The government has announced a series of youth employment support measures aimed at making it easier for young people to enter work, including a financial incentive for employers taking on apprentices and an expansion of the Jobs Guarantee for young disabled people and those with long-term health conditions.
In Brief
The government has announced a series of youth employment support measures aimed at helping more young people enter work. These include a £2,000 incentive for eligible employers hiring young apprentices in England, expanded apprenticeship brokerage from spring 2027 and an extension of the Jobs Guarantee to eligible young disabled people and those with long-term health conditions.
Key Points
- From 1 October 2026, non-levy-paying employers in England can receive a £2,000 payment when they recruit an eligible apprentice aged 16 to 24.
- The apprenticeship payment is made in two £1,000 instalments: the first after 90 days and the second after one year, or after 242 days for shorter apprenticeships and foundation apprenticeships.
- From spring 2027, apprenticeship brokerage will expand across all 14 existing Mayoral Strategic Authorities with directly elected mayors in England, backed by an additional £100 million over two years.
- From April 2027, the Jobs Guarantee will expand to eligible young people receiving health benefits, who will be offered a guaranteed job on a voluntary basis from week 13 after their Work Capability Assessment.
- The government will fund 100% of wage costs under the expanded Jobs Guarantee for up to 25 hours a week for six months, alongside mentoring and tailored support.
- The wider £2.5 billion Youth Guarantee and Growth and Skills Levy investment is intended to support almost one million young people, including through 50,000 additional youth apprenticeships.
The measures come against a difficult background for younger workers. As we examined in our recent article on the difficulties young people face securing their first job, entry-level opportunities have contracted and almost one million 16 to 24-year-olds remain outside education, employment or training.
The latest youth employment support combines employer incentives, apprenticeship brokerage and targeted job placements. Some apprenticeship measures apply specifically in England, while other programmes operate more widely across Great Britain.
£2,000 Payment for Employers Hiring Young Apprentices
From 1 October 2026, non-levy-paying employers in England can receive a £2,000 hiring payment when they take on a new apprentice aged 16 to 24. The apprentice must generally have started their job no more than 90 days before beginning apprenticeship training.
The payment can be used towards costs such as equipment, travel or uniforms, making youth employment support more accessible to smaller businesses facing the initial costs of recruitment.
Employers do not need to apply separately. Eligible apprentices are identified when training begins and the training provider passes the funding to the employer. The first £1,000 is payable after 90 days and the second after one year, or after 242 days for shorter apprenticeships and foundation apprenticeships. The apprentice must remain employed when each payment becomes due.
Different forms of apprenticeship support can be combined where the eligibility conditions are met. Depending on the apprentice and the employer’s circumstances, total government support can reach up to £8,000 per apprentice.
Apprenticeship Website and Local Brokerage
The government has refreshed apprenticeships.gov.uk, giving employers information on hiring, funding and eligibility while allowing young people to search for opportunities and application guidance.
From spring 2027, apprenticeship brokerage will also be extended across all 14 existing Mayoral Strategic Authorities with directly elected mayors in England. An additional £100 million over two years will support services connecting 16 to 24-year-olds with local employers and regional skills needs.
This element of youth employment support recognises that financial incentives alone may not be enough. Smaller employers can need practical help navigating the apprenticeship system, while young people need clearer routes to suitable vacancies.
Jobs Guarantee Expanded for Young Disabled People
From April 2027, the Jobs Guarantee will expand to eligible young people receiving health benefits. Participation will be voluntary, with qualifying participants offered a guaranteed job from week 13 after their Work Capability Assessment.
The government will fund 100% of wage costs for up to 25 hours a week for six months. Participants will also receive mentoring and tailored support with mental health, finances and housing, while employers will receive help with onboarding costs.
The scheme was launched earlier in 2026 for long-term unemployed 18 to 24-year-olds who had been claiming Universal Credit and looking for work for 18 months. The new route substantially broadens youth employment support for young disabled people and those with long-term health conditions.
The wider Jobs Guarantee is intended to help up to 90,000 young people into work by the end of the Parliament.
Disability and Youth Employment
Alan Milburn's 2026 interim review found that 45% of young people who are not in education, employment or training report having a disability, compared with 21.1% in 2013/14.
Targeted youth employment support may help remove barriers, but employers remain subject to their normal legal obligations. Under the Equality Act 2010, employers must not discriminate against disabled applicants or employees and must make reasonable adjustments where the statutory duty applies.
The government's Right to Try reforms took effect on 30 April 2026. For people receiving certain health and disability benefits, doing paid work or volunteering does not, by itself, trigger reassessment. Existing earnings, permitted-work and reporting rules still apply.
Wider Youth Guarantee Investment
The measures sit within a wider £2.5 billion investment over three years in the Youth Guarantee and Growth and Skills Levy. The government says this investment will support almost one million young people, including through 50,000 additional youth apprenticeships.
Employers may also be able to claim the £3,000 Youth Jobs Grant when recruiting an eligible 18 to 24-year-old who has been on Universal Credit and looking for work for at least six months. That grant is separate from the £2,000 apprenticeship hiring payment and has different eligibility and application rules.
Taken together, these schemes represent a significant expansion of youth employment support. Employers should check the conditions attached to each payment rather than assume every form of funding can automatically be combined.
What the Measures Mean for Employers
For employers, the new youth employment support provides financial assistance and access to future talent. The £2,000 apprenticeship payment may reduce the initial cost of taking on a young worker, while brokerage services should help identify suitable candidates and training arrangements.
Businesses participating in the Jobs Guarantee should look beyond the six-month wage subsidy. Induction, supervision, reasonable adjustments and opportunities to develop transferable skills will influence whether a placement leads to sustainable employment.
Effective youth employment support should therefore be treated as more than a recruitment subsidy. Employers that use the schemes to build skills and progression opportunities are more likely to gain long-term workforce benefits.
Conclusion
The latest reforms broaden youth employment support through apprenticeship incentives, local brokerage and guaranteed jobs for some young disabled people and those with long-term health conditions.
The financial assistance may encourage employers to create opportunities that would otherwise not exist. The longer-term test will be whether those opportunities lead to sustained employment, recognised skills and progression.
For employers, youth employment support offers a way to reduce some recruitment costs while developing future talent. For young people, success will depend on whether the new routes provide not simply a first job, but a credible path into a lasting career.
Employers: What This Means
The new youth employment support measures create additional financial and practical incentives for employers to recruit and develop younger workers. Businesses considering apprenticeships or participating in the Jobs Guarantee should check the eligibility conditions carefully, plan appropriate workplace support and treat the schemes as part of a longer-term skills and recruitment strategy rather than simply as short-term subsidies.
- If you are a non-levy-paying employer in England, check whether new apprentices aged 16 to 24 qualify for the £2,000 hiring payment and ensure the employment and training dates satisfy the scheme rules.
- Review the different forms of apprenticeship and youth employment support available, as the £2,000 payment, Youth Jobs Grant and other funding have separate eligibility, payment and application requirements.
- Plan induction, supervision, mentoring and any reasonable adjustments needed when taking part in the Jobs Guarantee. Employers should also consider whether an eligible disabled employee could receive additional workplace support through Access to Work, which operates separately from the employer’s legal duty to make reasonable adjustments.
- Use the financial incentives to support genuine skills development and progression. Apprenticeships and subsidised placements are more likely to provide lasting value where employers offer structured training, clear responsibilities and realistic opportunities to remain in work or progress.
