S&A Academy Reports New £2,000 Government Incentive for SMEs Hiring Apprentices

From October 2026, employers can access up to £2,000 from the government for hiring a young apprentice. At a time when wages and employment costs are rising, this new incentive gives employers, especially SMEs, a practical way to reduce costs while continuing to invest in talent. S&A Academy helps employers navigate this funding and maximise the value of their apprenticeship investment.

New £2,000 government incentive for non-levy employers

Non-levy paying employers can receive up to £2,000 from the government for hiring a 16- to 24-year-old apprentice as a new employee.

This applies to apprentices starting from October 2026 and is designed to:

• Support the cost of hiring young people
• Increase apprenticeship opportunities
• Help employers build future-ready workforces

Payment structure:

• 50 percent after 90 days
• 50 percent after 12 months or earlier for shorter programmes

Payments are claimed via the training provider and paid to the employer once eligibility is confirmed.

Government funding goes further than you think

Employers can access a wide range of government support alongside this incentive:

Core training funding

• 95 percent funded training for non-levy employers
• In some cases, 100 percent fully funded
• Government pays the training provider directly

Additional government incentives

• £1,000 for hiring apprentices aged 16 to 18 or eligible 19- to 24-year-olds
• £2,000 foundation apprenticeship incentive
• £3,000 Universal Credit hiring incentive for eligible candidates
• £3,000 bursary for care leavers

Many of these can be combined, helping to significantly reduce overall costs.

Lower employment costs from day one

Hiring young apprentices can also reduce ongoing employment costs:

• 0 percent employer National Insurance contributions for apprentices under 25
• Government support towards training and development
• Funding structured to support retention

A long-term hiring strategy

This is not just about accessing funding. It is about building a stronger workforce.

With S&A Academy, employers can:

• Recruit and train talent aligned to their business needs
• Develop long-term skills pipelines
• Reduce reliance on external recruitment
• Improve retention through structured development

S&A Academy supports employers through the full process, helping you make the most of the funding available.

Why employers are acting now

The government aims to create 50,000 more apprenticeship starts for young people.

For employers, this means greater access to funding, increased support, and more opportunities to hire and develop talent.

Start hiring with support

With up to 95 to 100 percent funded training and up to £2,000 in government incentives, apprenticeships remain a cost-effective way to grow your workforce.

S&A Academy can support you in accessing funding, recruiting the right talent, and building the skills your organisation needs for the future.

Read more news about the S&A Academy here.

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