Government to expand foundation apprenticeships into hospitality

Foundation apprenticeships are to be expanded into hospitality and retail from April 2026, the government has confirmed.

 

First introduced in May 2025 for sectors such as construction, digital, social care, engineering and manufacturing, foundation apprenticeships provide young people aged 16 to 21 with entry-level, paid jobs in addition to structured training.

 

These are also available to those aged between 22 and 24 who are either care leavers, prison leavers, prisoners or have an Education, Health and Care Plan (EHCP).

 

The programme lasts for a minimum duration of eight months and is supported by a £2,000 incentive for employers hiring foundation apprentices aged between 16 and 21. 

 

In October, the government will also launch a separate £2,000 incentive for SMEs recruiting any apprentices under the age of 24. 

 

Staff studying for apprenticeships are exempted from National Insurance Contributions, reducing the cost of hiring early career workers.

 

These reforms come under a wider package of announcements that were delivered by work and pensions secretary Pat McFadden earlier this week in what was dubbed a ‘New Deal’ for young people.

 

Initiatives included a £3,000 Youth Jobs Grant for every young person an employer hires aged 18 to 24 who has been on Universal Credit and looking for work for six months, as well as further reforms to the Growth and Skills Levy to prioritise young apprentices, secure value for money and give school and college leavers more opportunities to develop careers in new industries.

 

The reforms have led to a cut in funding for several widely used leadership standards, including the Level 5 Operations Manager, Level 3 Team Leader, and Level 6 Chartered Manager apprenticeships, but Level 4 Hospitality Manager and Senior Culinary Chef programmes have retained their status.   

 

In response, Adele Oxberry, founder and chief executive of training and apprenticeship provider Umbrella Training, said: “These programmes have played a hugely important role in developing leadership talent across the hospitality sector. While the withdrawal of funding for management apprenticeships is disappointing for many employers, we recognise and welcome the government’s focus on creating more opportunities for young people entering the workforce. The key now is ensuring businesses continue to invest in leadership development while also taking advantage of the new opportunities being introduced.”

 

She urged businesses to make use of the limited window to enrol learners on affected management apprenticeships before 30 August, ahead of funding being withdrawn from 1 September.

 

Oxberry added: “This is a moment for employers to review their apprenticeship strategy. At Umbrella Training, we’re helping organisations navigate the transition – whether that means enrolling final cohorts onto existing programmes, introducing new leadership development pathways, or using the new Foundation Apprenticeships to build the next generation of hospitality talent.”

 

Chef Tom Kerridge said of the reforms: “I welcome this announcement, which will provide amazing opportunities to young people looking to get into this industry and others, to learn a trade and earn along the way.

 

“I’ve trained apprentices in my restaurants, and I know what a great start it gives them in their careers, and these incentives will give our industry a great boost. I’m pleased Pat McFadden has made this a priority.”

 

Kate Nicholls, chair of UKHospitality, commented: “Including hospitality in foundation apprenticeships delivers on another of UKHospitality’s key asks and means there are now several supported pathways into work where employers are financially supported to reduce their costs.

 

“With employment costs rapidly increasing, engaging with the government to introduce these incentives has been one of our priorities and can support businesses to help reduce the cost of employment. 

 

“These announcements show the benefit of working closely with business groups to design measures and policies that are practical, cost-saving and work for businesses. It’s crucial this approach continues and that the government ensures that people of all ages have routes to learn and develop skills in hospitality.”

 

It comes after concerns were raised over rising youth unemployment, with the ONS revealing last month that unemployment among people aged between 16 and 24 was at 16.1%, its highest in more than 10 years.