includes £140m for a pilot which will see local mayors connect young people – especially those not in education, employment or training (NEET) – with thousands of apprenticeship opportunities at local employers.

It will also cover the full cost of apprenticeships for eligible young people under 25 at small and medium-sized businesses. Furthermore, short courses will be offered from April 2026, including a new Level 4 apprenticeship in AI.

This announcement follows the news just days earlier of a £820m funding package to support young people on Universal Credit in the UK with training and employment.

Starmer met with McLaren apprentices at the company’s global headquarters in Woking to announce the latest package. McLaren has apprenticeships open throughout the year in various departments across the business, all of which are advertised on the UK Government Apprentices website. Other opportunities at McLaren include work experience, industrial placements and graduate programmes.

Additionally, McLaren Racing currently partners with the University of Sheffield Advanced Manufacturing Research Centre to deliver engineering Level 3-6 apprenticeships each year. It also offers two graduate programmes, as well as internships and trainee programmes.

“Apprenticeships are a critical pipeline for developing the next generation of talent. They provide an immersive pathway for young people to gain practical experience and learn in real world environments,” Nick Collins, CEO of McLaren Automotive, commented. “At McLaren we recognise the importance of investing in people and skills to create the world’s most extraordinary supercars. We are proud to inspire and equip the next generation to continue this tradition of excellence.”

Read more: JLR pilots drone inspections to cut factory downtime and improve safety

JLR’s drone pilot signals how digital tools can reshape warehouse inventory checks and factory roles, with some UK engineers now being trained to fly drones.

Investing in pathways for young people into industries like automotive, manufacturing and logistics will be key to ensuring the future of these sectors, which are already grappling with skills shortages and increasingly ageing workforce. “A couple of years ago we were talking about the war for talents, and to be honest –especially in countries like [those in] Europe, we are aging,” Dr Gisela Linge, vice president of global logistics at Autoliv, said at ALSC Europe this year.

It’s not just about getting young people into automotive logistics either; upskilling digital competencies will be incredibly important as the industry shifts towards increased digitalisation. Training and upskilling the workforce is a key aspect of the AI roadmaps of BMW, SEAT and Schaeffler, and other examples such as JLR training engineers to fly drones to conduct warehouse inventory checks show how it is vital that people develop skills in line with the introduction of new technologies to supply chain operations.