On 16th March 2026, the Government announced new incentives for employers to hire younger workers and apprentices. We're going to quickly run through 3 essential government updates that are relevant to apprenticeships. 

1. £2,000 Incentive for SMEs Hiring Apprentices


From 1st October 2026, Non-Levy paying employers (typically these are SME employers) will receive £2,000 for each 16–24-year-old apprentice they recruit, as long as they have joined their employer within the past 3 months (i.e., from July 2026).

This is in addition to other incentives to employ younger apprentices, which include:

£1,000 to support your apprentice in the workplace if, at the start of their apprenticeship training, they are one of the following:
 

  • 16 to 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
  • 19 to 24 years old with an education, health and care (EHC) plan
  • 19 to 24 years old and have been in care
  • You can spend it on any costs related to their employment, for example, their salary, travel costs or uniform.

 

In addition, there is no contribution to pay towards the training costs. The Government will fully fund the training for all apprentices under the age of 25. For apprentices over the age of 25 at the start, you will pay 5% of the training cost. 

2. No National Insurance Contributions for Apprentices under 25

Employers will also continue to benefit from the no-employer National Insurance contributions for apprentices under 25.

 

3. Help with other costs

You can claim an additional £1,000 towards other costs if the apprentice is:

16-18 years old

19-24 years old with an EHC (Education, Health and Care) Plan

19-24 years old and have been in care

This is paid in two instalments of £500. First instalment is paid 90 days after the apprenticeship has started and the seond after one year.

 

4. £3,000 Youth Jobs Grant for Employers

Businesses of any size can get £3,000 if the apprentice meets these two conditions:

  • They’re aged 18–24
    They’ve been on Universal Credit and looking for work for at least 6 months

This is paid in two installments. £1,800 paid in month 2 of their employment and £1,200 paid in month 5. Jobs must be at least 25 hours a week and expected to last at least 4 months.

Extra Information About the Government Announcement 

The announcement on 16 March by the Work and Pensions Secretary Pat McFadden also included:

Apprenticeship Units

Apprenticeship units will be available for employees aged 19+ who are already in work, and where the employer wants upskill in specific areas. These are not for employees looking for a career change. The syllabus for apprenticeship units comes from the knowledge and skills from existing apprenticeship occupational standards.

From April 2026, apprenticeship units will be available for delivery in:

  • AI leadership – developing AI strategy
  • Electric vehicle charging point installation and maintenance
  • Electrical fitting and assembly
  • Mechanical fitting and assembly
  • Permanent modular building assembly
  • Solar PV installation and maintenance
  • Welding - mechanised 

‌Further details can be found here on the government website.

Streamlining Apprenticeships

Streamlining 16 apprenticeship Standards will be defunded from August 2026, with no new starts allowed, although apprentices currently on these programmes will be able to complete.

You can see a list of these Standards here.