3 Nov

Hiring an Apprentice? Employer Grants and Financial Incentives Available

Apprenticeship incentives, grants and funding don't need to be confusing. From hiring payments to funded training and National Insurance savings, we’ve broken down some of the financial support employers across England could benefit from when recruiting an apprentice. Information correct as-of October 2026.

Written by:

TDM

What financial support is available when hiring an apprentice?

£1000 Young Apprentice Payment

£2000 SME Apprenticeship Hiring Grant

£3000 Youth Jobs Grant

National Insurance savings

Funded Apprenticeship Training

£1000 Young Apprentice Payment

Eligible employers can receive £1000 to support their apprentice in the workplace, if they are one of the following:

·      Aged 16 to 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31st August)

·      19 to 24 years old with an education, health and care (EHC) plan

·      19 to 24 years old and have been in care

You can spend it on any costs related to their employment, e.g. their work equipment, travel costs or uniform.

£2000 SME Apprenticeship Hiring Grant

If your organisation does not pay into the apprenticeship levy, you may be eligible to receive a £2000 payment when recruiting an apprentice aged 16 to 24 years old.

You can spend it on any costs related to the apprentice’s employment, e.g. work equipment, travel costs or uniform.

£3000 Youth Jobs Grant

Eligible employers can receive £3000 per qualifying job outcome when recruiting an individual aged 18 to 24 who has been out of work and receiving universal credit for at least six months.

National Insurance savings

Employers pay no National Insurance contributions for apprentices aged under 25 years old who are earning under £50,270 annually.

Funded Apprenticeship Training

If your organisation does not pay into the apprenticeship levy, the Government will pay up to 100% of the training cost (up to the funding band maximum), if the apprentice is aged between 16 and 24 at the start of their apprenticeship training.

Are there local apprenticeship grants and incentives available?

Employers may also be able to access additional funding and incentives through local councils or regional apprenticeship initiatives.

Thinking about recruiting an apprentice?

Speak to our team to review which our apprenticeship programmes align with your organisational skills needs and find out which of the above your business may be eligible for.

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