Government Incentives

The Government is keen to help businesses grow through apprenticeships, and there are currently different financial supports and incentives available that employers may be eligible for.

All incentives listed below are 'stackable', meaning you can claim all incentives you are eligible for.

Download this useful Apprenticeship Financial Support Matrix (PDF, 560 KB) to help you identify which options may be suitable for your business, based on the size of your business (levy paying or non-levy paying) and the age of the apprentice.

If you would like to discuss these options - please feel free to contact the friendly team at Apprenticeships Norfolk!

National Insurance Contributions (NICs) for under 25s

You may not need to pay class 1 National Insurance Contributions for an apprentice, if the apprentice is:

Under 25 years old.
On an approved UK government apprenticeship standard (these can differ depending on UK country).
Earns less than £967 a week (£50,270 a year).

For more information, read the government guidance on paying employer National Insurance Contributions for apprentices under 25.

£1,000 ~ Age payment

Eligibility: Any employer when hiring an apprentice aged 16 to 18. Eligibility is extended to ages 16-24 if the apprentice has an education, health and care plan (EHCP) or has previously been in care.
How it's paid: You will recieve £500 after the after the apprentice completes 90 days of their apprenticeship programme and £500 after the apprentice completes 365 days.
How to claim: This incentive is automatically available. It must be claimed by your training provider who will pass the funds onto the employer.

For more details on the apprenticeship age payment, check out the government webpage.

£2,000 ~ Apprenticeship Hiring Incentive (from 01.10.2026)

Eligibility: Employers that do not pay into the Growth & Skills levy employing a new apprentice ages 16-24. To qualify, the apprentice must start on their apprenticeship training programme within 3 months of staring employment i.e. the earliest possible claim for this incentive is for apprentices starting on their training programme on 1st October 2026, who started their employment with you on, or after 1st July 2026.
How it's paid: You will recieve £1,000 after the after the apprentice completes 90 days of their apprenticeship programme and £1,000 after the apprentice completes 365 days.
How to claim: This incentive is automatically available. It must be claimed by your training provider who will pass the funds onto the employer.

For more details on the Apprenticeship Hiring Incentive, check out the government funding rules.

£2,000 ~ Foundation Apprenticeship Incentive

Eligibility: Any employer taking on an apprentice aged 16-21 to complete a Foundation apprenticeship. Eligibility is extended to ages 16-24 if the apprentice has an education, health and care plan (EHCP), has previously been in care or is a prisoner or prison leaver.
How it's paid: You will recieve three equal instalments after the apprentice has completed 90 days (3 months), 242 days (8 months) with the final payment made when the apprentice progresses to their next apprenticeship.
How to claim: This incentive is automatically available. It must be claimed by your training provider who will pass the funds onto the employer.

For more details on the Foundation Apprenticeship age payment, check out the government webpage.

£3,000 ~ Youth Jobs Grant

Please note this is a general jobs grant that can also apply to apprenticeships. The specifics are very different to the apprenticeship grants above and we strongly reccomend reading the government guidance on the Youth Jobs Grant here..

Eligibility: Any employer when hiring an apprentice aged 18 to 24 who has been claiming Universal Credit for 6-18 months.
How it's paid: You will recieve two payments. At 6 weeks, you will recieve £1,800 if the apprentice has worked at least 50 hours. At 18 weeks, £1,200 will be paid if the apprentice has worked at least 300 hours.
How to claim: Paid directly to the employer by the Department of Work and Pensions (DWP).

N.B. To qualify for this grant, employers must first submit a vacancy to DWP. The local Job Centre will shortlist suitable candidates for employers, who then undertake their chosen recruitment process. This grant cannot be claimed if undertake your own recruitment and subsequently hire an eligible canidate.

For more details on the Youth Jobs Grant, please read the government webpage.