Financial Support for Hiring Apprentices
Hiring young talent brings fresh ideas and strengthens an employer’s workforce, enabling them to develop the skills needed to meet the demands of the future. Note: ‘We’ refers to the Department for Education.
| Payment | Age Eligibility | Schedule |
|---|---|---|
| £1000 additional payment for hiring apprentices | 16 to 18 (19 to 24 with EHCP or care leavers) | We pay this in two equal instalments, at day 90 and one year after apprenticeship started (or day 242 if apprenticeship under 12 months). |
| £2000 foundation apprenticeship incentive | 16 to 21 (22 to 24 for apprentices with an EHCP, care leavers, or prisoners and prison leavers) | We pay this in three equal instalments, at day 90, day 242 (8 months) and the final payment when an apprentice progresses onto their next apprenticeship. |
| £2000 new SME hiring incentive (from October 2026) *Important: The new £2000 employer incentive is only for non-apprenticeship levy paying SME employers. The will not apply to SME's who pay into the apprenticeship levy. | 16 to 24 | We pay this in two equal instalments at day 90 and day 365 (or day 242 if apprenticeship under 12 months). |
| £3000 new Universal Credit hiring incentive (June 2026) | 18 to 24, if apprentice has been on universal credit for over 6 months | We pay this in two instalments of roughly equal amounts at month 1 and month 3 (to be confirmed) |
The Universal Credit hiring incentive is paid directly to employers by the Department for Work and Pensions. For the other incentives and payments above, the apprenticeship training provider claims them on behalf of the employer and then passes them on..