New £2,000 Apprenticeship Hiring Payment: What Employers Need to Know

From 1 October 2026, eligible non-levy employers in England can receive a £2,000 hiring payment when they recruit a new apprentice aged 16 to 24. Alongside fully funded apprenticeship training for eligible young apprentices and potential National Insurance savings, this makes autumn 2026 an especially cost-effective time for smaller employers to grow their workforce.

For businesses that have considered hiring an apprentice but have been concerned about recruitment or training costs, the new payment removes another financial barrier. However, employers must meet specific conditions, so it is important to understand the rules before setting an employment and apprenticeship start date.

What is the new £2,000 apprenticeship hiring payment?

The £2,000 apprenticeship hiring payment is a government payment for employers that do not pay the apprenticeship levy and recruit an eligible new apprentice. It applies to apprentices whose practical training period starts on or after 1 October 2026.

Unlike apprenticeship training funding, which is paid to the training provider, the hiring payment is passed to the employer. It can therefore help with the wider costs of bringing a new member of staff into the business, including equipment, induction, supervision and workplace support.

Who is eligible for the £2,000 payment?

Under the 2026 to 2027 apprenticeship funding rules, an employer must meet all the main eligibility conditions.

Employers must also meet the wider requirements for hiring an apprentice in England, including providing a genuine job, employment contract and suitable workplace support. The employer must:

• be a non-levy employer, meaning it does not pay the apprenticeship levy

• recruit an apprentice who is aged 16 to 24 when their apprenticeship training starts

• have an apprenticeship agreement with a practical period start date on or after 1 October 2026

• have employed the apprentice for no more than 90 days before the practical period starts

• include the apprentice in the PAYE scheme connected to the employer’s apprenticeship service account

• keep the apprentice employed and actively undertaking the apprenticeship when each payment becomes due

There is a limited transitional exception for apprentices whose employment began on 1 or 2 July 2026, provided their apprenticeship training starts by 1 October 2026.

What does non-levy employer mean?

The apprenticeship levy is generally paid by employers with an annual UK pay bill of more than £3 million. Most smaller and medium-sized businesses do not pay it and are described as non-levy employers.

A non-levy employer normally reserves apprenticeship funding through its apprenticeship service account. Receiving a transfer of levy funds from another organisation does not automatically prevent an otherwise eligible non-levy employer from receiving the new hiring payment.

When will employers receive the £2,000?

The payment is made in two equal instalments through the apprenticeship training provider:

• £1,000 after the apprentice has completed 90 days of their apprenticeship

• £1,000 after the apprentice has completed 365 days of their apprenticeship

The apprentice must still be employed by the organisation and actively undertaking their apprenticeship when each payment becomes due. The training provider must pass each instalment to the employer within 30 working days of receiving it from the government.

Is apprenticeship training fully funded for under-25s?

For apprenticeship starts from 1 August 2026, the government funds 100% of the training and assessment cost, up to the funding band maximum, for eligible apprentices aged 16 to 24 working for non-levy employers.

This means an eligible non-levy employer can recruit a young apprentice without paying the usual 5% contribution towards the agreed training and assessment price. The apprentice must still be employed in a genuine role, paid at least the applicable wage and given the time and workplace support needed to complete their training.

For apprentices aged 25 and over, non-levy employers normally pay 5% of the training and assessment cost, with the government paying the remaining 95%, up to the funding band maximum.

You can read our complete guide to apprenticeship funding and the Growth and Skills Levy for further information about employer contributions, levy funding and government support.

Could an employer receive additional financial support?

Some employers may qualify for other support as well as the £2,000 apprenticeship hiring payment. Each payment has separate eligibility rules and should be checked individually.

The existing £1,000 employer payment

Employers can receive an additional £1,000 to support an apprentice in the workplace if, at the start of their apprenticeship training, the apprentice is:

• aged 16 to 18

• aged 19 to 24 and has an education, health and care plan

• aged 19 to 24 and has been in the care of their local authority

This payment is made in two £500 instalments. Where all relevant conditions are met, an employer recruiting a 16 to 18-year-old may therefore be eligible for the new £2,000 hiring payment and the existing £1,000 support payment.

The separate £3,000 Youth Jobs Grant

The Youth Jobs Grant is not a general apprenticeship incentive. It is a separate scheme for employers recruiting an eligible person aged 18 to 24 who has been receiving Universal Credit and looking for work for six months or more.

The job must meet the scheme conditions, including being for at least 25 hours per week and expected to last for at least four months. Employers should confirm eligibility through the official Youth Jobs Grant process rather than assume that every apprentice aged 18 to 24 qualifies.

Employer National Insurance relief

Employers do not normally pay Class 1 employer National Insurance contributions on the earnings of qualifying apprentices under 25, up to the Apprentice Upper Secondary Threshold. For the 2026 to 2027 tax year, current government guidance states this threshold as £50,270.

Payroll teams should apply the correct National Insurance category and check the current HMRC rules for the individual apprentice.

How much could hiring an apprentice save?

The precise value depends on the apprentice, their wage, the programme and the employer’s circumstances. For an eligible non-levy employer recruiting an apprentice aged 16 to 24, the available support could include:

• 100% government funding for apprenticeship training and assessment, up to the funding band maximum

• a £2,000 apprenticeship hiring payment

• a further £1,000 payment where the apprentice meets the additional age or eligibility conditions

• employer National Insurance relief on qualifying earnings

• recruitment advertising, candidate screening and CV shortlisting paid for by Solveway

These savings sit alongside the longer-term benefit of developing an employee around the systems, responsibilities and skills the business genuinely needs.

Why apprenticeships are valuable beyond the incentive

The government payment can make recruitment more affordable, but the strongest reason to hire an apprentice is the opportunity to build capability within the organisation. Apprentices combine a paid job with structured training, applying new knowledge directly in the workplace.

Employers can use apprenticeships to bring new talent into accountancy, IT, data and artificial intelligence roles, or to develop an existing employee whose role has expanded. A well-matched apprentice can become a long-term member of the team while building recognised, role-specific skills.

How Solveway supports employers

Solveway Apprenticeships supports employers across England with recruitment, onboarding, training and ongoing progress reviews. Our employer support includes:

• help defining the role and selecting the right apprenticeship

• vacancy advertising paid for by Solveway

• candidate screening and interview support

• a shortlist of suitable CVs

• guidance on apprenticeship funding and the Digital Apprenticeship Service

• live, tutor-led training and ongoing work coach support

• regular communication about the apprentice’s progress

Solveway delivers employer-led apprenticeships in Accountancy, IT, Data and Artificial Intelligence. Training is designed to connect learning with the apprentice’s day-to-day responsibilities and the needs of the employer.

What should employers do next?

Employers considering a new apprentice should plan the employment and apprenticeship start dates carefully. The apprentice must not have been employed by the business for more than 90 days before their practical training period starts if the employer wishes to qualify for the £2,000 payment.

A useful next-step checklist is:

1. identify the role and skills the business needs

2. speak to Solveway before confirming the apprenticeship start date

3. check that the employer and apprentice meet the funding conditions

4. set up or update the employer’s apprenticeship service account

5. make sure the correct PAYE scheme is connected to the account

6. allow Solveway to advertise the vacancy and screen applicants

Hire an apprentice with Solveway

If you are planning to recruit a new apprentice aged 16 to 24, the funding changes from October 2026 could significantly reduce the cost of developing new talent.

Solveway can help you check the likely funding position, choose the right apprenticeship and recruit suitable candidates. Our team will advertise your vacancy, screen applicants and provide a shortlist of CVs, with the recruitment costs paid by Solveway.

Explore our apprenticeship programmes: and Visit our apprenticeship employer FAQs for answers about apprentice wages, training time, funding, eligibility and employer responsibilities.

Contact us: info@solveway.co.uk | 01438 567565