Incentive payments for hiring a new apprentice
The Government is delivering the largest package of apprenticeship employer incentives in over a decade. These incentives sit alongside fully or majority‑funded training for many apprentices aged under 25, and National Insurance relief where applicable.
Below is a clear breakdown of the four employer incentives available in 2026, who they apply to, and when they can be claimed.
1. Young Apprentice Payment – £1,000
Available now.
Applies when you recruit an apprentice who is:
- 16–18 years old, or
- 19–24 years old with an Education, Health and Care Plan (EHCP) or care‑leaver status.
Key points
- Available for employers of all sizes.
- Payments are processed by the training provider.
Paid in two instalments:
- 50% at 90 days
- 50% at 365 days
2. Foundation Apprenticeship Incentive – Up to £2,000
Available now.
Applies when you recruit a Foundation Apprentice who is:
- 16–21 years old, or
- 22–24 years old with EHCP, care experience, or a custodial background.
Key points
- Supports young people not yet ready for a full apprenticeship.
- Encourages progression into skilled employment.
- The apprentice may have joined your organisation up to 3 months before their apprenticeship start date.
Payments are processed by the training provider.
3. Non‑Levy Hiring Grant – £2,000
- Available from October 2026.
- Applies when a non‑levy employer recruits an additional apprentice aged 16–24.
Key points
- Available for employers of all sizes.
- Payments are processed by the training provider.
- Designed to support smaller businesses to expand their workforce.
- Sits alongside fully funded apprenticeship training for many 16–24 year‑olds (full funding for all 16–24s from August 2026).
4. Youth Jobs Grant – £3,000
Available now.
Applies when you hire an 18–24 year‑old who:
- Is on Universal Credit, and
- Have been seeking work for six months or more.
Key points
- Available for employers of all sizes.
- Payments are made directly to the employer.
- Managed by the Department for Work and Pensions (DWP).
- Designed to reduce recruitment risk and help employers engage young people who may struggle to access opportunities.
When applying for the incentive payment for hiring a new apprentice, make sure you have:
- Added the correct PAYE schemes, that you use to pay your apprentices, to your apprenticeship service account, in line with the service terms and conditions
- Only applied for eligible apprentices and you have documentation which can validate your claim, as listed in the apprenticeship funding rules
- Checked your training provider has the correct National Insurance Number for each of your apprentices, and that they have included this in their funding submissions