The Federation of Master Builders (FMB) has welcomed the Government’s announcement of a new £3,000 bonus for businesses that hire young people who have been out of work for at least six months. The measure forms part of a wider £1 billion youth employment drive to unlock up to 200,000 new jobs and apprenticeships. The FMB says small and medium‑sized building firms are well placed to help deliver the scheme if it reflects how SMEs recruit and train in practice.
The FMB has long argued that youth employment programmes should be judged on whether they lead to lasting employment, not just short‑term starts. It has warned that poor transitions into work, a lack of site readiness and limited ongoing support contribute to high drop‑out rates in construction, where around 47% of apprentices fail to reach end‑point assessment, and has called for employer‑led approaches that reduce risk for small firms and improve long‑term outcomes.
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.”
Berry continued: “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.”
