£2,000 boost for small businesses who take on young apprentices
The UK government will pay small businesses £2,000 for each young apprentice hired, with payments processed automatically via training providers to simplify access.
The UK government will provide £2,000 to small businesses for every new young apprentice they employ, aiming to expand opportunities for young people in skilled careers. The payment is designed to support non-levy paying employers, typically small and medium-sized enterprises, by covering costs associated with hiring and training apprentices. Payments will be made directly to employers through their apprenticeship training provider without requiring an application process. This initiative is part of a broader effort to create 50,000 additional youth apprenticeships across the country.
To streamline the process for businesses, the government has refreshed the apprenticeships.gov.uk website, offering a centralised resource for guidance on hiring apprentices. The site includes tools to calculate funding eligibility, real employer testimonials, and a step-by-step guide for young people to apply for apprenticeships. The refreshed platform aims to simplify access to information on eligibility criteria, funding, and support available. This follows the government’s commitment to improving the apprenticeship system for both employers and apprentices.
The £2,000 payment is paid in two instalments: £1,000 after the apprentice completes 90 days and a further £1,000 after one year or 242 days for shorter or foundation apprenticeships. This support is in addition to other funding opportunities, potentially totalling up to £8,000 per apprentice when combined with other incentives. The Federation of Small Businesses has welcomed the measure, highlighting its role in addressing the financial barriers small firms face when hiring apprentices.
The government is also expanding the Apprenticeship Brokerage pilot to all mayoral areas in England, backed by £100 million over two years. This expansion aims to better align local skills needs with apprenticeship opportunities, with mayors playing a key role in convening employers and supporting community-based career pathways. The initiative targets young people not in education, employment, or training, offering them structured pathways into sustainable careers.