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Introduction
According to the Hiring Trends Report 2026 by TotalJobs, 58% of UK businesses surveyed feel that they are confident they will hire the talent they need within the first half of 2026. Hiring activity is still highly cautious overall for smaller businesses, as only 25% of SMEs plan to increase recruitment activity in 2026 and 31% are evaluating plans on how their current teams and structure needs to change to meet future demand. There are also some emerging trends set to assist hiring activity over the next 12 months.
i) Skills Based Hiring Approach
In terms of recruitment activity, 70% of recruiters state that finding candidates with the right skills is a challenge. There will be a predicted trend shift towards skills-based hiring in 2026, with 43% of those recruiting planning to take this approach. The traditional approach to filtering candidates for job roles has been based on qualifications and previous job experience. A skills-based hiring approach means that when looking at candidates, businesses evaluate required skills competencies rather than just looking at traditional qualifications and similar job experience. The net effect of this approach means there is access to a wider talent pools for any given job role.
The top skills that businesses are looking for from candidates are soft skills at 38%, such as communication, team working and problem solving, and technical skills at 37%, such as IT skills, data analysis, industry specific machinery skills and research and innovation ability.
ii) Using AI to Automate Manual Recruitment Tasks
On average, recruiters spend 11.7 hours per week on manual tasks, with 61% stating they find the time pressure involved in filling roles challenging. The ability to use AI to automate regular manual hiring tasks can help free up capacity. The large number of different areas where AI can assist with hiring make it a highly versatile and effective option.
Businesses already using AI in recruitment processes use it as follows:
- Job advert writing (39%)
- Drafting employment contracts (29%)
- Reporting on recruitment analytics (29%)
- Posting adverts (28%)
- Managing budgets (28%)
- Managing applicant database (27%)
- Tracking applicant status (27%)
- Scheduling job interviews (25%)
- Checking applications (24%)
- Reviewing documents (25%)
Businesses looking to take on new staff or train up their existing staff can receive financial support in the form of grants to help reduce the overall burden of some of the costs. Funding is available in local areas from councils, enterprise support agencies and universities and colleges. Businesses can receive funding to help train and develop new skills for their existing employees, create new job roles, take on apprentices or have graduate or intern placements. In many cases match funding from the employer is required to part pay new salaries or for training courses and activities.
What Are Some Of The Latest UK Recruit and Develop Staff Funding Opportunities Available?
i) Transforming Newhaven Grants
Newhaven Enterprise Zone in conjunction with Lewes District Council is running a scheme for Businesses in the Enterprise Zone area to access funding to invest in transformational growth projects. Eligible costs include funding towards creating new jobs in the local area as part of projects. Funding up to £30,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Flexible Skills Programme
The Welsh Government is providing financial support available for businesses towards upskilling staff in the areas of forestry and timber supply chain skills, digital skills, exporting skills, engineering and manufacturing training, creative sector skills and training, net zero skills and tourism and hospitality skills. Funding up to £25,000 is available.
Application Deadline: 31st March 2026
iii) Economic Development Grant Scheme
Shetland Islands Council is running a scheme providing grants for businesses to help them fund projects that will enable them to grow. Eligible costs can include, but are not limited to, buildings, new equipment and covering salary costs for new jobs created as part of projects. Funding up to £25,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Work Based Traineeships
Weston College is providing incentive payments for Somerset based employers to help them recruit and train people aged 16-24 on a traineeship basis, which can last from 6 weeks to a year. Funding up to £10,000 is available.
Application Deadline: Applications are invited on an ongoing basis
v) Export Accelerator
East Midlands Chamber is running a scheme for businesses that are new to exporting or looking to expand into new overseas markets to access 1-to-1 support, up to £2,000 of free export training and grants to cover costs such as training, consultancy and salaries to create new export related jobs. Eligible areas include Derby, Nottingham and Nottinghamshire.
Application Deadline: 31st March 2026
vi) SkillsBoost
Worcestershire Growth Hub is providing support for businesses in Bromsgrove to apply for funding towards the cost of training and upskilling or reskilling their workforce. 50% match funding is available. Eligible funding includes helping businesses upskill or reskill staff at a reduced cost, redeploy employees to maximise effectiveness and bespoke courses for sector specific organisations. Funding up to £6,000 is available.
Application Deadline: 31st March 2026
vii) Bradford Graduate Recruitment Scheme
The University of Bradford is running a scheme providing funding for businesses in the local area to help them cover the costs of employing a graduate from the University of Bradford on an internship basis for a period of ten weeks. Funding up to £2,570 is available.
Application Deadline: 31st March 2026
viii) Chichester District Council Fast Track Grants
Chichester District Council is providing funding to help viable start-up businesses and existing independent businesses to implement projects that create jobs, help businesses to grow, and benefit the local economy. Standard funding is available for grants up to £2,000 all year round. Funding requests for over £2,000 are reviewed by periodic panels at certain times of the year.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Recruit and Develop Staff Funding Schemes
Full details about how to apply for schemes and the eligibility criteria is available on each individual scheme page on the relevant website. Any deadlines, who can apply and what eligible costs the grants will cover will also be outlined on these pages. Interested individuals and businesses can speak to funding advisors based at each provider who can guide them through requirements and eligibility criteria to see if the relevant funding is a match with their needs and help them to apply. There are also application forms and other supporting guidance available on scheme pages as well.