Chancellor announces Union Learning Fund restoration and apprenticeship brokerage expansion

The Chancellor announced on 28 September 2026 two skills measures relevant to FE and apprenticeship providers: the restoration of the Union Learning Fund and an expansion of local apprenticeship brokerage services across England.

Both measures are funded through DWP savings, with the Budget due to confirm the detail.

Union Learning Fund restored at £15 million a year

The Union Learning Fund — which was cut several years ago — will be restored, with £15 million a year of new funding confirmed. Before it was cut, the ULF generated around 180,000 learning opportunities every year through trade union networks.

The restored fund will not be restricted to union members. It is intended to reach working people through their employers and existing skills programmes, with support potentially covering:

• English, maths and digital skills
• Training for roles in advanced manufacturing and other growth sectors
• AI-related upskilling to help workers adapt to changing workplaces

Trade unions will act as intermediaries, drawing on their existing workplace relationships to reach learners who might not otherwise engage with training. The announcement does not set out whether ULF funding will flow through unions directly, through employers, or through registered training providers — that detail is expected at the Budget.

What to watch: How the fund is administered, and whether training providers will need to work through union intermediaries or can be contracted directly.

Apprenticeship brokerage expanded to all 14 Mayoral Strategic Authorities

The government piloted local apprenticeship brokerage in a small number of Mayoral Strategic Authorities following Budget 2025. The 28 September announcement expands this to all 14 MSAs with directly elected mayors, from Spring 2027, with £100 million of additional funding across two years.

The brokerage model is designed to connect young people with small employers to create apprenticeships in their local areas, with mayors leading the service and local labour market needs shaping the offer. The announcement frames this as a complement to existing national provision — not a replacement — noting that:

• Government continues to fully fund training and assessment costs for all eligible apprentices aged 16 to 24
• The £3,000 Youth Jobs Grant remains in place

The government’s longer-term ambition is to put strategic authorities in place across the whole of England by the end of 2028.

What to watch: How mayoral brokerage services will interact with existing provider and levy relationships; whether Spring 2027 means April or later in the year; whether the £100m covers brokerage service costs only or includes any additional training funding.

Source: Chancellor backs young people into work by supporting jobs — HM Treasury, 28 September 2026