🎓 £2,000 for small businesses that take on a young apprentice
What is it?
The government has announced a new £2,000 Apprenticeship Hiring Payment for employers in England who don’t pay the apprenticeship levy, which covers most small and medium-sized businesses. It’s part of a wider push for 50,000 more youth apprenticeships and applies to apprentices starting from 1 October 2026.
How it works:
There’s no application. Your training provider identifies eligible apprentices when training starts and passes the money on within 30 working days of receiving it.
It’s paid in two instalments of £1,000: the first after 90 days, the second after one year (or after 242 days for shorter apprenticeships).
You only get each payment if the apprentice is still employed with you when it’s due.
The apprentice must be 16 to 24 when training starts, or 15 if their 16th birthday falls between the last Friday of June and 31 August.
They must have started working for you no more than 90 days before their training began.
You can spend it on any costs linked to employing them, such as equipment, travel or uniform.
The government has also refreshed apprenticeships.gov.uk as a one stop shop for employers, including a calculator to see what funding you could get.
What does it mean for you?
If you’ve been thinking about bringing in a young person, the numbers now look a lot friendlier. For non-levy employers, the government already pays the full cost of training and assessment for apprentices aged 16 to 24, up to the funding band maximum. The £2,000 sits on top of that, and you may be able to claim other support alongside it, such as the £3,000 Youth Jobs Grant for 18 to 24 year olds who’ve been on Universal Credit for six months or more.
A few things to get right:
Timing matters. If someone has worked for you for more than 90 days before training starts, they won’t qualify.
You’ll need an apprenticeship agreement and training plan, pay at least the minimum wage, and give them time off in the working week for training.
The second payment depends on them still being with you, so plan the support they’ll get from day one.
How Lansbury HR can help
We can help you get the people side right from the start: the paperwork, pay, an onboarding plan and support for the managers looking after your apprentice. If you’re weighing up whether an apprentice is right for your business, get in touch for a friendly chat.
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