Government incentives

The Government is keen to help businesses grow through apprenticeships, and there are currently a range of different grants and incentives available to employers that you may be eligible for.

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

National Insurance contributions 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 or framework (these can differ depending on UK country).
Earns less than £967 a week (£50,270 a year).

For more information check out 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.

Check out the Age payment government webpage for more information.

£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.

Check out the government webpage on Foundation apprenticeships for more information.

£3,000 Universal Credit hiring incentive (Available from June 2026)

Eligibility: Any employer when hiring an apprentice aged 18 to 24 who has been claiming Universal Credit for a minimum of the past 6 months.
How it's paid: Still awaiting formal confirmation, however, it is expected to be paid in two £1,500 payments after the apprentice has completed 30 days (1 month) and 90 days (3 months) on programme.
How to claim: Paid directly to the employer by the Department of Work and Pensions (DWP).

£2,000 SME hiring incentive (Available from October 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.