Budget 2026 confirms £100 million to take apprenticeship brokerage to every mayor in England, as part of measures to get more young people into work against a forecast rise in unemployment. The Office for Budget Responsibility expects unemployment to rise to 5.1% in the second quarter of 2027, before falling to 4.1% by the end of the forecast period, while total employment is expected to grow from 34.4 million in 2026 to 35.4 million in 2031.

The Budget states that nearly one million young people are not in education, employment or training. The government will respond to Alan Milburn's final report on young people and work, and to the Timms Review, before the end of the year, with a White Paper to follow early in 2027.

What the £100m does

The main new measure is £100 million across 2027/28 and 2028/29 to expand the Mayoral Apprenticeship Brokerage Pilots from 7 to 14 Mayoral Strategic Authorities. According to the Budget document, this will allow every current mayor to give tailored support to young people looking for apprenticeships and to help employers, particularly small firms, create more opportunities. The government launched a competitive call for the pilots in July, and Budget 2026 extends that offer to every area with a mayor.

The wider youth jobs package

The government also confirmed funding for the Youth Employment and Skills Package announced in the spring. It includes the £3,000 Youth Jobs Grant for businesses hiring eligible young unemployed people, an extension of the Jobs Guarantee to 22 to 24-year-olds on Universal Credit, and a £2,000 payment for non-levy-paying employers taking on young apprentices. The backdrop is tough: job-posting data cited in Budget coverage shows UK postings down 8% year-on-year, and graduate postings down around 12%.