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Employing an apprentice

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Get extra payments for employing an apprentice

You might be able to get extra payments towards the costs related to your apprentice’s employment, depending on their age and circumstances.

You may be eligible for more than one payment. You can use the payments for things like work equipment, travel costs or uniform.

You’ll only get paid if the apprentice is still employed by you and doing their apprenticeship when each payment is due.

The government will check if you’re eligible for the following payments:

  • up to £2,000 for recruiting a new apprentice
  • up to £2,000 if you provide a foundation apprenticeship
  • £1,000 to support your apprentice in the workplace

You do not need to apply for these.

If you’re eligible, the government will pay the money to the training provider. They must pay you within 30 working days of receiving it.

You may also be eligible for a £3,000 Youth Jobs Grant if you recruit an apprentice who is out of work. You’ll need to apply for this yourself.

Recruiting a new apprentice

If you do not pay the apprenticeship levy, you may be eligible for an apprenticeship hiring payment of up to £2,000 when recruiting a new apprentice.

You’re eligible if your apprentice is one of the following at the start of their apprenticeship training:

  • 16 to 24 years old
  • 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August

You will not be eligible if your apprentice started working for you more than 90 days before their apprenticeship training starts.

Check the funding rules to find out if you’re eligible.

How and when you’ll be paid

The government will confirm your apprentice’s eligibility and pay the training provider. The training provider will then pay you in 2 instalments of £1,000.

You’ll get:

  • the first payment of £1,000 - 90 days after the apprenticeship starts
  • the second payment of £1,000 - one year after the apprenticeship starts

If you’re providing a foundation apprenticeship

You may be able to get an employer incentive of up to £2,000. This is to support your apprentice doing a foundation apprenticeship if they’re one of the following:

  • 16 to 21 years old
  • 22 to 24 years old with an education, health and care (EHC) plan
  • 22 to 24 years old and have been in care
  • 22 to 24 years old and are in prison or leaving prison

Find a foundation apprenticeship on the Skills England website.

How and when you’ll be paid

The government will confirm your apprentice’s eligibility and pay the training provider. The training provider will then pay you in 3 instalments.

You’ll get:

  • the first payment of £667 - 90 days after the apprenticeship starts
  • the second payment of £667 - 242 days after the apprenticeship starts
  • the third payment of £666 - 90 days after the apprentice moves on to their next apprenticeship

If an apprentice has an education, health and care (EHC) plan or has been in care, the training provider must get the apprentice’s agreement before sharing this information with you. The training provider will also need this agreement before making any payments to you.

Support for apprentices in the workplace

You can get £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
  • 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 EHC plan
  • 19 to 24 years old and have been in care

How and when you’ll be paid

The government will confirm your apprentice’s eligibility and pay the training provider. The training provider will then pay you in 2 instalments of £500.

You’ll get:

  • the first payment of £500 - 90 days after the apprenticeship starts
  • the second payment of £500 - one year after the apprenticeship starts

If an apprentice has an EHC plan or has been in care, the training provider must get the apprentice’s agreement before sharing this information with you. The training provider will also need this agreement before making any payments to you.

If you recruit an apprentice who is out of work

You may be eligible for a £3,000 Youth Jobs Grant if you recruit an apprentice who is out of work.

The apprentice must be:

  • aged 18 to 24
  • out of work and have been claiming Universal Credit for at least 6 months
  • recruited to a job registered with the Youth Jobs Grant scheme
  • paid at National Minimum Wage or National Living Wage

Your business must be:

  • operating in Great Britain (England, Scotland and Wales)
  • registered with HM Revenue and Customs (HMRC)
  • actively trading, with a minimum trading history of 6 months

You must apply for the Youth Jobs Grant yourself. The training provider cannot apply on your behalf.

How and when you’ll be paid

The government will pay you once it has confirmed that the employment and earnings meet the grant requirements. The £3,000 grant is paid in 2 instalments.

You’ll get:

  • the first payment of £1,800 - after 6 weeks
  • the second payment of £1,200 - after 18 weeks
View a printable version of the whole guide

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