Employers may be able to access financial incentives when recruiting an apprentice. Depending on the size of the organisation and the age or circumstances of the apprentice, employers could be eligible for more than one payment.
Available employer incentives
| Incentive | Amount | Who qualifies | Payments |
|---|---|---|---|
| Young Apprentice Payment | £1,000 | Any employer hiring apprentices aged 16 to 18 years, or apprentices aged 19 to 24 years with an education, health and care plan (EHCP) or care experience. |
2 installments:
|
| SME Hiring Incentive | £2,000 | Non-levy paying small and medium-sized enterprises (SMEs) hiring apprentices aged 16 to 24 years. |
2 installments:
|
| Universal Credit Youth Jobs Grant | £3,000 | Any employer hiring 18 to 24 year olds receiving Universal Credit for 6 or more months. |
2 installments:
|
Young Apprentice Payment
Amount: £1,000
All employers who recruit an apprentice aged 16 to 18 are eligible for a £1,000 payment. The payment is also available for apprentices aged 19 to 24 who have an education, health and care plan (EHCP) or who are care experienced.
The payment is made via BESA in 2 instalments of £500. The first payment is made 90 days after the apprenticeship starts, with the second payment made 365 days after the apprenticeship starts.
SME Hiring Incentive
Amount: £2,000
From 1 October 2026, eligible non-levy paying small and medium-sized employers will be able to receive £2,000 for each apprentice aged 16 to 24 they recruit.
To qualify, the apprentice must have started employment no more than 3 months before the apprenticeship training begins.
The payment is made via BESA in 2 instalments of £1,000. The first payment is made after the apprentice has completed 90 days of their apprenticeship. The second payment is made after 365 days (or after 242 days for apprenticeships lasting less than 12 months).
Universal Credit Youth Jobs Grant
Amount: £3,000
Employers recruiting a young person aged 18 to 24 who has been claiming Universal Credit for 6 months or more may be eligible for a £3,000 grant.
The payment is made directly to the employer in 2 instalments: £1,800 after 2 months of employment and £1,200 after five months, subject to the scheme terms and conditions.
Any questions?
Incentive payments are subject to eligibility criteria and government funding rules. Funding availability and payment arrangements may change. If you are unsure whether your organisation is eligible, please get in touch.