Following today’s Budget, the Association of Employment and Learning Providers (AELP) has welcomed greater clarity on the timelines for publication and sequencing of the Milburn Review, Timms Review, Devolution White Paper and the government’s Ten-Year Plan. However, with limited new detail on skills in the Budget itself, important questions remain ahead of the Milburn Review about the direction of reform and its implications for employers, learners and training providers.
AELP welcomes the commitment to fund the previously announced £100 million employment support package from outside the Growth and Skills Levy, alongside the requirement for apprentices to make up at least 3% of the workforce on large government construction and infrastructure projects. Delivering on these commitments will depend on employers having the confidence and support to recruit, backed by access to high-quality training. While business rates relief for smaller employers will help.
Successive increases in the National Minimum Wage have added to employers’ recruitment costs in recent years. The apprentice minimum wage, for example, has risen from £6.40 to £8.00 over the past two years, so the smaller increase to £8.31 is welcome.
Labour has also paused its manifesto commitment to equalise minimum wage rates for younger workers, in line with advice given to the Low Pay Commission earlier this year. This is a measured approach that recognises the difficult circumstances many employers face.
Ben Rowland, Chief Executive of AELP, said:
“A clearer timetable for the government’s devolution, skills and employment reforms is welcome. But dates alone won’t give employers and training providers the certainty they need. Ahead of the Milburn Review, big questions remain: what will change, how will the reforms fit together, and will funding for high-quality training, including apprenticeships, match the government’s ambitions?
“The Chancellor’s pro-business rhetoric was encouraging. If government wants more opportunities for young people, it will need to use its forthcoming reviews to ensure this translates into practical support for employers to recruit and train. Ensuring every pound raised through the Growth and Skills Levy is invested in apprenticeships and employer-led training would be a great starting point.”
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AELP response to Budget 2026: Clearer reform timetable welcome, but key questions remain
Following today’s Budget, the Association of Employment and Learning Providers (AELP) has welcomed greater clarity on the timelines for publication and sequencing of the Milburn Review, Timms Review, Devolution White Paper and the government’s Ten-Year Plan. However, with limited new detail on skills in the Budget itself, important questions remain ahead of the Milburn Review about the direction of reform and its implications for employers, learners and training providers.
The Association of Employment and Learning Providers (AELP) is a national membership body, proudly representing organisations operating in the skills sector. AELP members deliver a range of training and vocational learning – including the majority of apprenticeships as well as Skills Bootcamps, 16-19 Study Programme, Adult Education Budget and more.
For further information or interviews please contact Matt Strong, Head of External Communications, AELP, on 07920 161685 or [email protected]