England: £2,000 payment when non-levy employers take on apprentices aged 16 to 24

Employers in England that sit outside the apprenticeship levy can now receive £2,000 when they take on an eligible 16 to 24 year old as a new apprentice, for starts on or after October 1, 2026^[2]. For hotels and cleaning contractors in England that recruit young people into housekeeping roles, the payment adds to existing apprenticeship support. It is paid in stages, though, and only while the apprentice stays in training. The scheme covers England only. Hotels and contractors in Scotland, Wales and Northern Ireland should check the separate support available there.

How the payment works

According to the Department for Education's funding guide for England, the £2,000 is generated for non-levy employers once the apprentice meets the eligibility conditions set in the funding rules^[1]. Those rules contain further conditions, including whether someone who already works for you counts as a new apprentice, and some edge cases on age, so check them with your provider before you hire. The payment arrives in two halves of equal size. The first is due after the apprentice has completed 90 days of training, the second after 365 days^[1]. Where a program normally lasts less than 12 months, and for foundation apprenticeships, the second half is brought forward to day 242^[1].

The money does not come straight from the government to the employer. The training provider receives it and has a duty to forward it to the employer^[1]. Because both halves depend on the apprentice still being in training at set points, budget only for the installments you expect to reach.

Other support that may apply

The hiring payment sits alongside other measures listed by the Department for Education:

• Younger starters: an extra £1,000 when a staff member aged 16 to 18 begins an apprenticeship, whether recruited for it or already on the payroll^[2].
• Youth Jobs Grant: £3,000 is listed for taking on an 18 to 24 year old apprentice with at least 6 months on Universal Credit^[2]. The grant has its own further conditions, so check the scheme terms before counting on it.
• National Insurance: no employer National Insurance is due on qualifying earnings of apprentices younger than 25^[2].
• Training costs: for eligible apprentices, the government normally pays the entire training bill^[2].

The government puts the possible total at up to £8,000 per apprentice^[2]. Not every hire will qualify for every item, so check which ones apply to your case.

What to check before you hire

Start with where the apprentice will be employed and your levy status, since the £2,000 payment is only for employers in England outside the levy. Confirm the apprentice's age at the start date, that the start falls on or after October 1, 2026, and that the person meets the funding rules' definition of a new apprentice. Ask a training provider whether an apprenticeship suits the role you want to fill, and how and when they will pass the payment on. In outsourced housekeeping, the payment goes to whoever employs the apprentice, which may be the contractor rather than the hotel. Check eligibility details with the provider or your advisor before you count on the money.

ARPCLEAN take

What does this mean for housekeeping?

For cleaning contractors

• Levy status: confirm you are a non-levy employer in England before budgeting the £2,000 for a new apprentice.
• Cash timing: plan for two installments at 90 and 365 days (or 242 days for shorter programs), passed on by the provider.

For hotels

• Who employs: if housekeeping is outsourced, check whether the hotel or the contractor would be the apprentice's employer.
• Retention: support new apprentices through the first 90 days, since the first installment depends on them still being in training.

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