The Department for Work and Pensions (DWP) has announced a £2,000 incentive for small businesses that employ young apprentices. This payment is aimed at encouraging smaller enterprises to invest in the next generation by rewarding them for each new young apprentice they onboard.
In addition, the DWP has updated the apprenticeships.gov.uk website to simplify the process and provide businesses with easier access to support and information on hiring apprentices. This enhancement comes as part of a broader initiative to create 50,000 additional youth apprenticeships across the nation, fostering greater opportunities for young people.
To streamline the process, small businesses do not need to apply for the payment directly. Instead, the incentive is paid through the apprenticeship training provider. Employers will receive the funds in two instalments of £1,000 each: the first after 90 days of the apprentice starting their training, and the second either one year after the apprenticeship begins or after 242 days in the case of a foundation apprenticeship.
READ MORE: New Mum Praises OK! Beauty Box Advent Calendar as Ideal Self-Care Choice
Work and Pensions Secretary Pat McFadden emphasised the importance of supporting small and medium-sized enterprises in providing young people with opportunities to learn and earn. He stated, “That’s why we’re giving every small business hiring a young apprentice £2,000 – on top of the countless other benefits that young person will bring – and putting all the information a business needs in one place online. We promised 50,000 more youth apprenticeships, and we’re delivering on that promise, one hire at a time.”
Business Secretary Jonathan Reynolds highlighted the mutual benefits of apprenticeships for businesses and young workers, saying, “This apprenticeship support is a fantastic opportunity for small businesses to get access to exceptional talent, and in return, gain the fresh energy, ideas and loyalty that come from investing in someone’s future. By putting the support and guidance they need all in one place, we’re making it easier than ever for small businesses to say ‘you’re hired’ to an apprentice.”
Employers may use the payment for any expenses connected to the employment of the apprentice, such as work equipment, travel costs, or uniforms.
The scheme targets two groups: apprentices aged 16 to 24, and those aged 15 whose 16th birthday falls between the last Friday of June and 31 August. Additionally, apprentices must commence their job with the employer within 90 days before starting their apprenticeship training to qualify for the payments.