Employers who take on an apprentice aged 18 to 24 who has been on Universal Credit for more than six months can claim a new £3,000 Youth Jobs Grant, the Government has confirmed. The payment is part of a package of support designed to encourage firms, particularly smaller ones, to give young people their first step into work.

The confirmation came in a written parliamentary answer from the Department for Work and Pensions on 6 November 2026, in response to a question about how many eligible employers had not recruited an apprentice in each of the last five academic years. The department said it does not collect data on the number of eligible businesses that do not recruit apprentices, but set out the measures now in place to support employers that do.

What employers can claim

Alongside the Youth Jobs Grant, the Government has introduced a new apprenticeship hiring payment of £2,000 for non-levy paying employers, typically small and medium-sized businesses, that recruit a 16 to 24-year-old as a new employee. Apprenticeship training itself is now fully funded by the Government for all eligible under-25s at employers of all sizes, with funding prioritised towards young people.

Where employers are eligible, the payments can be combined with existing support, including a £1,000 payment for taking on a 16 to 18-year-old apprentice and a £2,000 payment for foundation apprentices. Employers also do not have to pay anything towards National Insurance for apprentices aged up to 25 when the employee earns below £50,270 a year.

Support for small businesses

The Government also funds the Apprenticeship Ambassador Network, which brings together around 2,000 employers and apprentices who volunteer to promote the benefits of apprenticeships. The network operates across England through nine regional networks, offering buddying and mentoring support to small businesses to help them recruit and retain apprentices.

The measures sit against a difficult backdrop for young jobseekers. The British Retail Consortium reported this month that youth unemployment has risen to 15.9 per cent, with 730,000 under-24s unable to find work, and ministers have repeatedly said that early-career opportunities need to reach young people who might otherwise be overlooked.

What it means for employers

For a small employer, the combined payments can cover a meaningful share of the cost of taking on a young apprentice, while the fully funded training removes the course fees for eligible under-25s. The Youth Jobs Grant is aimed specifically at young people who have spent more than six months on Universal Credit, a group that can find it hardest to get a first job.

Employers considering an apprentice should check the eligibility rules for each payment before recruiting, as the grants apply to different age groups and circumstances. Full details are set out in the parliamentary answer, and apprenticeship vacancies and guidance for employers are published on GOV.UK.