Smaller UK employers will get £2,000 for each new apprentice aged 16 to 24, the Department for Work and Pensions announced on 1 October. Employers don't need to apply; the payment goes through the apprenticeship training provider. It is part of a plan to create 50,000 more youth apprenticeships.
Key takeaways
- For non-levy employers, typically small and medium-sized businesses.
- Apprentices must be 16 to 24 at the start of training, or 15 in some cases.
- Paid in two £1,000 instalments: after 90 days, and after a year (242 days for foundation apprenticeships).
- The apprentice must still be employed when each payment is due.
- apprenticeships.gov.uk has been relaunched with guidance for employers and applicants.
Why does this help young job seekers?
It lowers the cost for small firms to take on someone with no experience, which should mean more openings. The Federation of Small Businesses says it can be combined with other support worth up to £6,000.
How do you find an apprenticeship?
Start at apprenticeships.gov.uk, where you can browse by interest and follow a step-by-step guide to applying. Our guides to careers without a degree and building a development plan can help you choose.
What is the background?
Youth unemployment and the number of young people not in education, employment or training have become a major concern in the UK. Apprenticeship starts among young people fell over several years, partly because small firms found the cost and paperwork hard to manage. The new payment is designed to make the first year cheaper for those employers, alongside a £2.5 billion youth employment package and a target of 50,000 more youth apprenticeships.
Who does it affect?
Young people aged 16 to 24 looking for paid training, and small and medium-sized businesses that do not pay the apprenticeship levy. Large employers that pay the levy are not covered. The Federation of Small Businesses says the payment can stack with other support worth up to £6,000, so the total package per apprentice can reach £8,000.
What should young job seekers do?
- Search apprenticeships.gov.uk and filter by your interests and area.
- Approach small local firms directly. Many have never hired an apprentice and may not know about the payment.
- Mention the incentive politely in a speculative email; it can tip the decision.
- Prepare a short CV that highlights reliability, school projects and any part-time work.
- Look at our guide to key professional skills employers want.
What happens next?
Payments are made automatically through training providers, which must pass them on within 30 working days of receiving the money. The relaunched apprenticeships.gov.uk is the main place to find openings and guidance.
The money can be spent on any employment costs, such as work equipment, travel or uniform. The payment is also part of a wider pilot expanding apprenticeship brokerage to all mayoral authorities in England, backed by £100 million over two years.
Source: GOV.UK, 1 October 2026.
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