Small employers in England can now receive a £2,000 payment when they take on a new apprentice aged 16 to 24, under a hiring incentive that came into force on 1 October 2026.

The apprenticeship hiring payment is aimed at employers that do not pay the apprenticeship levy — typically small and medium-sized firms. The Department for Education confirmed in its 7 October update for further education providers that the payment is now available and asked providers to raise awareness with the employers they work with.

Who qualifies

To qualify, the apprentice must be aged 16 to 24 when their training begins and must have started their apprenticeship on or after 1 October 2026. They must also have begun employment with the employer within the previous 90 days, so the payment is for genuinely new recruits rather than existing staff moved onto an apprenticeship.

The £2,000 is paid in two equal instalments: the first after day 90 of the apprenticeship and the second after day 365, or after day 242 for apprenticeships shorter than 12 months. The apprentice must still be employed at each payment point.

How employers receive it

Employers do not apply for the payment directly. Eligible apprentices are identified when their training starts, and the apprenticeship training provider claims the money and passes it on to the employer. The funding can help with employment-related costs such as equipment, travel or uniforms.

The hiring payment sits alongside other Apprenticeship Service support, including a £1,000 additional payment for apprentices aged 16 to 18 and a £3,000 Youth Jobs Grant for apprentices aged 18 to 24 who have been unemployed and on Universal Credit for six months or more.

Sources: GOV.UK, DfE Update 7 October 2026; Apprenticeship Service support