New Hiring Payment for Apprenticeship Employers

16 July 2026

4 young people working in the plumbing classroom

Non-levy paying employers now have even more reason to invest in the next generation of talent. 

From 1 October 2026, a new government hiring incentive will provide up to £2,000 to eligible non-levy paying employers who recruit a 16–24-year-old apprentice.  

Why hire an apprentice?

Apprentices bring fresh perspectives, enthusiasm, and a willingness to learn, helping businesses build a skilled workforce for the future. Apprenticeships allow employers to develop individuals with the knowledge, skills and behaviours their business needs, creating a pipeline of talent that supports long-term growth and productivity. 

New Hiring Payment 

Eligible non-levy paying employers can receive up to £2,000 when they recruit a 16–24-year-old apprentice as a new employee. 

To qualify, the apprentice must: 

  • Be aged 16-24

  • Have joined your organisation from July 2026 onwards

  • Start their apprenticeship on or after 1st October 2026

The funding is designed to help employers with the costs of recruiting, onboarding and developing young talent. 

Additional Financial Support Available 

The new £2,000 hiring payment can be claimed alongside existing employer incentives, making apprenticeships even more affordable. 

Eligible employers may also benefit from: 

  • No employer National Insurance contributions for apprentices under the age of 25

  • 100% of apprenticeship training costs covered for eligible under 25 apprentices (for non-levy paying employers)

  • £1,000 employer payment for each eligible apprentice under the age of 25

  • £2,000 employer payment for Foundation Apprentices

  • £3,000 bursary available to eligible care leavers under the age of 25 who begin an apprenticeship

In addition, apprenticeship training providers will receive an extra £1,000 to support apprentices aged 16–18, or 19–24 where the apprentice has an Education, Health and Care Plan (EHCP) or is a care leaver. This funding helps provide the additional support needed for young apprentices to thrive throughout their programme. 

Invest in Your Future Workforce 

This enhanced package of financial support makes it an ideal time for smaller employers to recruit and develop young talent. 

By taking on an apprentice, you'll not only benefit from significant financial incentives, but you'll also develop a skilled employee who can grow alongside your business. 

Contact us to find out more about hiring an apprentice and how Leicester College can support you. 

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