This JIB has reviewed the measures announced in the Budget which will affect the electrotechnical and wider construction industry.
The Office for Budget Responsibility (OBR) has confirmed that economic growth is forecast to average 1.5% over the next five years, 0.3% lower than projected in March. For the electrotechnical sector stability is key, as companies seek to balance inflationary pressures and tight margins. It is also crucial to support the long-term investment in skills and workforce development required to achieve major strategic programmes – such as decarbonisation, building safety and digitalisation. Minimum wage rise reinforces the value of structured apprenticeships.
From 1 April 2026, the Government will increase the National Minimum Wage (NMW) to:
• £12.71 per hour for workers aged 21 and over
• £10.85 for 18–20-year-olds
• £8.00 for 16–17-year-olds and statutory apprentices
Through the JIB, the ECA and Unite the Union negotiated a 3-year wage deal, in June 2025, for the years 2026-2028. This has apprentice rates for Stage 1 at £8.16 (National Standard) and £9.14 (London) which is above the NMW. JIB members paying in line with the Agreement will be compliant when rates increase in April 2026. Employers must consider those aged 19 years and over, who are in the second year of their apprenticeship, and apply the higher of the JIB stage rates or the NMW for their age.
Unlike the flat minimum wage model, which risks early drop out, the JIB’s staged approach continues to support apprentice retention, training quality and long-term career progression.
Jay Parmar, JIB CEO, said: “The Government’s uplift to the National Minimum Wage for apprentices will be seen as positive by many, but the JIB model already goes further in rewarding competence, motivation and completion. Investing properly in those joining the industry is essential if we are to build the skilled, safe and future-ready workforce the country needs.”
£820m Youth Guarantee – early career pathways
The Chancellor also announced £820m of funding over the next three years to deliver a new Youth Guarantee, which builds on proposals first set out in November. Under the initiative, all those aged 18-21 years, in England, will be guaranteed access to an apprenticeship, education, training or employment support.
Co-investment payments – which small and medium enterprises (SMEs) have had to make when they hire an apprentice – were scrapped for those under the age of 22, in 2024. This cost has now also been removed for those hiring an apprentice aged 22 to 24.
We welcome the renewed focus on youth access to high-quality technical and vocational routes but stress that this must be matched by investment in completion, competence and employment standards.
“Creating opportunities for young people to start an apprenticeship is only the first step. Completion rates, real employment, vocational training opportunities, fair pay and progression are what ultimately deliver the competent workforce the UK depends on”, explained JIB COO, Andy Reakes.
EV mileage-based charge from 2028
The OBR confirmed that a new mileage-based charge on electric and plug-in hybrid vehicles will take effect from April 2028. This will be set at around half the current fuel duty level paid by petrol vehicles, generating around £1.4bn per year. As the use of electric vehicles in the electrotechnical sector is widespread, the JIB will monitor how the scheme is implemented and the impact on employers, travelling operatives, fleet management and project costs.
Infrastructure and planning
A further £100 million in funding, on top of the £400 million announced in June, will be invested to support EV charging infrastructure. In addition, £100 million of resource funding will be allocated to local authorities and public bodies to support the training of specialist staff to accelerate the roll out of public charge points. As a partner in The Electrotechnical Skills Partnership (TESP) the JIB endorses the Electrician Plus model which promotes the upskilling of qualified electricians in new technologies.
The budget reaffirms the Government’s commitment to delivering the flagship Planning and Infrastructure Bill with £48 million of additional funding to boost capacity in the planning system.
Devolved and regional investment to support growth
Chancellor Reeves confirmed £13bn of flexible investment for seven English mayors, alongside direct allocations of:
• £370m for Northern Ireland
• £505m for Wales
• £820m for Scotland
£1.3 billion of the new National Housing Delivery Fund will also be devolved across Greater Manchester, Greater London, Liverpool City Region, the North East, South Yorkshire, West Midlands and West Yorkshire.
We recognise the vital role of regional investment in supporting local infrastructure, public sector building programmes and skills initiatives – all of which are critical to demand for electrical and building services expertise.
Louisa Weinstein, JIB Head of Industrial Relations, said “This focus on regional investment to support growth aligns with our aims. Through our network of Regional Boards and Forums we communicate with metro mayors, combined authorities and LSIPs to promote the use of JIB members and explain what this represents – in terms of good employment standards.”
Commitment to competence and workforce development
Despite softer growth expectations, demand for competent electrical and building services professionals remains strong across domestic, commercial and industrial markets.
Jay Parmar, JIB CEO concluded: “The UK’s transition to net zero and the modernisation of building infrastructure hinge on a skilled and fairly-rewarded workforce. The JIB and ECS will continue to champion competence, quality and fair employment to support the long-term health of the industry.”
