Recent government announcements have introduced new incentives for employers to recruit and train young people, alongside significant changes to the apprenticeship system. For businesses in building services engineering already facing persistent skills shortages, these updates could have important implications.
They also reinforce a key point highlighted in BESA’s recent discussion about the UK’s growing NEET crisis. While the industry urgently needs new talent, almost a million young people are currently not in education, employment or training.
The latest measures are designed to address that disconnect.
£3000 incentive to recruit and train young people
A new £3000 employer incentive has been introduced to encourage businesses to recruit and train young people who have been on Universal Credit for six months or more.
This initiative forms part of a broader package aimed at tackling the rising number of NEETs aged 16 to 24, which is now estimated at around 957,000 across the UK, more than 12% of that age group.
The payment sits alongside an existing government programme that offers funding to employers who provide six-month work placements for individuals who have been on Universal Credit for 18 months or longer in specific regions.
Together, these measures are intended to help employers create more opportunities for young people who may otherwise struggle to access employment.
For building engineering services companies, this presents a practical opportunity. Many firms are actively looking for new entrants to address workforce shortages, and these incentives could help offset some of the costs associated with recruitment and training.
New short courses focused on priority skills
Government has also announced the first set of short courses, sometimes referred to as apprenticeship units, designed to provide targeted training in high demand technical areas.
The initial courses include:
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AI leadership, developing AI strategy
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Electric vehicle charging point installation and maintenance
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Electrical fitting and assembly
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Mechanical fitting and assembly
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Permanent modular building assembly
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Solar PV installation and maintenance
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Welding
These programmes are intended to provide more flexible training options, allowing individuals to develop specific skills that could later contribute towards a full apprenticeship qualification.
While the courses were originally expected to launch in April, delivery timelines remain uncertain because training providers have not yet been formally engaged.
There is also currently limited information about how these short courses will be assessed, or how prior learning will be recognised when progressing into full apprenticeships.
BESA will continue to monitor developments and share updates with members as more details emerge.
Leadership and management apprenticeships being defunded
Alongside these new initiatives, government has confirmed the first phase of apprenticeship streamlining, with 16 apprenticeship standards set to be defunded.
Among the programmes affected are several widely used leadership and management apprenticeships, including:
• Team Leader, Level 3
• Operations Manager, Level 5
• Chartered Manager, Level 6
Other programmes listed include standards covering facilities management, coaching, security, adult care and learning support roles.
The government’s stated intention is to rebalance investment and prioritise training opportunities for younger learners, particularly those entering the workforce for the first time.
However, further announcements are expected and additional apprenticeship changes will follow during 2026 as policy continues to evolve.
For employers who currently use management apprenticeships to develop their teams, it will be important to stay informed about when these changes will come into force and what the impact is on your apprentices.
Addressing the skills gap in building services engineering
These policy changes arrive at a critical moment for the building services engineering sector.
Research carried out through the Engineering and Building Services Skills Alliance (EBSSA) highlights that more than half of employers report hard to fill vacancies, while apprenticeship starts in key technical roles have declined in recent years.
At the same time, there is a significant pool of young people who are not currently engaged in education or employment.
If the right incentives, training opportunities and industry engagement come together, there is a real opportunity to connect that untapped talent with long term careers in building engineering services.
This will be essential if the industry is to deliver on major national priorities including the new hospital programme, infrastructure projects and the transition to net zero.
Support for BESA members
With changes to apprenticeships, new training incentives and emerging short course models, the skills landscape is evolving quickly.
BESA members who are currently using management apprenticeships or exploring new training routes should keep a close eye on further announcements as government policy continues to develop.
If your business may be affected, or if you want to explore opportunities to recruit and train new talent, BESA’s Skills Advisory Service can help.
The team can provide guidance on:
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apprenticeship and funding changes
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recruitment and training pathways
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government incentives for employers
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developing skills strategies for your business
For advice or support, contact the Skills Advisory Service at: sas@thebesa.com
Jill Nicholls, Director of Competence & Compliance