As of March/April 2026, the UK government is introducing a £3,000 “Youth Jobs Grant” for employers hiring 18–24 year olds on Universal Credit. Additionally, from October 1, 2026, non-levy employers can receive a £2,000 grant for hiring apprentices aged 16–24. Meanwhile, funding is being shifted away from 16 specific management-level apprenticeships to prioritise entry-level roles.
Key Incentive Updates (2026)
- New Youth Jobs Grant (£3,000): Targeting employers who hire young people (18–24) who have been on Universal Credit for six months.
- Hiring Grant (£2,000): From 1 October 2026, non-levy paying employers can claim £2,000 for hiring new apprentices aged 16–24, paid in two installments after 90 days and, presumably, at a later milestone.
- Existing Incentive (£1,000): A £1,000 payment remains available for employers hiring apprentices aged 16-18, or 19–25 with an Education, Health and Care Plan (EHCP) or who have been in local authority care.
Policy and Funding Shifts
- Defunding Management Roles: The government is removing funding for 16 apprenticeships, including leadership and management roles, to focus resources on lower-level apprenticeships.
- Levy Changes (August 2026): If levy-paying employers exceed their funds, they will pay 25% of additional costs, with the government covering 75%.
- Recruitment Freedom: Small employers (non-levy) are no longer capped at 10 new starts and can hire as many apprentices as needed.
How to Access Funding
- Employers must create an Apprenticeship Service Account to manage funding and reserve funds, especially for non-levy payers.
- Non-levy employers can reserve funds up to three months before the apprentice start date.
As of 1 April 2026, the National Minimum Wage (NMW) for apprentices is £8.00 per hour, applicable to those aged 16–18 and those aged 19+ in their first year. Apprentices aged 19+ who have completed their first year are entitled to the higher NMW rate for their age group. Many employers pay above this minimum.
Apprentice Pay Rates (From 1 April 2026)
- Apprentice Rate: £8.00 per hour (Under 18, 16-18, or 19+ in first year).
- Aged 18 to 20: £10.85 per hour.
- Aged 21 or over: £12.71 per hour (National Living Wage)