£1,000 Additional Payment:
What Employers Need to Know

At A Glance

Who is eligible?

The £1,000 Additional Payment is available to employers recruiting eligible apprentices aged 16 to 18, or apprentices aged 19 to 24 who are either care leavers or have an Education, Health and Care (EHC) plan, subject to the relevant Government eligibility criteria.

How much funding is available?

Eligible employers can receive an additional £1,000 payment for each qualifying apprentice. This support sits alongside apprenticeship training funding and other Government incentives that employers may be able to access and stack where the relevant eligibility criteria are met. This can include fully funded apprenticeship training for eligible apprentices aged 16 to 24, the £2,000 apprenticeship hiring payment, the £3,000 Youth Jobs Grant and other available incentives.

Why should you hire an eligible apprentice?

The £1,000 Additional Payment provides employers with extra financial support when creating opportunities for young people who may benefit from additional support as they begin their careers. Apprenticeships also allow businesses to recruit for potential, attitude and willingness to learn, while developing skills around the needs of the organisation. When the additional payment is combined with fully funded training and other eligible incentives, employers can significantly reduce the cost of recruiting and developing young talent while building a skilled and committed workforce.

For employers looking to recruit young people, apprenticeships provide an opportunity to bring new talent into the business while developing the skills needed for the future. They allow businesses to recruit people with potential, provide structured training and give apprentices valuable experience in a real working environment.

The Government has introduced a range of financial incentives to make apprenticeship recruitment more accessible. One of these is an additional £1,000 employer payment for eligible apprentices. The payment is available when an apprentice is aged 16 to 18, or aged 19 to 24 and either a care leaver or has an Education, Health and Care (EHC) plan.

For employers, this additional payment provides further financial support when creating opportunities for young people who may benefit from additional support as they begin their careers. It also forms part of a wider package of apprenticeship funding that can make recruiting an apprentice a cost-effective way to grow your workforce.

What is the £1,000 apprenticeship employer payment?

The £1,000 payment is additional financial support for employers who recruit eligible apprentices. It applies to apprentices aged 16 to 18, as well as apprentices aged 19 to 24 who are eligible because they are care leavers or have an Education, Health and Care plan.

The payment recognises the additional support employers can provide when helping young people take their first steps into employment. Starting a new career can be a significant transition, particularly for young people who may face additional barriers when entering the workplace.

By providing employers with additional financial support, the Government is encouraging more businesses to create apprenticeship opportunities for these groups. For employers, the payment provides another reason to consider apprenticeship recruitment when expanding a team, developing new talent or planning for future skills needs.

Why does the £1,000 payment matter to employers?

Recruiting a new employee involves more than paying a salary. Businesses also need to consider recruitment, onboarding, training, supervision and the time required to help someone settle into their role. For a young apprentice, there may be an even greater focus on developing workplace confidence, professional behaviours and practical skills.

The additional £1,000 payment helps recognise this investment. It provides employers with further support while they give a young person the opportunity to gain meaningful employment and develop skills that can benefit both the apprentice and the business.

For smaller businesses in particular, additional financial support can make a difference when deciding whether they have the capacity to take on an apprentice. Rather than viewing apprenticeship recruitment solely as an additional cost, businesses can consider it as an investment supported by Government funding and incentives.

Apprenticeships can help businesses recruit for potential

One of the biggest challenges employers face is finding people with the right skills and experience. Recruiting experienced candidates can be expensive and competitive, particularly in sectors where skills shortages already exist. Employers may find themselves competing for the same candidates while struggling to find people who are a good fit for their organisation.

Apprenticeships provide a different approach. Instead of looking for someone who already has years of experience, businesses can recruit someone with enthusiasm, potential and a willingness to learn. The apprenticeship then provides a structured way for that individual to develop the skills needed for their role.

This can be particularly valuable when recruiting younger people. An apprentice may be at the beginning of their working life, but with the right training, support and workplace experience, they can develop into a confident professional who understands the organisation and its expectations.

The £1,000 employer payment helps make it easier for businesses to provide that opportunity while developing talent in a way that reflects their own needs.

Fully funded apprenticeship training makes the opportunity even stronger

The £1,000 payment is only one part of the current apprenticeship funding landscape. From 1 August 2026, apprenticeship training and assessment for eligible apprentices aged 16 to 24 is fully Government funded up to the relevant funding band maximum.

For eligible employers, this means there is no training and assessment cost within the funding band. This removes one of the biggest financial barriers traditionally associated with apprenticeship recruitment and can be particularly important when considering younger apprentices who may require significant investment in their professional development.

The employer still pays the apprentice’s wages and remains responsible for normal employment responsibilities. However, the cost of apprenticeship training itself can be covered by Government funding where the relevant eligibility requirements are met.

When combined with the £1,000 employer payment, fully funded training can make recruiting an eligible young apprentice considerably more accessible.

Additional Government incentives can also be available

The Government’s current apprenticeship support does not stop at the £1,000 payment. Eligible non-levy employers recruiting an additional apprentice aged 16 to 24 may be able to receive a £2,000 apprenticeship hiring payment for apprentices starting from 1 October 2026.

There is also a £3,000 Youth Jobs Grant available to employers recruiting eligible young people aged 18 to 24 who have been claiming Universal Credit for six months or more. Where the relevant eligibility criteria are met, the Youth Jobs Grant can be combined with the apprenticeship hiring payment.

Employers recruiting eligible Foundation Apprentices may also be able to access an incentive of up to £2,000. Some Government support can therefore be combined, allowing eligible employers to benefit from multiple forms of financial assistance when recruiting the same apprentice.

This makes it important for businesses to consider the full range of available incentives rather than focusing on one payment in isolation. Eligibility can depend on the apprentice, the employer, the apprenticeship programme and the start date, so employers should check the latest guidance before making decisions.

Supporting young people can benefit the whole business

The financial support available is valuable, but there is a much wider reason for employers to consider recruiting eligible young apprentices. Young people can bring enthusiasm, fresh perspectives and a willingness to learn. They may also bring new ideas into the workplace and develop alongside the organisation as they gain experience.

For employers, this creates an opportunity to shape talent from the beginning. An apprentice learns how the business operates, becomes familiar with its systems and processes and develops an understanding of its culture and expectations.

Over time, this can create employees who are not only skilled but also genuinely invested in the organisation. They understand how the business works because they have developed within it, which can support retention, workforce development and long-term succession planning.

The £1,000 payment supports more inclusive recruitment

The eligibility criteria for the additional £1,000 payment are designed to support apprenticeship opportunities for young people who may face additional barriers when entering employment.

For young people leaving care, starting an apprenticeship can provide an important route into sustainable employment, professional development and greater independence. For young people with an Education, Health and Care plan, an apprenticeship can provide the opportunity to gain practical experience and develop workplace skills in an environment where appropriate support can be provided.

Employers play an important role in making these opportunities possible. By recruiting an eligible apprentice, businesses can contribute to creating a more inclusive workforce while developing talented individuals who can make a valuable contribution to the organisation.

The additional employer payment recognises that commitment and provides financial support alongside it.

Apprenticeships are about more than the incentives

It can be tempting to focus on the numbers when looking at apprenticeship funding. A £1,000 employer payment is valuable, as are other incentives such as a £2,000 hiring payment or fully funded apprenticeship training.

However, the strongest reason to recruit an apprentice is the long-term value of developing a person within your organisation. Apprentices can become experienced team members, future supervisors and potential leaders. They gain knowledge specific to your organisation while building nationally recognised skills and qualifications.

For employers, this can support succession planning and reduce the need to continually recruit externally whenever a role becomes available. The financial incentives help make that investment more accessible, but the return can continue long after the funding has been received.

What does the £1,000 payment mean for smaller businesses?

For smaller employers, recruiting a young apprentice can sometimes feel like a significant commitment. There may be concerns about having enough time to provide support, whether the business can afford another employee or how to find the right candidate.

Government funding can help address some of these concerns. The £1,000 employer payment provides additional financial support for eligible apprentices, while fully funded apprenticeship training can reduce the cost of their formal development. Other incentives may also be available depending on the circumstances of the apprentice and employer.

This means smaller businesses can potentially access significant support while developing someone who can grow alongside the organisation. For businesses that have struggled to compete for experienced candidates, apprenticeships can provide a different and more sustainable route into recruitment.

Finding the right apprentice doesn’t have to be difficult

Financial support is only useful if businesses can find the right person to recruit. Many employers are interested in apprenticeships but worry that the recruitment process will take too much time. Advertising a vacancy, attracting applications, reviewing candidates, arranging interviews and managing communication can all add pressure to an already busy team.

At Educationwise, we offer a completely free recruitment service to help employers find suitable apprentices. We can advertise your vacancy, attract candidates, shortlist applications and support you throughout the recruitment process.

There are no traditional recruitment agency fees, meaning businesses can access professional recruitment support without adding another cost to the process. We can also help employers understand the Government funding and incentives that may be available, making it easier to assess the potential support before recruiting.

Who could benefit from the £1,000 payment?

The additional employer payment is particularly relevant for businesses considering recruiting apprentices aged 16 to 18, apprentices aged 19 to 24 who are care leavers, or apprentices aged 19 to 24 who have an Education, Health and Care plan.

The payment is subject to the relevant Government eligibility requirements, so employers should check the latest guidance before relying on the funding. It is also worth considering whether the apprentice and employer qualify for other forms of apprenticeship funding or financial support.

The combination of several eligible incentives can make a substantial difference to the overall cost of recruitment and training. However, employers should confirm the specific rules that apply to their circumstances before making financial assumptions.

A supported route into employment

The £1,000 apprenticeship employer payment represents more than a financial incentive. It is part of a wider approach to encouraging employers to give young people the opportunity to develop their skills, gain workplace experience and begin building long-term careers.

For employers, it creates an opportunity to invest in talent while accessing additional financial support. For apprentices, it can provide a structured route into employment where they can earn a wage, gain practical experience and work towards a recognised qualification.

For businesses, it can also help create a workforce that is skilled, motivated and developed around the needs of the organisation. The payment supports the initial commitment, while the long-term benefits can continue through the apprentice’s development and progression.

Is it time to recruit your next apprentice?

The current apprenticeship funding landscape provides employers with valuable support when recruiting eligible young people. The £1,000 employer payment can provide additional financial assistance when recruiting apprentices aged 16 to 18, or eligible apprentices aged 19 to 24 who are care leavers or have an Education, Health and Care plan.

Alongside this, eligible apprentices aged 16 to 24 can benefit from fully funded apprenticeship training. Employers may also qualify for the £2,000 apprenticeship hiring payment, Youth Jobs Grant, Foundation Apprenticeship incentives and employer National Insurance relief, depending on their circumstances.

The result is a recruitment opportunity that can benefit both the employer and the apprentice. If you are looking to expand your team, develop future talent or create opportunities for young people, now is a good time to explore apprenticeship recruitment.

Educationwise can help you understand the funding available, identify the right apprenticeship programme and find suitable candidates through our free recruitment service.

Get in touch with Educationwise today to find out whether your business could benefit from the £1,000 apprenticeship employer payment and other Government support available when recruiting an apprentice.

Government funding, incentives and eligibility criteria are subject to change. Please speak to Educationwise for the latest guidance relevant to your organisation.