Employers may be eligible for a government-funded £1,000
incentive payment when they employ an apprentice who meets specific
criteria. These payments are designed to support the recruitment and retention
of younger apprentices or those with additional needs.
Eligibility Criteria
You may be eligible for the £1,000 payment if, at the start
of their apprenticeship, the apprentice is:
- Aged
16 to 18, or
- Aged
19 to 24 and either:
- Has
an Education, Health and Care (EHC) plan, or
- Has
been in the care of their local authority
This incentive applies to both levy-paying and non-levy
employers.
Payment Schedule
The £1,000 incentive is paid in two instalments:
- £500
after the apprentice completes 90 days on programme
- £500
after the apprentice completes 365 days
The apprentice must still be employed by you at the time
each payment milestone is reached.
How to Claim
- Your training provider will claim the incentive on your behalf via the Apprenticeship Service.
- Payment relies on you having provided your bank details during the online employer application form process.
- If bank details have not been submitted, we will need to contact you to collect them, which may delay the payment being passed on.
- Once the provider receives the funds, they are required to transfer the full amount to you within 30 working days, provided bank details are already in place.
Use of Funds
The payment can be used to help cover the additional costs
of employing and supporting an eligible apprentice. This may include:
- Salaries
or associated wage costs
- Travel
expenses
- Training
materials, uniforms, or equipment
- Mentoring
or pastoral support
There are no restrictions on how you allocate the incentive,
provided it supports the apprentice’s employment or training experience.
Note: These incentive payments are separate from your
regular co-investment contributions or levy funding. For information on how
apprenticeships are invoiced, please see our Invoicing Process and Timeline forEmployers guidance.
