Small and medium-sized businesses in England can receive a £2,000 incentive for every new apprentice aged 16 to 24 they hire. The payments went live on 1 October 2026.
The incentive is aimed at non-levy paying employers, which are typically businesses with an annual pay bill below the Apprenticeship Levy threshold.
How the payment works
Employers do not need to apply for the payment; it is automatically identified and passed to them via their apprenticeship training provider.
The £2,000 incentive is delivered in two instalments:
• The first £1,000 is paid after the apprentice completes 90 days.
• The final £1,000 is paid after one year. For those on foundation apprenticeships, this second payment is triggered after 242 days.
To qualify, the apprentice must have started employment with the business within the previous three months of their training start date.
Total support “stacking”
The incentive scheme can be stacked with other support, potentially creating a total package worth up to £8,000 per apprentice.
A refreshed apprenticeships website has launched to provide a “one-stop shop” for guidance on hiring and funding.
This incentive scheme applies to businesses operating within England.
