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Introduction
According to a 2026 study by the Lancaster University Work Foundation, around 36% of employers have reduced the number of entry level jobs available to 16-24 year olds over the last 12 months. The rate is higher in medium sized employers (48%) and large employers (46%) than in smaller employers (24%) who are still more likely to take on younger entry level staff.
A total of 43% of employers overall have stated that their increased investment in AI and automation in their workplace has directly led to fewer entry-level roles being available and effectively replaced by technology. The rate of AI and automation replacement for entry level workers is even higher in larger companies at a rate of 60%.
Around 60% of employers believe that young people aged 16-24 are ready for the world of work and 59% of companies are actually offering placements, apprenticeships, internships or work experience to help entry-level individuals get into employment. It is also worth noting that 43% of employers are now using AI and automated systems to screen applicants for suitability for jobs.
Businesses looking to take on new staff or train up their existing workforce can apply for financial support in the form of grants. Funding is available in local areas from councils, enterprise support agencies, universities and sector skills based training organisations. 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 some 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 Business Recruiting and Developing Staff Funding Opportunities Available?
i) Greentech Business Growth Fund
Crawley Borough Council is providing funding to support businesses that operate in the green-tech or low-carbon sectors that will allow the generation of high tech jobs. Eligible costs can include investments in business premises, facilities, or equipment, product development, specialist research, training, or consultancy and market development, that can lead to job creation and business growth. Funding up to £50,000 is available.
Application Deadline: Applications are invited on an ongoing basis
ii) Flexible Skills Programme
The Welsh Government is providing financial support for businesses towards upskilling staff in the areas of forestry and timber supply chain skills, digital and AI skills, exporting skills, engineering and manufacturing training, creative sector skills and training, net zero skills and tourism and hospitality skills. Funding up to £50,000 is available.
Application Deadline: 31st March 2027
iii) Pembrokeshire Growth Grant
Pembrokeshire County Council is providing funding as part of the Local Growth Fund that aims to help businesses to grow, prosper and be sustainable, resulting in the creation and safeguarding of jobs, thereby improving the local economy. Eligible costs include specialist and technical training, such as training on the use of new machinery. Funding up to £50,000 is available to the maximum value of £7,500 per new job created at a business.
Application Deadline: Applications are invited on an ongoing basis
iv) Soirbheas Apprenticeship Grant Scheme
Soirbheas is providing funding for businesses in Glen Urquhart and Strathglass looking to develop or expand their business, provide new products or services or would like to increase their workforce by employing a modern apprentice. Funding up to £22,500 is available.
Application Deadline: 14th October 2026
v) Cardiff Growth Fund
Cardiff Council and Invest in Cardiff are providing funding to kick-start and grow the economy with a focus on creating a fairer, greener and prosperous future for Cardiff businesses. The fund will support businesses to relaunch, develop and grow. Eligible costs include funding related to creating new jobs and safeguarding existing jobs. Funding up to £20,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vi) Future Apprentices for Business Grants Programme
Wigan Council and Wigan Works is running a scheme that aims to help employers to invest in their business, meet recruitment needs and attract a higher calibre of applicants to apprenticeship roles. Apprentices can be selected from a talent pool of individuals identified by the council’s employment and skills programmes. Funding up to £5,000 is available.
Application Deadline: Applications are invited on an ongoing basis
vii) Knowsley Apprentice Grant
Knowsley Council is running a scheme that aims to support the recruitment of new apprentices and help develop the borough’s future workforce. The grant will provide employers with £500 per month for the first 10 months of an apprenticeship, making a total of £5,000 in funding.
Application Deadline: Applications are invited on an ongoing basis
viii) Tay Cities Work Experience Programme
Digitay is providing funding to employers in Angus, Dundee, Fife and Perth and Kinross to host technology based work experience placements with a view to strengthening students’ employability and career prospects and helping businesses build a sustainable talent pipeline for the future. Funding up to £3,000 is available.
Application Deadline: Applications are invited on an ongoing basis
How To Apply For Recruiting and Developing 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 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.