£2,000 for Small Firms that Take on Young Apprentices

The Department for Work and Pensions announced the new Apprenticeship Hiring Payment on 1 October, with backing from the Federation of Small Businesses. 

Who qualifies 

• Employers that don’t pay the apprenticeship levy 
• Apprentices aged 16 to 24 at the start of training (or 15, if they turn 16 between the last Friday of June and 31 August) 
• Apprentices who started with the employer no more than 90 days before their training began 

How it works 

There’s no application. Eligible apprentices are identified when training starts, and the money goes to the training provider, who passes it on within 30 working days of receiving it. 

It’s paid in two £1,000 instalments: the first after 90 days, the second after one year (242 days for foundation apprenticeships). The apprentice must still be employed at each payment date. Employers can spend it on any employment-related cost, such as equipment, travel or uniform. 

Stackable support 

The FSB points out that the payment can be combined with other support worth up to £6,000, giving a potential package of up to £8,000 per apprentice. 

Keep an eye out for a refreshed apprenticeships.gov.uk, which will soon have a funding calculator and step-by-step guidance for employers and applicants 

For smaller contractors weighing up their first apprentice, or an additional one, this offsets some of the early costs. Check your levy status, talk to your training provider early, and make sure the hiring timeline fits the 90-day rule. 

If you have questions, or wish to take on additional staff, contact [email protected]