The government has announced a major drive to create 200,000 new jobs and apprenticeships for young people
The young employment drive is backed by £1bn alongside large and small businesses.
It is intended to tackle the rising number of young people that are not earning or
learning, which has risen by 37% between 2021 and 2024.
Apprenticeship starts are down in young people
Over the last decade, apprenticeship starts are down by 40%, with nearly 1m young people are not in education, an apprenticeship, or employment, with this number rising 248,000 between 2021-2024.
To reverse this, near measures include a grant for businesses, which will give £3,000 for every young person (18-24) who has been on Universal Credit and spent at least six months looking for work. This alone is expected to bring 60,000 young people into employment over three years.
The age range for the Jobs Guarantee is to be expanded to 18-24 year olds, creating another 35,000 subsidised jobs. Alongside this, an Apprenticeship Incentive is to be introduced, giving SME businesses £2,000 for each new employee aged 16-24 for another 50,000 jobs.
Finally, the Growth and Skills Levy is to be reformed to give priority to young apprentices.
Prime minister, Sir Keir Starmer, said: “Backing young people is one of the most important investments we can make in this country’s future.
“We are determined to tackle the rise in youth unemployment by expanding practical routes into work, boosting apprenticeships, and giving employers the clarity they need.
“These reforms underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment.”
Federation of Master Builders (FMB) welcomes the move
The move may well bring more apprentices into the construction industry, especially with the £3,000 bonus for businesses hiring young people. Youth employment programmes have long been a part of construction organisations’ campaigns, including the FMB.
Brian Berry, chief executive of the FMB, said: “The Government’s announcement is an important and welcome step forward. Small building firms already train most construction apprentices and provide a first step into work for thousands of young people each year. A £3,000 hiring bonus can make a real difference by helping to reduce the upfront risk of taking someone on, particularly at a time when cost pressures remain acute for SME builders. With the right approach, this funding has the potential to unlock more opportunities for young people while supporting small firms that are keen to invest in the next generation.
“However, the success of this policy will depend on delivery. For small builders, cost is only one part of the equation. Employers need confidence that young people are genuinely work ready and that support does not stop on day one. Through initiatives such as the FMB’s Build Academy pilot, delivered in collaboration with the CITB and Shooters Hill Sixth Form College, we have seen how employer led preparation, meaningful work experience and ongoing support can turn a short term start into a sustained job. Funding must be easy to access, aligned with real vacancies, and backed by practical support if this scheme is to be genuinely transformative.”
The CIOB has also campaigned for government policies like this, as highlighted by CIOB policy and public affairs officer, Miruna Leitoiu, writing for PBC Today.
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