Phillipson promises to ‘back the next generation' with training opportunities
Up to 45,000 training places will be funded by hiking the charge paid by employers for bringing in foreign workers by a third.
Education Secretary Bridget Phillipson said: 'A skilled workforce is the key to steering the economy forward, and today we're backing the next generation by giving young people more opportunities to learn a trade, earn a wage and achieve and thrive.
'When we invest in skills for young people, we invest in a shared, stronger economic future – creating opportunities as part of our plan for change.
'But everyone has a role to play in a thriving economy, and we're taking our responsibility seriously providing more routes into employment, it's now the responsibility of young people to take them.'
The plans for 120,000 training places include an extra 30,000 apprenticeship starts across the current Parliament.
The apprenticeship budget for 2025-26 is more than £3 billion.
From January 2026, funding will be shifted away from masters-level apprenticeships to focus on training at lower levels, although support will be maintained for those aged 16-21 and existing apprentices.
The immigration White Paper published earlier this month set out plans to hike the immigration skills charge by 32% to 'upskill the domestic workforce and reduce reliance on migration'.
As many as one-in-eight 16-24 year-olds are not in education, employment or training.
Sarah Yong, director of policy and public affairs at the Youth Futures Foundation said: 'International evidence shows apprenticeships are a highly impactful way to support young people to prepare for and access jobs, yet participation among under-25s, especially the most marginalised, has declined in recent years.
'With stubbornly high youth unemployment and inactivity, rebalancing the apprenticeship system can encourage investment in youth apprenticeships and is a first step in enabling more young people to access good work.'
The Law Society urged the Government to continue to fund masters-level apprenticeships for those aged over 21.
The society's president Richard Atkinson said: 'Level 7 solicitor apprenticeships continue to be the only route outside of university to qualify as a solicitor due to specific qualifications set by the Solicitors Regulation Authority.
'Apprenticeships play a vital role in promoting social mobility.'
Shadow education minister Neil O'Brien warned: 'The decision to scrap higher apprenticeships will do damage to the public services, particularly the NHS.
'It will make it impossible for many young people who don't go university to enter the professions.
'Numerous employers and professional bodies have warned about the damage scrapping higher apprenticeships will do, which is why this is being snuck out during recess.'
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