Employer Incentive Payments

Young Apprentice Payment

Employers who recruit an apprentice aged 16-18 years or those between 19 and 24 years old with an Education, Health and Care (EHC) plan from their local authority, or who have been in the care of their local authority, will benefit from a government grant for apprentices of £1000. This grant helps cover additional training costs associated with the apprenticeship.

The government grant is paid in two instalments; the first 50% is disbursed three months after the apprentice has officially begun their program, and the second 50% is paid upon completion of the apprenticeship.

Hiring Grant - New for 1 August 2026

Starting from October 2026, non-levy paying employers will be eligible for a Hiring Grant of £2000 when they recruit new apprentices aged 16 to 24. This grant applies to apprentices beginning their training from 1st October 2026, provided they commenced their role with the employer within the last three months.

The Hiring Grant will also be distributed in two instalments; the first payment will be available once the apprentice has completed the initial 90 days of their apprenticeship. Further details will be provided in the next version of these funding rules.

Both incentives, the Young Apprentice Payment and the Hiring Grant, can be claimed simultaneously. If you are an SME employer who hires an apprentice aged 16-18, whose apprenticeship starts from 1st October 2026, and who was employed with you at least three months prior to their apprenticeship start date, you will be entitled to a total of £3000.