New Growth and Skills Levy changes announced can help build the next generation of skilled workers

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Thousands of young people could benefit from new routes into technical education, training and apprenticeships following a significant and additional package of reforms announced by the UK Government.

Yesterday’s package of measures supports several key priorities as outlined in the Energy & Utility Skills Strategy 2025-2030.

Read our full response from earlier this week here.

The measures announced include:

  • A new apprenticeship bursary for students whose families receive Universal Credit.
  • Additional college places to increase access to training.
  • Free apprenticeship training for eligible under-25s.
  • Up to £8,000 of support for small and medium-sized businesses hiring young apprentices.
  • Relief from National Insurance contributions for hiring apprentices under 25.
  • Measures designed to remove barriers to opportunity and help more young people gain the skills, qualifications and experience needed for future careers.

Government also confirmed that the apprenticeship bursary and free training for eligible under-25s will be funded through the £1 billion additional investment in the Growth and Skills Levy announced in May 2026

The announcement is particularly welcome for sectors facing long-term workforce and skills challenges, where sustainable career opportunities are available but attracting and developing future talent remains a priority.

For the energy and utilities sector, the workforce challenge is not limited to graduate and higher-level technical roles. Significant demand is also expected at RQF2 and RQF3 levels, which often provide the first step into skilled employment for young people entering the workforce. These are the occupations most likely to benefit from a stronger focus on apprenticeships, technical education and local training provision.

Creating clearer routes into technical education will help more young people take their first steps into the sector before progressing into apprenticeships and long-term careers. This is particularly important as employers seek to replace retiring workers, develop new capabilities and attract a broader and more diverse workforce.

Apprenticeship success at the scale the UK is now seeking will require a stronger and more visible talent pathway. Too often, entry-level activity remains fragmented, locally variable and difficult for young people to navigate. At RQF1, the UK currently lacks a simple, high-tempo, ambitious and expectant model. The Energy & Utility Skills Group Sector Entry model has proven how this can be achieved, creating pathways that introduce people into careers in the industry and helping employers connect to new and diverse talent pools.

The announcement is also relevant for young adults aged 21 to 24, many of whom are looking for alternative routes into work, retraining opportunities or a pathway into a skilled profession. The Government says the package will help create 50,000 new youth apprenticeships, offering more opportunities for young people to develop valuable skills while earning.

Paul Cox, Group CEO of Energy & Utility Skills said:

“We welcome this announcement and, in particular, the Government’s focus on breaking down barriers that can prevent young people from accessing technical education. Regardless of background, everyone should be able to access rewarding and skilled careers.

“The measures are especially significant for young adults aged 21 to 24, who may be looking for alternative routes into work, retraining opportunities or a pathway into a long-term profession and for where our sectors have opportunity at scale.

“This aligns strongly with the priorities identified by the Energy & Utility Skills Partnership CEO Council, which continues to champion action on workforce resilience, skills development and attracting a broader, more diverse range of people into our sectors. The challenge and opportunity that we face is not just filling vacancies today, but building the workforce we will need for the decades ahead.”

The announcement is particularly encouraging given the Energy & Utility Skills Group evidence recently submitted to the APPG on Apprenticeships, which highlighted the need to tackle barriers to entry, strengthen progression routes and support a larger pipeline of future apprentices.

As details of the package emerge, businesses should consider how they can engage with schools, colleges, training providers and local partners to promote careers, create apprenticeship opportunities and support young people into long-term employment.

Employers should also review how they can maximise the benefits of new apprenticeship support measures, including the £2,000 hiring incentive for smaller businesses recruiting apprentices aged under 25 from October 2026.

Energy and Utility Skills Group continues to work with employers, training providers and colleges to strengthen routes into technical education, apprenticeships and skilled careers across the energy and utilities sector.

To discuss how we can work together to support clearer career pathways, apprenticeship planning or sector entry, contact collaborate@euskills.co.uk.

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