Finding the right people and developing the skills of your existing team takes time and investment. If you run a building business in Scotland, funding is available that could help with the cost of recruiting new employees, training your team and building the skills your business needs.
Skills shortages remain a real challenge for building firms in Scotland. Our latest State of Trade Survey found that 72% of firms were affected by a lack of skilled tradespeople, with 30% saying skills shortages had stopped them from expanding their business.
With skills in short supply, funding that helps small building firms recruit and train people could play an important role in developing the workforce they need for the future.
Here are two funding opportunities that could help you invest in your team and grow your business.
Funding at a glance
| Funding | What it can support | How much is available |
|---|---|---|
| Youth Jobs Grant | Recruiting an eligible young person aged 18 to 24, including into an apprenticeship or another eligible role | £3,000 per eligible employee |
| New Flexible Workforce Development Fund | Training and upskilling eligible employees through colleges in Scotland | Up to £15,000 per employer each year, with up to £5,000 for each eligible employee |
Youth Jobs Grant
Available across Scotland, England and Wales, builders can now apply to access the Youth Jobs Grant which provides £3,000 to employers who recruit an eligible young person aged 18-24 years who has been on Universal Credit and unemployed for a period of at least 6 months.
This grant could be used for apprentices or any other job roles within your business which offer at least 25 hours per week and last for at least 4 months.
How the grant works
The grant is be staged across 4 months, with £1,800 paid from 6 weeks and £1,200 after 18 weeks. It aims to support up to 60,000 job opportunities over 3 years, approximately 20,000 per year for this financial year and the following 2 financial years, closing to new vacancies in October 2028.
The Youth Jobs Grant is open to employers of all sizes and sectors.
Employers with 0-3 employees can claim a maximum of funded employee at any time, employers with 4-9 employees a maximum of 2 funded employees at any time and employers with 10 or more employees must not claim more than 20% of their total number of employees as funded employees.
Apply for the Youth Jobs Grant online →
The role of the Department for Work and Pensions (DWP)
Once you have completed the application process, eligible vacancies will be passed to the DWP’s work coaches to match the vacancy to eligible and suitable young people. They will consider the participating young person’s work readiness, specific employment aspirations and circumstances.
DWP will then go through the employer’s application process. This application process is at the employer’s discretion and could include a CV, Personal Statement and/or direct interviews.
Find out more about the Youth Jobs Grant
- Visit Gov.uk
- Call the Department for Work and Pensions (DWP) on 0800 169 0178
- Use the DWP online enquiry form
New Flexible Workforce Development Fund
The Scottish Funding Council has launched a New Flexible Workforce Development Fund (NFWDF) with up to £15,000 in training support available per employer each year. A maximum of £5,000 of which can support each eligible worker. The funding and training will be delivered by colleges across Scotland.
The NFWDF has a £10 million budget and will equip colleges to upskill in-work parents, carers, young people and other priority groups. The NFWDF runs from August 2026 through to 31 December 2027 and is open to employers of all sizes across all sectors of the economy, including the construction industry.
Who is eligible?
To be eligible, employees must earn less than £33,000 per year and meet at least one of the following criteria:
- Parents or carers of a child aged under 18 living at home
- Individuals aged under 24
- Care-experienced or disabled individuals aged under 30
The funding is limited and is allocated regionally and will typically be awarded on a first-come, first-served basis.
So, register your interest with your local college as soon as possible.
Are there any restrictions?
Employers must already implement Fair Work practices or formally commit to actively working towards them as a condition of the funding agreement.
This NFWDF funding cannot be used to provide additionality to apprenticeship provision. This means it cannot be used to support full-time students nor used to provide industry qualifications or training that businesses are legally required to provide.
The fund is for upskilling in a wide variety of areas including management and leadership training, chartership qualifications or bespoke training initiatives.
What could this funding mean for a small building firm?
For a small building firm, taking on another employee or investing in training is a significant commitment. These funding opportunities could help with some of that investment, whether you are looking to bring a young person into the business or develop the skills of people already in your team.
The right option will depend on your business and employees, so check the eligibility criteria and funding conditions carefully before applying.
Frequently asked questions
How much is the Youth Jobs Grant?
The Youth Jobs Grant provides £3,000 to employers who recruit an eligible young person aged 18 to 24. The funding is paid in stages, with £1,800 paid from six weeks and £1,200 after 18 weeks.
Can the Youth Jobs Grant be used for apprentices?
Yes. The grant can be used for apprentices or other eligible roles within your business that offer at least 25 hours of work per week and last for at least four months.
Can small building firms apply for the Youth Jobs Grant?
Yes. The Youth Jobs Grant is open to employers of all sizes and sectors. The number of funded employees you can have at one time depends on the size of your business.
How much is available through the New Flexible Workforce Development Fund?
Employers can access up to £15,000 in training support each year through the New Flexible Workforce Development Fund, with a maximum of £5,000 available to support each eligible employee.
Who is eligible for the New Flexible Workforce Development Fund?
Eligible employees must earn less than £33,000 a year and meet at least one of the fund's additional criteria. These include parents or carers of a child aged under 18 living at home, people aged under 24, and care-experienced or disabled people aged under 30.
What can the New Flexible Workforce Development Fund be used for?
The fund can support a range of upskilling, including management and leadership training, chartership qualifications and bespoke training initiatives. It cannot be used to support full-time students or to pay for industry qualifications or training that businesses are legally required to provide.
How can I apply for the funding?
Applications for the Youth Jobs Grant can be made online. For the New Flexible Workforce Development Fund, employers are encouraged to register their interest with their local college, with funding allocated regionally and typically on a first-come, first-served basis.
Authors
Gordon Nelson
Director, Federation of Master Builders Scotland
