UK Apprenticeships and Employer Funding | October 2026
UK £2,000 Apprentice Hiring Payment: Employer Eligibility and Rules
Eligible employers that do not pay the apprenticeship levy can now receive a £2,000 hiring payment when they recruit a new apprentice aged 16 to 24 in England. The scheme applies to eligible apprenticeships starting on or after 1 October 2026 and is designed to help employers meet some of the costs associated with bringing young people into work.
The payment is separate from government funding for apprenticeship training. It is paid through the apprenticeship training provider in two instalments, subject to the eligibility rules and the apprentice remaining employed at the relevant payment dates. Employers should understand the age requirements, employment start date, apprenticeship start date and evidence requirements before expecting to receive the money.
Key details at a glance
- Payment amount: Up to £2,000 per eligible apprentice
- Effective start date: Apprenticeships starting on or after 1 October 2026
- Eligible employer: An employer that does not pay the apprenticeship levy
- Eligible age: 16 to 24 at the start of apprenticeship training, including the specified age 15 exception
- Employment condition: The apprentice must have started working for the employer within the previous 90 days before apprenticeship training starts
- First instalment: £1,000 after 90 days of the apprenticeship
- Second instalment: £1,000 after one year, or at day 242 for an apprenticeship lasting less than 12 months
- How to receive it: The training provider claims the payment and passes it to the employer
- Geographic scope: Apprenticeship funding rules covered here apply to England
What is the £2,000 apprenticeship hiring payment?
The apprenticeship hiring payment is financial support for eligible non-levy employers recruiting new apprentices. It is intended to help with employment-related expenses, such as work equipment, travel costs, uniforms and other costs connected with employing an apprentice.
The scheme is distinct from the money used to pay for apprenticeship training and assessment. An employer may qualify for government training funding as well as the hiring payment, provided the relevant conditions for each type of support are met.
The payment is not a general grant for every business that already employs an apprentice. It is linked to a qualifying new apprenticeship start, the age of the apprentice, the employer levy status and the timing of the employment relationship.
Who can qualify for the £2,000 payment?
The main hiring payment is for employers that do not pay the apprenticeship levy. Eligibility is assessed against the circumstances of the apprentice and employer at the start of apprenticeship training.
| Eligibility condition | What it means |
|---|---|
| Employer levy status | The employer must not pay the apprenticeship levy. |
| Apprentice age | The apprentice must be aged 16 to 24 at the start of apprenticeship training, subject to the specified age 15 exception. |
| New employee condition | The apprentice must have started employment with the employer within the previous 90 days before training starts. |
| Apprenticeship start date | The eligible apprenticeship must start on or after 1 October 2026. |
| Continued employment | The apprentice must still be employed by the employer when each instalment becomes due. |
| Payment route | The training provider confirms eligibility, claims the funding and passes the payment to the employer. |
The scheme is part of the apprenticeship funding arrangements for England. Employers in Scotland, Wales and Northern Ireland should check the apprenticeship funding programmes that apply in their own nation rather than assume that the English payment rules apply.
Which apprentices are covered by the age rules?
The standard age range for the hiring payment is 16 to 24 at the start of apprenticeship training. Official guidance also recognises a specific exception for a person aged 15 whose 16th birthday falls between the last Friday of June and 31 August.
The relevant age is assessed when apprenticeship training starts, rather than simply when an employer first interviews or offers a job to a candidate. Employers should ask their training provider to confirm the apprentice age and start-date requirements before relying on the payment.
The hiring payment is available for eligible new apprentices, including eligible foundation apprenticeships. Foundation apprenticeships can also have a separate incentive of up to £2,000 for apprentices meeting different age and personal eligibility conditions. Employers should check which payment applies and whether the apprentice qualifies for more than one support scheme.
The 90-day employment rule explained
One of the most important conditions is the timing of the employment relationship. The apprentice must have started working for the employer within the previous 90 days before the apprenticeship training begins.
This means the scheme is designed for new recruitment rather than situations where an employee has already been working for the same employer for a long period before being enrolled on an apprenticeship.
Example of the timing rule
Example A: An eligible young person starts employment on 10 October 2026 and apprenticeship training starts on 1 November 2026. The employment began within the previous 90 days, so the timing condition may be met, subject to all other eligibility requirements.
Example B: A person has been employed by the same business for more than 90 days before apprenticeship training begins. The employer would not meet the stated new employee condition for this hiring payment.
These examples illustrate the timing requirement only. The training provider must confirm eligibility against the applicable funding rules.
Employers should keep a clear record of the employment start date and apprenticeship training start date. If the dates are close to the 90-day limit, confirm the calculation with the training provider before enrolling the apprentice or budgeting for the payment.
How and when will employers receive the £2,000?
The hiring payment is made in two equal instalments of £1,000. It is not normally paid as a single amount at the time of recruitment.
| Payment stage | Amount | When it becomes due |
|---|---|---|
| First instalment | £1,000 | 90 days after the apprenticeship starts |
| Second instalment for an apprenticeship lasting 12 months or longer | £1,000 | One year after the apprenticeship starts |
| Second instalment for an apprenticeship lasting less than 12 months | £1,000 | Day 242 after the apprenticeship starts |
The apprentice must still be employed by the business when each payment is due. If the apprentice leaves before a payment milestone, the employer may not qualify for that instalment.
The training provider is responsible for claiming the payment and passing it on. Providers must pay eligible employers within 30 working days of receiving the money from the government. Employers should ask their provider about the claim status if a payment is overdue.
How can an employer claim the payment?
Employers should work with an approved apprenticeship training provider. The provider checks the apprenticeship information and handles the payment claim under the applicable funding rules. Employers should not assume that a payment will be made solely because they recruit a young person.
- Check levy status. Confirm that the business does not pay the apprenticeship levy.
- Confirm the apprentice age. Check that the apprentice meets the age rules at the start of training, including any applicable age 15 exception.
- Check employment dates. Make sure the employee started working for the business within the previous 90 days before apprenticeship training begins.
- Choose an eligible apprenticeship. Agree the programme and start date with the training provider.
- Provide accurate records. Give the provider the information needed to verify employment, age and apprenticeship details.
- Confirm the claim process. Ask the provider how eligibility will be recorded and when the first instalment is expected.
- Track both payment dates. Check that the apprentice remains employed at the 90-day and later payment milestones.
Official guidance says the payment is claimed by the training provider and passed on to the employer. Employers should therefore coordinate with the provider rather than treat the payment as an automatic transfer from the Department for Work and Pensions or HMRC.
What can the £2,000 be used for?
The hiring payment can be spent on costs related to employing the apprentice. Examples include:
- Work equipment needed for the role
- Uniforms and protective clothing
- Travel costs connected with work
- Other eligible costs associated with employing and supporting the apprentice
The payment is not the same as a wage subsidy with a prescribed salary calculation. Employers should keep reasonable records of how the funds are used and follow any conditions communicated by the training provider or set out in the applicable funding rules.
Can employers receive other apprenticeship payments as well?
Yes. Depending on the circumstances, an employer may be able to combine the £2,000 hiring payment with other support. These payments have different eligibility rules, so employers should not assume that one payment automatically guarantees another.
| Support scheme | Potential amount | Main eligibility point |
|---|---|---|
| Non-levy apprenticeship hiring payment | Up to £2,000 | Eligible non-levy employer hiring a qualifying new apprentice aged 16 to 24 |
| Additional payment for eligible apprentices | £1,000 | Apprentices aged 16 to 18, or eligible apprentices under 25 with an education, health and care plan or care experience |
| Foundation apprenticeship incentive | Up to £2,000 | Eligible foundation apprentices meeting the separate age and personal eligibility conditions |
| Youth Jobs Grant | £3,000 where eligible | Eligible young people aged 18 to 24 who have been unemployed and on Universal Credit for at least six months, subject to the grant rules |
Other support can have separate application processes, payment dates and evidence requirements. Employers should check the official rules for each scheme and confirm with the provider whether payments can be combined for the same apprentice.
Is apprenticeship training also funded by the government?
The £2,000 hiring payment is separate from apprenticeship training funding. Non-levy employers may receive government support for training and assessment costs up to the applicable funding band maximum. For eligible apprentices aged 16 to 24, the government can cover 100% of those costs under the relevant rules.
For other apprentices, non-levy employers generally contribute 5% of eligible training and assessment costs, with the government paying the remainder up to the funding band maximum. The specific arrangements depend on the apprentice, programme and funding rules in force at the start.
Training support is paid to the training provider and should not be confused with the hiring payment passed on to the employer. Employers should agree the training plan and any contribution with the provider before the programme begins.
Common reasons an employer may not qualify
- The employer pays the levy: The £2,000 hiring payment described here is intended for non-levy employers.
- The apprenticeship started before 1 October 2026: The new payment applies to eligible apprenticeship starts on or after the effective date.
- The apprentice is outside the eligible age range: The standard range is 16 to 24, subject to the stated age 15 exception.
- The employment relationship began too early: The employee must have started work within the previous 90 days before training starts.
- The apprentice leaves before a payment milestone: Continued employment is required when each instalment becomes due.
- The claim information is incomplete: The provider needs the necessary information to confirm eligibility and claim the payment.
These are key conditions rather than a complete substitute for the official funding rules. Employers should ask the provider to assess the individual case before including the payment in a recruitment budget.
Frequently asked questions
1. When did the £2,000 apprentice hiring payment start?
The payment applies to eligible apprenticeships starting on or after 1 October 2026.
2. Which employers can receive the payment?
It is for eligible employers that do not pay the apprenticeship levy and recruit a qualifying new apprentice.
3. What age must the apprentice be?
The standard age range is 16 to 24 at the start of apprenticeship training. Official guidance also includes a specified exception for some apprentices aged 15.
4. Does the employee need to be newly recruited?
The apprentice must have started employment with the employer within the previous 90 days before apprenticeship training begins. An employee who has worked for the employer for more than 90 days before training starts does not meet this condition.
5. Is the £2,000 paid in one transfer?
No. It is paid in two instalments of £1,000, subject to the relevant dates and continued employment condition.
6. When is the second instalment paid?
It is due one year after the apprenticeship starts, or on day 242 if the apprenticeship lasts less than 12 months.
7. Does the apprentice need to remain employed?
Yes. The employer only receives an instalment if the apprentice is still employed when that payment is due.
8. How does an employer claim the payment?
The training provider confirms eligibility, claims the payment and passes the money to the employer. Employers should contact their provider to confirm the process and expected dates.
9. Can the money be used for equipment or travel?
Yes. Eligible employment-related costs can include equipment, travel and uniforms, among other costs connected with employing the apprentice.
10. Does the scheme apply across the whole UK?
The funding rules covered in this article apply to England. Employers in Scotland, Wales and Northern Ireland should check the arrangements in their own nation.
Official sources and useful links
Employers should use official government guidance and the apprenticeship funding rules to confirm eligibility before making hiring or budget decisions.
- GOV.UK: Get funding for apprenticeship training — explains hiring payments, training support and payment timing.
- GOV.UK: Apprenticeship funding rules for 2026 to 2027 — official rules for employers and training providers in England.
- GOV.UK: Growth and Skills Levy reforms factsheet — outlines the hiring payment and other apprenticeship support.
- GOV.UK: Apprenticeship funding — details how training funding and additional payments are delivered.
- Apprenticeships.gov.uk: Explore employer funding options — summary of financial support available to employers.
Final takeaway
The £2,000 apprentice hiring payment is available from October 2026 for eligible non-levy employers in England recruiting qualifying new apprentices. The apprentice must meet the age rules, start employment within the previous 90 days before training begins and remain employed when each payment is due. The training provider handles the claim and passes the money to the employer in two £1,000 instalments. Confirm the current funding rules and eligibility with the provider before relying on the payment.
