LONDON, February 9, 2026: Government apprenticeship reforms could provide a breakthrough in hiring young people or fall victim to bureaucracy. New research from Employment Hero, the global leader in HR, recruitment and payroll software, shows that 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, which threatens to deter them from hiring.

With 872,000 young people currently not in employment, education or training (NEET) – the highest level in over a decade – apprenticeships represent a proven solution with 78% of employers seeing an increase in productivity through apprenticeships. However, for the UK’s 5.7 million SMEs, the message is clear: financial support alone will not be enough to drive adoption if administrative barriers persist.

A change in perception

The survey also highlights that perceptions of entry-level career paths have changed, with 78% of leaders having a positive view of apprenticeships. The data suggests that a ‘mixed’ talent model is emerging: 46% of SMEs place the same value on apprenticeships and qualifications, while 37% now place more importance on the career path, leaving only a small minority (11%) who view them as less valuable.

“73% of SMEs want to take up the Government’s apprenticeship initiative. This is great news and highlights that apprenticeship reform has the potential to help solve the youth employment challenge that currently exists in the UK economy.” Kevin Fitzgerald, UK managing director of Employment Hero, said.

“There is clearly a desire on the part of SMEs to give apprentices a key role in the development of their business. This must be accompanied by the government to improve access and remove unnecessary administrative formalities which could prevent SMEs from benefiting from the productivity gains offered by the apprenticeship programme.”