The North East is to host one of two pilot schemes being established by the government in partnership with major tech companies and trade unions to provide entry-level jobs and technology training for underprivileged young people.
The North East pilot will launch in early 2027 around the North East’s AI Growth Zone, centred on the developing data‑centre clusters at Cobalt Park (North Tyneside) and Blyth.
The pilot project will be focused on young people aged 18-24 who are not in work or training. It will provide at least six months of work where participants will get hands-on job training in AI with leading tech companies including Accenture, Microsoft and Sage.
The other pilot will launch this summer in parts of Lancashire and Greater Manchester. The two together form part of a government initiative said by Technology Secretary Liz Kendall to be aimed at breaking down barriers for young people and ensuring growth and opportunity were felt all across the country, with everyone able to seize the opportunities of technology and AI.
Turning the tide
According to the government: “These initiatives aim to turn the tide on declining opportunities for young people and ensure the economy works for people in every part of the country. They will help drive forward the government’s plans to ensure nobody is left behind as more businesses adopt AI and provide young people with the invaluable skills they need in modern Britain as we seize the opportunities of AI across the economy.”
Liz Kendall said: “My priority is building an AI future that is pro-business and pro-worker, where AI enhances work, and people are supported through the jobs transition – not left to cope on their own.
“It’s clear the world of work is changing rapidly with the adoption of new technologies, and young people want a future where they can get on, get skilled, and get good jobs.”
Work and Pensions Secretary Pat McFadden said: “Young people deserve every opportunity to build a meaningful career, and that means making sure no one is left behind as our economy changes and technology advances.
“For too long, too many young people have faced a future with too few opportunities, which is why through our Youth Guarantee we are ensuring every young person has the chance to earn or learn.
“By equipping these young people with tech and AI skills, we are making sure that the opportunities created by this technological revolution are open to everyone.”
Tech skills for 400,000
The North East and North West pilot schemes will be coupled with TechFirst, the government’s nationwide tech skills programme, through which at least 400,000 students from some of the most disadvantaged schools would be supported to take up AI and tech skills in efforts to ensure opportunities were provided to those who needed them the most, said the Department for Work and Pensions (DWP). They would take part in TechFirst’s skills sessions, school competitions and extra-curricular activities, and industry engagement events – to upskill and inspire them towards a future in tech and AI.
The package also includes plans to roll out an AI bootcamp scheme across England to provide a pathway to work for young people at risk of becoming unemployed and out of education and training.
Practical help
In addition, the Early Careers Jobs Alliance will bring together government, employers, trade unions and young people, co-chaired by Mike Clancy. general secretary of Prospect, the science, engineering and technology union, and the government’s AI champion for the digital and technologies sector, Katie Gallagher,.
Backed by £20mn, the Alliance will aim support people to get into the workplace, learn on the job and build enriching careers. It will map how entry-level work is changing, producing practical help for businesses on how to redesign roles while maintaining entry-level pathways, and identifying early examples of good practice.
The Alliance will look at the digital and technologies sector first, to be followed by advanced manufacturing, clean energy, creative industries, defence, financial services, life sciences and professional and business services.
Sage
Steve Hare, CEO at Sage, said: “AI is creating some of the most exciting career opportunities in a generation and we need to ensure that young people from every background can access them. Through the AI Growth Zone, Sage is working with industry partners and government to open the door to skilled AI careers for young people in the North East who don’t yet have a clear route into employment. This is how we turn the promise of AI into real, inclusive economic growth, starting in Sage’s home region.”
Darren Hardman, CEO, Microsoft UK and Ireland said: “I believe programmes like this are crucial to ensuring the AI economy creates more opportunities for more young people, in every corner of the country. By combining practical experience with AI skills training, we can develop real pathways into high-quality careers, build a stronger talent pipeline, and drive greater social mobility for young people in the North East. We’re proud to support that effort alongside Accenture and Sage, and excited about the long-term impact this kind of collaboration can have.”
Matt Prebble, Head of Accenture in the UK & Ireland, said: “Too many young people across the UK are not currently in education or employment, often facing multiple barriers to getting into the labour market. At the same time, businesses need people with the skills to work in an increasingly digital and AI-driven economy.
“In the North East, we’re working with partners across the technology ecosystem on an initiative that brings together digital and AI skills with practical, real-world experience, helping more young people access opportunities and develop the work-ready skills needed for today and the future.
Prospect general secretary Mike Clancy said: “We have a short window of opportunity to shape the AI revolution so that it enhances and supports jobs, rather than destroying and undermining them, and it is right that government are bringing employers and unions together to think through these issues.
“Some of the most exposed roles in the economy are held by young workers, and it is vital that we do not cut off pathways to career progression and learning in the relentless search for efficiency.
“We have a duty to the next generation of workers to get this right, and we look forward to contributing to this important piece of work.”
Comment
The North East was designated an AI Growth Zone in 2025, creating the opportunity for thousands of new jobs and significant new investment, according to the North East Mayoral Strategic Authority (NEMSA). Momentum is already building, says NEMSA, with private sector interest, growing partnerships with industry and government, and new opportunities for people to gain the skills they need to succeed in an AI-enabled economy.
The pilot scheme just announced is an example of that, and of the growing importance of England’s mayors, including the North East’s Kim McGuinness, as partners in achieving the government’s top priority of economic growth, as discussed in North East Bylines on 5 June. It is welcome.
*This report is based on a press release from the Department for Work and Pensions.
