A newly announced government initiative promises to help around 200,000 young people to secure, or keep, job roles. The incentive-based scheme pays employers cash rewards for hiring workers under the age of 25.
The changes hope to reverse the near-40% decrease in young people taking up apprenticeships over the last decade. Almost one million young adults in the UK are currently neither in employment nor education.
What does the scheme offer?
The government’s plan to combat this problem is three-pronged, with different initiatives designed to tackle specific issues.
Of these, the following will be on offer to employers:
Youth Jobs Grant – This will entitle employers to £3,000 for each young person (aged 18-24) they hire that has been on Universal Credit and out of work for six months prior.
Jobs Guarantee – This is being rolled out to a wider age range (18-24 rather than 18-21) and guarantees six months of fully subsidised wages (at 25 hours a week) for unemployed people that have been on Universal Credit for 18 months or more. The wages are paid at whatever the minimum wage is at the time
Apprenticeship Incentives – SMEs stand to gain £2,000 for each new apprentice (aged 16-24) that they take on.
Who qualifies for the scheme?
Any UK business of any size can apply for the scheme.
When can I start to apply?
Each initiative will begin from a different date:
Apprentice Initiative – Begins April 2026
Youth Jobs Grant – No date mentioned as of time of writing, but reports suggest that it could be active as early as the end of spring.
Jobs Guarantee – This will be staggered in two stages, where an initial pilot will see it implemented in half-a-dozen regions in April 2026, while the whole country will be covered from sometime in autumn 2026.
Which areas will get the Jobs Guarantee first?
A pilot phase will be rolled out to the following areas in spring:
Birmingham and Solihull
East Midlands
Greater Manchester
Hertfordshire and Essex
Central and East Scotland
Southwest and Southeast Wales
“A great boost”
Speaking about the upcoming changes, insolvency expert and Senior Client Manager, Ben Westoby could see benefits for one struggling sector in particular. “The hospitality industry has been through the wringer over the last few years, but this might be a rare ray of sunshine, however small.
“As restaurants and bars typically employ younger staff, these new initiatives may actually help an industry that’s desperately in need of support”.
Indeed, celebrity chef, Tom Kerridge has publicly backed the scheme, saying that “these incentives will give our industry a great boost” when talking about apprenticeships in restaurants.
New opportunities for other sectors
The breadth of industries included in the apprenticeship scheme has also been expanded to include the following:
Mechanised welding
AI leadership and strategy
Electric vehicle charging point installation and maintenance
Electrical fitting and assembly
Mechanical fitting and assembly
Permanent modular building assembly
Solar PV installation and maintenance
Does your business need financial help?
We offer a range of alternative funding options that are designed to help businesses that haven’t been able to secure finance from traditional outlets.
Our experienced advisers can talk you through the best option for your business. Call us on 0808 280 6029, or email advice@forbesburton.com for a free consultation to see how we can help.
