Non-levy incentive for hiring a young apprentice

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

The policy will take effect for those starting apprenticeships from 1 October 2026, as long as they have joined their employer within the past 3 months (ie from July 2026). 

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 incentives are intended to help meet the additional costs associated with employing young people.

Financial support for hiring a young person

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.

Once available, employers will be able to receive this new incentive in addition to existing payments and incentives. These include:

• No employer National Insurance contributions for apprentices under 25
• 100% training costs covered for eligible under-25s (non-levy)
• £1,000 payment for each eligible apprentice under-25
• £2,000 employer payment for foundation apprentice
• £3,000 bursary available to care leavers under 25 starting an apprenticeship

More information will be published in due course. 

Last updated on 16 March 2026 11:35