Minister for Skills, Baroness Jacqui Smith recently co-chaired a Youth Guarantee and construction sector roundtable with CITB CEO Tim Balcon.

Here, the Minister outlines how the Youth Guarantee will back young people, support employers and work with partners to create clear pathways into employment in sectors like construction.

It is clear that to get Britain growing again we must get Britain building again. But to deliver the 1.5 million homes in England the Government has committed to by the end of this parliament, as well as retrofitting homes so they are energy efficient for the future and delivering the 10-year infrastructure plan, we must support the construction industry with the skilled workforce it needs to deliver these ambitions.

To do this, the Government has a role to play in showcasing to young people the wide range of career opportunities within the sector from skilled trades to engineering and project management—many of which do not require a traditional university route. This makes construction an inclusive industry where individuals can gain practical skills, earn while they learn, and build long-term, rewarding careers.

I recently witnessed this firsthand when visiting a Kier Group construction site in Hackney. As part of my visit, I had the opportunity to speak directly with apprentices about the opportunities the sector has opened up for them and the skills they are developing through their apprenticeship.

How is the Government supporting young people into employment?

The Youth Guarantee is the government’s commitment to backing young people, supporting employers, and working with partners across Great Britain to create clear pathways into employment and education for young people to ensure the next generation can step into sectors like construction to meet growing skills demands.

That is why it is investing an additional £2.5 billion into the Youth Guarantee and Growth and Skills Levy over the next three years. As part of this investment, employers will be incentivised to hire young people aged 18–24, who have been unemployed and on Universal Credit for over six months, through a £3000 Youth Jobs Grant.

This is in addition to introducing a Jobs Guarantee, offering employers the opportunity to take on a young person aged 18-24, who is out of work and has been claiming Universal Credit for 18 months, for six months. With the Department covering 100% of wage costs and offering tailored training support.

The Youth Guarantee will also provide opportunities for work and training places for young people not in employment, offering employers the chance to work with government and local colleges to shape training and work experience programmes to meet skills needs, as well as an opportunity for employers to get to know young people before hiring.

Alongside college courses, apprenticeships are a gateway to the construction sector, and I hope this further investment into the Growth and Skills Levy will support construction employers to offer more of them. This includes, from October 2026, non-levy paying employers, who are typically small- and medium-sized enterprises, in England, benefiting from a £2000 incentive when recruiting an apprentice aged 16-24. This is in addition to the Government’s commitment to fully fund apprenticeships for all eligible 16-24-year-olds for non-levy payers from August 2026.

We’ve also introduced new foundation apprenticeships to give young people a route into careers in critical sectors, such as construction, enabling them to earn a wage while developing vital skills. Foundation apprenticeships are also underpinned by additional funding for employers up to £2,000 to contribute to the extra costs of supporting someone at the beginning of their career.

Backing the Youth Guarantee and Building Futures: How the construction industry can work in partnership with government

As part of my recent visit to a construction site in Hackney, I also met with the sector’s industry leaders on how it is attracting and developing young talent. This discussion brought to life how opportunities in construction provide young people with the chance to build new skills and grow in confidence, but also how employer’s investment into young people really pays off in businesses through a skilled and committed workforce.

It was clear that the industry is already working hard to onboard young talent, including by partnering with the new Construction Technical Excellence Colleges (C-TECs) and offering industry placement opportunities to T-level students and college learners, and is keen to closely collaborate with government through the Youth Guarantee to support even more young people into construction.

We’ve already started to build these partnerships with the likes of Kier Group and their supply chain committing to deliver 2,000 additional opportunities for young people linked to the Youth Guarantee. This includes engaging with young people through the company’s Kierriculum programme, offering work experience, Jobs Guarantee, and skills bootcamp places, as well as developing new apprenticeships and increasing engagement with Youth Hubs, but we want to go further. Which is why I would ask you to consider how your organisation can engage with the range of incentives and support the Youth Guarantee can offer.

The construction industry is essential to economic growth and the development of communities. This is why we are supporting the pipeline of future construction workers through a £625m investment over the Parliament in our construction skills package. But whilst we are doing what we can to futureproof the construction workforce, we know the sector also needs workforce and skills support right now.

The Youth Guarantee presents a genuine opportunity to provide this support and bring government and industry together around a shared ambition: to invest in our young people and the sector, so it can continue to grow, innovate, and meet the needs of society in the years to come. We need employers to be part of this story. Only by working together, we can lay the foundations for a generation of skilled, confident workers who will build the homes, infrastructure, and communities Britain needs for future generations.