Financial support to hire a young person

Businesses looking to recruit new talent can now benefit from a range of enhanced government incentives worth up to £6,000 per apprentice, making apprenticeship programmes one of the most cost-effective ways to grow and develop a skilled workforce.

With support available for employers of all sizes, the latest funding package combines recruitment incentives, grants and National Insurance savings designed to encourage businesses to invest in apprentices and young people entering the workforce.

> Up to £3,000 for Non-Levy Employers

Non-levy paying employers can access the Apprentice Hiring Payment and New Starter Incentive, providing financial support when recruiting eligible apprentices.

Employers may receive:

• £1,000 for hiring an apprentice aged 16-18.
• £1,000 for recruiting an apprentice aged 18-24 who has an Education, Health and Care Plan (EHCP) or is a care leaver.
• An additional £2,000 New Starter Incentive for employing a 16-24-year-old who has joined the business within 90 days of their apprenticeship start date. This enhanced payment is expected to be available from October 2026.

This means eligible non-levy employers could receive up to £3,000 in recruitment support.

> £1,000 Apprentice Hiring Payment for Levy Employers

Levy-paying employers can also benefit from an Apprentice Hiring Payment worth £1,000 when recruiting:

• Apprentices aged 16-18.
• Apprentices aged 16-24 with an EHCP.
• Care leavers aged 16-24.

This funding helps to offset initial recruitment and onboarding costs while supporting opportunities for younger learners.

> New Youth Jobs Grant Worth £3,000

A significant addition to the support package is the New Youth Jobs Grant, available to all employers.

Businesses can receive £3,000 when they recruit an apprentice aged 18-24 who has been claiming Universal Credit for six months or more.

The grant aims to support young people into sustainable employment while helping employers access motivated new talent.

> Foundation Apprenticeship Incentive Up To £2,000

Employers offering Foundation Apprenticeships can receive a further £2,000 incentive.

This funding applies when recruiting:

• Young people aged 16-21.
• Individuals under 25 with an EHCP.
• Care leavers under 25.

The incentive is designed to encourage organisations to support learners taking their first steps into skilled employment and training.

> Save on National Insurance Contributions

In addition to direct payments and grants, employers can continue to benefit from valuable National Insurance savings.

Businesses do not have to pay employer National Insurance contributions for eligible apprentices under the age of 25 earning up to £50,270 per year. This provides an ongoing saving throughout the apprenticeship and further reduces employment costs.

So Why is Now the Time to Hire an Apprentice?

Apprenticeships enable employers to develop staff with the exact skills their organisation needs while boosting productivity, supporting succession planning and addressing skills shortages.

With potential financial support of up to £6,000 per apprentice, alongside training funding and National Insurance savings, there has never been a better time for businesses to invest in the next generation of talent.

Whether you're a small business recruiting your first apprentice or a larger organisation looking to expand your workforce, these incentives can significantly reduce the cost of hiring while delivering long-term benefits for your organisation and the wider economy.