With almost one million young people not in work or education, and youth apprenticeship starts down 40 per cent over the past decade, the Government has launched the Youth Guarantee. This includes a £3,000 payment for employers who hire an unemployed 18 to 24‑year‑old who has been on Universal Credit and looking for work for six months.
For small builders, this might look like a straightforward way to reduce the upfront risk of taking someone on. We welcome that intent. But at the FMB, we’re concerned that funding alone won’t deliver lasting jobs or skills. From our experience in construction, schemes like this only work when young people are properly prepared for site work and supported once they start. That’s why we’ll be pushing Government to focus on work‑readiness and sustained employment - and why this article explains what you can access through the Youth Guarantee, and what to watch out for as the details are finalised.
What this means for small builders
In practical terms, the Youth Guarantee could give you access to:
- £3,000 for hiring an unemployed young person aged 18 to 24
- Fully funded apprenticeship training for eligible 16 to 24 year olds
- A £2,000 incentive for SMEs taking on a young apprentice in England
- National Insurance relief for young employees and apprentices
- Support from Jobcentres to help find and recruit candidates
The £3,000 Youth Jobs Grant
At the centre of the package is the Youth Jobs Grant. This will pay £3,000 to employers who recruit a young person aged 18 to 24 who has been claiming Universal Credit and actively looking for work for at least six months. The Department for Work and Pensions says the grant will be available across Great Britain, is expected to support around 60,000 young people over three years, and is due to be delivered from June 2026.
Alongside this, the Government is expanding the Jobs Guarantee, which will offer eligible 18 to 24 year olds a six‑month paid job of up to 25 hours a week at minimum wage, with employment costs covered by Government.
Further support is available through existing National Insurance relief, including no employer National Insurance contributions for employees under 21 and for apprentices under 25 on earnings below £50,270.
The FMB’s view
We welcome the ambition behind the Youth Guarantee and the recognition that employers are central to its success. Small building firms already train the majority of construction apprentices and often provide a young person’s first step into work.
However, we’re concerned that success is still too often measured by short‑term starts rather than sustained employment. In construction, around 47 per cent of apprentices do not reach end‑point assessment, often because they are not properly prepared for the job or supported to build skills over the long term.
Through initiatives such as the FMB’s Build Academy, delivered with CITB and Shooters Hill Sixth Form College, we have seen how employer‑led preparation, meaningful work experience and ongoing support can improve outcomes. We’ll continue to engage with Government on your behalf as delivery details are confirmed to ensure these schemes work in practice for small construction firms.
