The government says some 50,000 young people are expected to benefit from a programme to expand apprenticeships as it looks to tackle youth unemployment.

The £725 million package, which was earmarked in the Budget and covers the next three years, will be used to create apprenticeships in sectors including AI, hospitality and engineering.

Apprenticeships for people under the age of 25 at small and medium-sized businesses will be fully funded as part of the package, removing the 5% that they currently have to pay.

The government is aiming to reverse a decline in the number of young people starting apprenticeships, which has fallen by almost 40% in the past decade.

The funding also includes £140m for a pilot that the Department for Work and Pensions says will allow local mayors to connect young people with employers and apprenticeship opportunities, although it is unclear exactly how the money will be used.

A programme of short courses in areas including AI, engineering and digital skills will also be offered from Spring next year, which the government says will be done in collaboration with the defence sector.

Prime Minister Sir Keir Starmer is expected to speak on Monday about the scheme.

He has previously said he wants apprenticeships treated with the same respect as degree courses.

“For too long, success has been measured by how many young people go to university,” the prime minister said.

“That narrow view has held back opportunity and created barriers we need to break.”

The government has expressed concern at the growing number of people being classified as Neets, which refers to 16 to 24-year-olds not in employment, education or training.

This has been trending upwards since 2021, with the latest figures showing nearly a million young people are now neither earning or learning.

Speaking to the BBC’s Sunday with Laura Kuenssberg, Work and Pensions Secretary Pat McFadden said young people had “not had a good enough deal” in areas such as housing and employment.

He also spoke about the government’s plans to get young people off Universal Credit and into jobs, which it is spending a further £820m on.

Some 55,000 six-month placements will be rolled out from next April for those who have been on a benefit for 18 months or more.

The placements will be rolled out in six parts of the UK with high youth unemployment and will be “fully subsidised” for 25 hours a week, paid at the legal minimum wage. The money will also fund training and work support.

Employers taking part in the scheme are yet to be announced, but ministers have said new opportunities will be created in sectors including construction, health and social care and hospitality.

In total, the government plans to create 350,000 training and work experience placements.

McFadden’s Conservative counterpart Helen Whately said the scheme showed that Labour had “no plan for growth, no plan to create real jobs”.