From 1 October 2026, exciting new funding is available to help employers recruit young talent through apprenticeships.
The government has introduced a new apprenticeship hiring payment of up to £2,000 for eligible non-levy paying employers who recruit apprentices aged 16 to 24 as new employees. This additional support is designed to encourage businesses to create opportunities for young people while helping offset recruitment and development costs.
What is the new hiring payment?
Eligible non-levy employers can receive a payment of up to £2,000 when they recruit an apprentice aged between 16 and 24 who:
Starts their apprenticeship on or after 1 October 2026
Has joined the organisation as a new employee within the previous 90 days
The funding is intended to help employers invest in future talent, address skills gaps and grow their workforce through apprenticeships.
Good news: no extra paperwork
One of the most welcome aspects of this initiative is its simplicity.
Employers and training providers do not need to submit any additional applications or claims. Eligibility will be assessed automatically through the apprenticeship service, and payments will be issued to training providers to pass on to eligible employers.
Up to £8,000 of support available
The new £2,000 hiring payment could be just one part of a wider package of support available to employers.
Depending on circumstances and eligibility, businesses recruiting young apprentices may be able to access up to £8,000 in combined hiring payments, grants and incentives, alongside fully funded apprenticeship training and assessment costs.
This creates a significant opportunity for employers looking to bring new talent into their organisation while managing recruitment budgets effectively.
Increased investment in apprenticeship opportunities
Alongside the new employer incentives, the government has announced an additional £100 million investment in Mayoral Strategic Authority Apprenticeship Brokerage Pilots.
These pilots aim to:
Help more young people access local apprenticeship opportunities
Support employers to recruit apprentices more easily
Strengthen local skills pipelines
Connect businesses with emerging talent in their region
The investment demonstrates a continued commitment to expanding apprenticeship opportunities and supporting economic growth through workforce development.
Why now is a great time to recruit an apprentice
Apprenticeships offer employers the opportunity to:
Develop skills tailored to their business needs
Build a pipeline of future talent
Increase productivity and performance
Improve staff retention
Support social mobility and local employment opportunities
With apprenticeship training already fully funded for many smaller employers, the introduction of an additional hiring payment makes apprenticeships an even more attractive recruitment option.
How Linden can help? At Linden, we work closely with employers to identify apprenticeship opportunities, recruit suitable candidates and support successful apprenticeship programmes from enrolment through to completion. If you're considering recruiting an apprentice and would like to understand what funding and support may be available to your organisation, we'd be delighted to help. Get in touch with the Linden team today to explore how apprenticeships can support your business growth while taking advantage of the latest employer incentives.
#TeamLinden | #Apprenticeships | #Coinvestment
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