Government red tape risks blocking youth jobs as SMEs look to access apprenticeship scheme

LONDON, 9 February 2026: The Government’s apprenticeship reforms could unlock a youth hiring breakthrough or fall victim to bureaucracy. New research from Employment Hero, the global leader in HR, hiring and payroll software, shows 73% of SME leaders are ready to take advantage of new support announced in last year’s Autumn Budget. The same data also reveals a warning sign: 43% say navigating the apprenticeship system is too complex, threatening to deter them from hiring.

With 872,000 young people currently not in education, employment or training (NEET) – the highest level in over a decade – apprenticeships represent a proven solution with 78% of employers having experienced increased productivity through apprenticeships. However, for the UK’s 5.7 million SMEs, the message is clear: financial support alone won’t drive uptake if administrative hurdles remain. 

A perception shift

The survey also highlights that the perception of entry level career paths has shifted, with 78% of leaders holding a positive view of apprenticeships. The data suggests a ‘blended’ talent model is emerging: 46% of SMEs value apprenticeships and degrees equally, while 37% now value the vocational route more, leaving only a small minority (11%) who view them as less valuable.

“73% of SMEs want to embrace the Government’s apprenticeship push. That’s great news and highlights that the apprenticeship reform has the potential to help solve the youth employment challenge that currently exists in the UK economy.” Kevin Fitzgerald, UK Managing Director at Employment Hero, said. 

“There is clearly an appetite from SMEs to give apprentices a key role in driving their businesses forward. This has to be matched by the Government to improve access and remove the unnecessary red tape that might hold SMEs back from the productivity gains on offer with the apprenticeship scheme.”