A major new government employment package has signalled renewed national backing for young people entering work, with plans to unlock 200,000 new jobs and apprenticeships and introduce the biggest apprenticeship reforms in a decade.
Announced on 16 March 2026, the package includes £1 billion in additional investment to help more young people access paid work, while also expanding support for employers through grants, apprenticeship incentives and wider reform of the Growth and Skills Levy.
At a time when many employers continue to face skills shortages and young people are looking for clearer routes into work, the announcement reflects growing recognition that practical, employer-led pathways remain essential to the UK’s future workforce.
A renewed focus on young people and early careers
The government says the new measures are designed to respond to rising numbers of young people who are not in education, employment or training, alongside a long-term decline in apprenticeship starts among younger age groups. The announcement states that apprenticeship starts among young people are down 40% over the last decade, while nearly one million young people are currently not earning or learning.
As part of the package, businesses will be able to access a new Youth Jobs Grant, worth £3,000 for each eligible young person aged 18 to 24 they hire, while SMEs will be offered a £2,000 apprenticeship incentive for taking on young employees aged 16 to 24. The government says this will support progress towards creating 50,000 more apprenticeships.
What this means for employers
The reforms point to a stronger policy environment for employers willing to invest in future talent. In addition to direct incentives, the government has confirmed plans to expand foundation apprenticeships and reprioritise levy investment toward areas linked to national growth, including engineering, manufacturing, digital, clean energy and construction.
For engineering and manufacturing employers, this reinforces the importance of building structured early-career pathways that do more than fill short-term vacancies. Strong apprenticeship experiences, clearer progression routes and closer links with education will remain central to attracting and retaining the next generation.
Why it matters to Next Gen Makers
At Next Gen Makers, we work with employers that recognise apprenticeship quality is not just a recruitment issue, but a long-term business investment.
National policy may be evolving, but the core challenge remains the same: helping young people understand the opportunities available to them, and helping employers create apprenticeship programmes that are credible, supportive and built to last.
Announcements like this are a positive signal. But turning policy into progress will depend on employers, educators and industry working together to create meaningful opportunities and clearer pathways into engineering and manufacturing careers.
Connecting industry with future talent
Next Gen Makers supports engineering and manufacturing employers to strengthen apprenticeship practice, raise visibility with future talent and build stronger links with schools and colleges.
If you are an employer looking to improve how your apprenticeship programme is experienced and promoted, we encourage you to start with our Apprenticeship Scheme Self Assessment or request more information about joining the network.