Apprenticeships, workforce development and tackling skills shortages are firmly on the Government’s agenda following the Autumn Budget, announced on 28 October 2026.
With new investment in apprenticeship support, incentives to recruit young people and a renewed focus on technical and digital skills, there are some important developments for employers to be aware of.
At SEATS, we know that finding the right people, developing existing employees and planning for future skills needs can be challenging. So, we’ve picked out the key announcements and what they could mean for your business.
£100 million investment in apprenticeship support
One of the most significant announcements is £100 million to expand Mayoral Apprenticeship Brokerage Pilots from seven to 14 Mayoral Strategic Authorities across England during 2027–28 and 2028–29.
The aim is to help more young people access apprenticeships while supporting employers, particularly smaller businesses, to create opportunities.
For employers, this signals a continued focus on making apprenticeships more accessible and strengthening the connections between businesses, training providers and potential apprentices.
What does this mean for your business?
Whether you’re considering recruiting your first apprentice or developing an existing employee, apprenticeships can provide a practical way to build the skills your organisation needs.
You don’t have to navigate the options alone. SEATS works with employers to understand their requirements, identify suitable programmes and training partners, and provide support throughout the apprenticeship journey.
Financial incentives to recruit young people
The Budget also confirms previously announced financial incentives designed to encourage businesses to recruit young people.
These include:
- £2,000 apprenticeship hiring payment for eligible new young apprentices recruited by non-levy-paying employers.
- £3,000 Youth Jobs Grant for employers recruiting eligible unemployed young people.
These incentives could make recruiting and developing new talent more attractive, particularly for SMEs.
Eligibility criteria and scheme requirements will apply, so employers should check the details before making recruitment decisions.
Apprenticeships and major government contracts
The Government has announced that apprentices must make up at least 3% of the workforce on large government construction and infrastructure projects.
Businesses bidding for major government contracts will also be assessed on how they contribute to creating high-quality jobs, addressing local skills shortages and supporting young people into employment.
For construction, engineering and infrastructure employers, workforce development and apprenticeship planning could become increasingly important when securing and delivering major contracts.
Planning ahead will be key.
SEATS can help employers explore apprenticeship options, identify appropriate training and build workforce development plans that support their business objectives.
Upskilling existing employees remains important
Recruiting new talent is only part of the picture.
The Budget recognises the UK’s continuing challenges around technical and vocational skills, reinforcing the importance of developing the people already in our workplaces.
The Government has also announced the return of the Union Learning Fund, with £15 million per year from 2027–28 to support learning and training projects proposed by trade unions.
For employers, the wider message is clear: investing in existing employees is just as important as attracting new people.
Whether that’s developing new managers, improving digital confidence, strengthening technical expertise or helping experienced employees adapt to changing roles, the right training can make a real difference.
At SEATS, we help businesses identify practical training solutions that address genuine workplace challenges, rather than taking a one-size-fits-all approach.
Digital skills and AI continue to grow in importance
Artificial intelligence and digital transformation also feature in the Budget.
The Government has announced investment in local AI adoption initiatives, alongside wider measures supporting AI innovation, cybersecurity and digital infrastructure.
Initial local AI adoption partnerships will focus on selected areas outside Essex, but the direction of travel is significant for businesses everywhere.
As technology changes how we work, employers need to consider whether their teams have the confidence and skills to use it effectively.
From everyday digital skills to understanding how AI could improve productivity, workforce development will play an important role in helping businesses adapt.
Supporting young people into employment
With nearly one million young people not in education, employment or training, the Government has reinforced its commitment to improving opportunities for younger workers.
The Budget confirms a Jobs Guarantee for eligible 18–24-year-olds receiving Universal Credit, alongside measures designed to encourage employers to offer apprenticeships and employment opportunities.
For businesses struggling to recruit, this presents an opportunity to think differently about attracting and developing future talent.
Apprenticeships can provide a valuable route into employment, allowing individuals to gain recognised qualifications while developing practical skills in the workplace.
What about the cost of employing apprentices?
Employers should also be aware that the National Minimum Wage rate for apprentices will increase to £8.31 per hour from 1 April 2027, an increase of 3.9%.
This applies to apprentices aged under 19 and those aged 19 or over who are in the first year of their apprenticeship.
Employers planning recruitment or reviewing their training budgets should factor this into their workforce costs.
What does Budget 2026 mean for your business?
Although not every announcement will affect every employer, the Budget reinforces several important priorities:
- Developing the skills businesses need, both now and in the future.
- Creating more opportunities for young people to enter employment.
- Making apprenticeships more accessible to employers.
- Investing in technical, vocational and digital skills.
- Helping businesses respond to changing workforce requirements.
For employers, the challenge is turning these priorities into practical action.
That’s where SEATS can help.
We’re an independent, employer-led, not-for-profit organisation supporting businesses across Greater Essex with apprenticeships, training and workforce development.
We take time to understand your business, your people and your challenges before helping you find the right solutions.
Whether you’re looking to recruit an apprentice, upskill your existing team, develop your managers or plan for future workforce needs, we’re here to help.
Let’s make your workforce development plans work for your business.
Contact the SEATS team at hello@seats.org.uk
Read the full Government Budget 2026 document:
