Update on Skills, Apprenticeships and Workforce issues

Get involved

FDF’s offer on youth employment

Members are invited to shape a collective industry offer to help tackle youth economic inactivity and support more young people into work. We will shortly circulate a paper to FDF’s Corporate Affairs Group setting out a proposal for employers to build on existing initiatives by offering factory visits, workplace insight days and work experience opportunities. The proposal comes as the Government prioritises reducing the number of young people not in employment, education or training (NEET), while manufacturers continue to face labour and skills shortages. Members will be asked to provide feedback on the proposed approach at the next CAG meeting on 3rd November and their willingness to participate in potential pilot programmes where we have strong regional links. For more information, please contact caroline.keohane@fdf.org.uk.

Opportunity to influence occupational standards

Skills England is seeking employer feedback on occupational standards by 16th October to ensure they remain fit for purpose and aligned with employer needs. This presents an opportunity for manufacturers to help shape future skills and training requirements across the economy. More information can be found here: Shaping the future of occupational standards, by Tessa Griffiths and Sarah Maclean – Skills England.

Latest news

Youth employment incentives for employers

As part of the Government's Youth Guarantee, several employer incentives are now available to support the recruitment of young people:
• Youth Jobs Grant: £3,000 for hiring a young person aged 18-24 who has been claiming Universal Credit and seeking work for six months or more.
• Apprenticeship incentive for non-levy paying employers: £2,000 for employers recruiting apprentices aged 16-24, available from 1 October 2026 (incl. apprentices who were employed
from July 2026).
• Foundation Apprenticeship incentive: Up to £2,000 for employers recruiting eligible young people onto foundation apprenticeships.
• The Jobs Guarantee programme will also be expanded later this year to qualifying 22-24 year olds and, from April 2027, to eligible young people receiving health-related benefits. These measures may provide useful opportunities for manufacturers looking to address recruitment challenges while supporting young people into work.

Skills England sets priorities

Skills England's latest annual report identifies five priority areas for the year ahead: tackling skills shortages, increasing employer investment in skills, responding to AI adoption, improving employability skills among young people, and building a more responsive and locally integrated skills system.
These priorities align closely with many of the workforce challenges facing food and drink manufacturers, particularly around recruitment, training investment and digital skills. The full report can be found here: Skills England annual skills report 2026. 

Further apprenticeship reforms introduced

Several changes have been introduced to the apprenticeship system, including:
•   Defunding of a further 16 apprenticeship standards, including Team Leader and Chartered
Manager.
•  An increase in employer co-investment from 5% to 25% for new starts from 1 August 2026,
with under-25 apprentices exempt.
•  Removal of the 10% top-up on levy contributions.
• Reduction in the expiry period for newly generated levy funds from 24 months to 12 months.
•  Changes to apprenticeship assessment arrangements.

Members may wish to review workforce and training plans in light of these changes, particularly where apprenticeship programmes form a key part of recruitment and skills development strategies.

Trade Union Congress (TUC) Young People and Work report

The TUC has published a new report, Young People and Work - A call to action, which argues that apprenticeships should play a much greater role in tackling youth unemployment and inactivity.
The report contends that reforms to the apprenticeship system have reduced opportunities for
young people and recommends refocusing investment towards under-25s through a new Youth Skills Guarantee. Key proposals include rebalancing funding towards younger learners, increasing apprenticeship starts for young people, and ensuring levy reform supports entry-level routes into employment. The report is expected to inform debate around the Government's forthcoming response to Alan Milburn's review of youth employment and wider skills policy reforms.