Apprenticeship Incentive Payments Changes

Hiring a 16–18-year-old school leaver as an apprentice isn’t just a talent strategy — it can deliver substantial financial incentives for UK employers!

Hiring young apprentices from October 2026 could be one of the most cost-effective recruitment strategies available. Let’s see what financial support is available:

NOW: Employer National Insurance (NIC) exemption

For apprentices under the age of 25 on an approved apprenticeship standard earning below the Upper Secondary Threshold (£50,270). You pay 0% employer NICs, often saving £1,000+ per year per apprentice.

NOW: £1,000 16–18 apprentice incentive

All employers hiring a 16–18 apprentice can receive a £1,000 incentive payment (split into 2 x £500 payments and paid after 90 days and 365 days)

NEW: £2,000 non-levy employer hiring incentive (from October 2026) 

• Non-levy payers can receive up to £2,000 per new apprentice aged 16–24
• Apprentice must be a new recruit and have joined within the previous 3 months
• Paid in instalments – first payment triggered after completing the first 90 days

NEW: Fully funded training for non-levy employers (from October 2026) 

Non-levy paying employers will receive 100% government-funded apprenticeship training for under-25s

No employer contribution to training costs

Potential total non-levying paying employer support for one 16–18 apprentice from October 2026:

• £1,000 young apprentice incentive
• £2,000 non-levy incentive
• £1,000+ NIC class 1 secondary savings
• 100% funded training with no employer contribution

This means:

• Lower recruitment costs
• Government-backed training
• Reduced NIC costs
• Stronger talent pipeline
• Future-qualified professionals

If you would like to know more about accountancy apprenticeship options for school leavers with First Intuition, just get in touch!