The UK Government has announced a £1 billion package aimed at creating 200,000 jobs and apprenticeships for young people, alongside what it describes as the largest reform of apprenticeships in a decade.
The measures are designed to tackle rising youth inactivity. Nearly one million young people are currently not in education, employment or training, with numbers increasing significantly between 2021 and 2024.
The package includes a Youth Jobs Grant, offering employers £3,000 for each 18–24-year-old hired who has been on Universal Credit for six months, and an expansion of the Jobs Guarantee scheme to include 18–24-year-olds, supporting more than 90,000 subsidised jobs over three years.
An additional £2,000 incentive for SMEs taking on apprentices aged 16–24 has also been introduced, alongside changes to the Growth and Skills Levy designed to prioritise younger apprentices and improve access to training.
The Government says the programme will support almost one million young people and create up to 500,000 opportunities to earn or learn over the next three years.
Viki Bell, CEO of the Construction Equipment Association (CEA), said:
“Creating clear routes into engineering and construction careers is essential if the UK is serious about tackling the long-term skills shortages facing our sector. Construction equipment manufacturers and the wider supply chain rely on a steady pipeline of technically skilled people, and apprenticeships remain one of the most effective ways to develop that talent.
“Measures that support employers to bring young people into the workforce, particularly through apprenticeships and practical training, are a positive step. The focus now must be on ensuring these initiatives work in practice and give businesses the confidence to invest in the next generation.
“We will continue to work closely with our skills partners to gain a clearer understanding of how CEA members can make the most of these changes.”
Enginuity, the sector skills body for engineering and manufacturing, will also be speaking at the CEA Members Forum next week (25th March 2026, Trelleborg, Leicester), where it will provide an update on the current apprenticeship landscape and answer members' questions.
The full Government announcement can be viewed here:👇