The Textile Centre of Excellence has welcomed a major new government initiative announced this week aimed at boosting youth employment and strengthening apprenticeship opportunities across key industries, including textiles and manufacturing.
The announcement introduces £3,000 incentives for employers who recruit young people aged 18–24 who have been unemployed for 6 months, alongside £2,000 payments for SMEs taking on new apprentices in the same age group. Crucially, eligible employers may be able to claim both the youth jobs grant and the apprenticeship incentive simultaneously, creating a highly attractive opportunity to invest in new talent while significantly reducing recruitment and training costs.
In addition, employers benefit from zero employer National Insurance contributions for apprentices under the age of 25, further reducing salary costs and making apprenticeships an even more compelling workforce solution.
The measures form part of a wider national effort to support young people into work while addressing critical skills shortages across the UK economy.
Prime Minister Keir Starmer said:
“We are determined to tackle the rise in youth unemployment by expanding practical routes into work, boosting apprenticeships and giving employers the clarity they need. These reforms underpin our ambition to create an economy that works for everyone, closing the skills gap and supporting more young people into meaningful employment.”
For the textiles and manufacturing sector, where demand for new skilled workers continues to grow, the initiative presents a significant opportunity to invest in the next generation of talent while strengthening workforce resilience, ensuring industries like textiles remain competitive, innovative, and sustainable for the future.
The Textile Centre of Excellence is encouraging employers across the sector to take advantage of these incentives and explore how apprenticeships can support long-term workforce development.
Shahban Aziz, Managing Director of the Textile Centre of Excellence, said:
“Having worked in central government on apprenticeship funding, this is a hugely positive step forward for our sector. The ability for employers to access both incentives together, alongside additional savings such as National Insurance relief, makes this an even more compelling opportunity.
The combination of direct employer support and a renewed focus on young people gives us a real chance to rebuild our talent pipeline. For textiles and manufacturing, this is exactly the kind of intervention needed to attract, train and retain the next generation of skilled professionals.”
As a long-established apprenticeship provider including being the sole provider of a number of apprenticeships, TCoE stands ready to support employers in navigating these new opportunities including as we hear more about the upcoming implementation dates and helping providers through delivering high-quality training aligned with industry needs.
Employers interested in accessing these incentives and strengthening their workforce are encouraged to contact the Textile Centre of Excellence to explore how we can support your apprenticeship and recruitment needs.
