Smaller businesses that back the next generation will receive £2,000 for each new young apprentice they take on.
The new government scheme has been designed to help non-levy-paying employers, typically SMEs, cover the costs of taking on a young person as an apprentice and build the talent pipeline they need to thrive and grow.
How the new apprentice payment for SMEs works
To keep it as simple as possible for smaller businesses, they don’t need to apply for the payment; it will instead be paid through their apprenticeship training provider. It will be paid in two instalments: £1,000 after the apprentice completes their first 90 days, and the second £1,000 after the one-year mark, or after 242 days for shorter apprenticeships and foundation apprenticeships.
A non-levy-paying employer can get £2,000 to support their apprentice in the workplace if, at the start of their apprenticeship training, the apprentice is 16 to 24 years old, or 15 years old if their 16th birthday falls between the last Friday of June and 31 August. The apprentice must also have started work with the employer no more than 90 days before beginning apprenticeship training.
The employer can spend it on any costs related to their employment, for example, their work equipment or travel costs. The employer will only get paid if the apprentice is still employed by them when each payment is due.
A new and improved apprenticeships.gov.uk will be a one-stop shop for businesses seeking clear, practical guidance on hiring apprentices, from eligibility criteria to funding and support. Employers will be able to calculate how much funding support they are eligible for and hear from real businesses on their apprenticeship experiences.
AMPS welcomes the new scheme
More support for apprenticeships is one of our asks for government ahead of the Autumn Budget on 28 October. Our members need as much funding and guidance as possible to create more opportunities for young people, and this payment helps our smaller members take that first step.
Read our full priorities in Autumn Budget 2026: Our priorities for reindustrialising Britain.
