The government’s Budget and the Office for Budget Responsibility (OBR) outlook confirm a tight fiscal environment alongside sustained long-term investment in UK infrastructure. More than £120 billion of capital spending has been committed across departments, including major programmes for energy networks, water infrastructure and the transition to clean energy. These decisions shape the environment in which members operate and influence the conditions for long-term workforce planning.
Budget measures place skills, labour supply and vocational progression at the centre of national priorities. The Government has announced more than £1.5 billion for additional employment and skills support over the next six years through the Youth Guarantee and the Growth and Skills Levy. This includes year-by-year allocations of £520 million in 26/27, £555 million in 27/28 and £495 million in 28/29, with further detail to follow. We look forward to welcoming Skills England to our CEO Council meeting next Tuesday, where our Energy and Utility Skills Partnership Growth and Skills Levy submission is a key agenda item as we look to April 2026 with ambition and expectation.
The Youth Guarantee will provide six-month paid work placements for eligible 18 to 21-year-olds who have been on Universal Credit and looking for work for 18 months. It will cover 100 percent of employment costs for 25 hours a week at the minimum wage, with wraparound support.
The government has also confirmed free apprenticeship training for under-25s working at small and medium-sized enterprises (SMEs). These measures aim to improve early career access, reduce the levels of young people not in education, employment or training (NEETs), and strengthen routes into technical and operational roles. For these initiatives to have their full impact, administrative and employment cost requirements must not become disincentives for SMEs, which play a critical role in the supply chains and businesses across our membership.
Our latest workforce analysis shows that by 2030 the sector will need to attract and recruit 312,000 new people. This includes 205,000 new jobs and more than 100,000 retirements. Growth is strongest in Power, Water, Waste and the Gas Networks. The report also confirms that 52 percent of new entrants will join at RQF Level 3 or below, and that the majority of growing roles are operational, technical and engineering. The Budget’s focus on post-16 reform, early careers support, apprenticeships and targeted transition programmes reinforces the routes that matter most for our members.
The importance for members is clear. Capital investment and regulatory expectations are rising. Deliverability depends on pathways that enable young people, adults, apprentices, career changers and those furthest from the labour market to access training that leads to safety, competence and progression.
Paul Cox, Group Chief Executive, said:
“Members are delivering essential national infrastructure and the Budget reinforces that investment and successful delivery rely on people. The Youth Guarantee, the Growth and Skills Levy, free apprenticeship training for young people at SMEs and the wider work of Skills England and the Office for Clean Energy Jobs combine to create practical opportunities to strengthen the routes into our sector.
Now is the time for policy detail. With April 2026 on the near horizon, members rightly expect the Growth and Skills Levy manifesto commitments, which after yesterday’s Budget now have confirmed funding, to become practically deliverable soon. Our workforce estimates highlight the scale of demand and we remain focused on securing a system where vocational routes, apprenticeships and progression pathways are accessible, clear and aligned to employer and member needs across the United Kingdom.”
Deliver the National Mission
The energy and utilities sector keeps the UK running, powering homes, protecting the environment and enabling economic growth. Through the Energy & Utility Skills Partnership, our members are helping to shape a national mission: to build a safe, skilled, and sustainable workforce that will deliver the UK’s future.
We invite senior leaders, policymakers and partners to engage with this mission, to turn ambition into action and investment into opportunity. Whether through collaboration or membership, every organisation has a part to play in strengthening the workforce that underpins the UK’s essential services.
Read our Strategy: Skills Strategy 2025-2030
Understand the scale of the challenge and the actions being taken.
Membership: Energy & Utility Skills Membership
A network of employers and partners working collectively to influence national policy, shape skills solutions, and deliver measurable impact
If you are a member, join our CEO Council: CEO Council
Shape strategy, influence decision-makers and drive cross-sector collaboration at the highest level, ensuring our sector continues to enable good, secure and long-term opportunities for every community in the UK.
