Apprenticeship Hiring Payment for Non-levy Employers.

We’re launching a new hiring payment of up to £2,000 for non-levy paying employers (typically SMEs) that take on 16–24-year-old apprentices as new employees.

This will take effect from 1 October 2026, and can be claimed for apprentice starters employed from 1 July 2026 onwards.

Payments will be claimed by the training provider and passed on to the employer. With full details in the apprenticeship funding rules. 

The payment will be paid in two equal instalments at day 90 and day 365 (or day 242 if apprenticeship under 12 months). Earliest payment to the training provider from January 2027.

This forms part of the Government’s wider reforms aimed at reversing the decline in young apprenticeship starts, creating 50,000 more apprenticeships for young people, and expanding the Youth Guarantee.
SMEs employ large numbers of young apprentices and these hiring payments are intended to help meet the additional costs associated with employing young people.

Check your account details

Check your PAYE details in your employer account are accurate and up to date before 1 October 2026. Keeping this information accurate will help avoid delays and support eligibility for the new hiring payment.

Access additional funding support

When recruiting a young person, you could receive up to £8,000 in additional payments, alongside fully funded apprenticeship training and assessment costs (depending on the apprentice's age and the size of your organisation).

More information will be published in due course.
 

Last updated on 14 July 2026 16:07