Federal Event
UK Government Launches Youth Employment Initiative
March 20, 2026
The UK Government has launched a comprehensive youth employment initiative backed by Β£1 billion to create 200,000 new jobs and apprenticeships for young people aged 16-24. This "New Deal" program includes multiple procurement opportunities such as grants, job guarantees, and apprenticeship incentives aimed at small and medium-sized enterprises (SMEs). Key components include a Youth Jobs Grant providing Β£3,000 per hire for businesses employing young people on Universal Credit, an expansion of the Jobs Guarantee scheme supporting over 90,000 subsidized jobs, and a Β£2,000 apprenticeship incentive targeting 50,000 new apprenticeships.
- Procurement professionals should note the significant funding allocated to youth employment programs, which will drive demand for workforce development services and SME engagement.
- Contractors and service providers specializing in training, recruitment, and apprenticeship management can leverage these incentives to expand offerings and partnerships with government and SMEs.
- The focus on SMEs indicates opportunities for localized and sector-specific employment solutions, particularly in industries like hair and beauty, as highlighted by industry leaders.
- Organizations involved in youth skills development and employment support should align proposals with the program's goals to maximize eligibility for grants and incentives.
Hair and beauty is one of the most powerful vehicles we have for getting young people into skilled, fulfilling work. We welcome any policy that lowers the barrier for businesses to say yes to a young person who is ready to learn.
— Caroline Larissey
This is a game-changer to tackle youth unemployment and inactivity, which FSB has campaigned about as levels remain stubbornly high after the pandemic.
— Tina McKenzie MBE
We warmly welcome this announcement, which will support young people to be ready for work and help organisations large and small to capitalise on the skills, talents and enthusiasm that young people have to offer.
— Brian Dow
Agencies
UK Government, Office for National Statistics, Skills England
Contracts
Β£3,000 per hire, , Β£2,000 per hire
Locations
Sources
- Major employment drive to help unlock 200,000 new jobs and apprenticeships for next generation · Professional Beauty · Mar 20