The Government’s Budget 2026 confirms further investment in youth employment, apprenticeships and local skills support, with several measures relevant to employers in Cheshire & Warrington.

Key information for employers

• £2,000 apprenticeship hiring payment: SMEs in England will be able to receive a payment for each new employee aged 16 to 24 they take on as an apprentice.
• £3,000 Youth Jobs Grant: Businesses will receive £3,000 for hiring an eligible young person aged 18 to 24 who has been claiming Universal Credit and looking for work for six months.
• Jobs Guarantee: Eligible 18 to 24-year-olds who have been claiming Universal Credit and looking for work for 18 months will be offered a fully funded, six-month paid job. The Government will fund 100% of employment costs for up to 25 hours a week at the relevant minimum wage, alongside tailored employability support. The programme is expected to support more than 90,000 young people over three years.
• £100 million for local apprenticeship services: Funding over two years will enable current mayoral authorities to provide tailored support to help young people access apprenticeships and employers create more opportunities.
• Greater focus on jobs and skills through public procurement: Businesses bidding for major government contracts will increasingly need to demonstrate how they support high-quality jobs, address local skills shortages and create opportunities for young people. The Government is also targeting at least 3% for apprenticeships on large government infrastructure and construction projects.

These measures build on apprenticeship funding changes introduced from 1 August 2026. For new apprenticeship starts, the Government funds 100% of training and assessment costs, up to the relevant funding band maximum, for apprentices aged 16 to 24 employed by non-levy-paying employers.

What does this mean for employers?

The measures give businesses further opportunities to recruit young people, reduce recruitment and training costs, create employment opportunities and develop their future workforce.

Employers bidding for public-sector work should also consider how apprenticeships and youth employment can contribute to their social value commitments.

The Cheshire & Warrington LSIP works with employers to understand their skills needs and connect them with relevant apprenticeship, training and employment support.

Want to explore the options for your business? Contact the LSIP team at lsip@sccci.co.uk.