The headlines
- From 30 June 2026, employers can claim £3,000 for hiring an eligible 18 to 24-year-old who has been on Universal Credit and job-seeking for six months.
- Paid in two instalments: £1,800 after six weeks, then £1,200 after 18 weeks.
- Part of a £2.5 billion Youth Guarantee, alongside a separate Jobs Guarantee (fully funded six-month jobs in six pilot areas) and expanded jobcentre support.
- The smart move: it can stack with apprenticeship funding. Hire with the grant, then train with the levy.
- Do not confuse it with the £2,000 apprenticeship hiring grant (from October). They are different schemes, and you may qualify for both.
There is a new, straightforward incentive for any business thinking about taking on a young person. From 30 June 2026, the government's Youth Jobs Grant pays employers £3,000 for hiring an eligible 18 to 24-year-old, part of a wider £2.5 billion push to get a generation into work. For employers who were already minded to hire, it is close to free money. For those weighing it up, it tips the maths.
We are an apprenticeship provider, so our interest is honest and specific: this grant pairs naturally with training. Hire a young person with the grant, build them into real capability with a levy-funded apprenticeship, and you have turned a recruitment incentive into a long-term asset. Here is the detail.
What the Youth Jobs Grant is
The Youth Jobs Grant is a £3,000 payment to a business for each eligible young person it hires. The headline rules, from the Department for Work and Pensions:
- How much: £3,000 per eligible hire.
- When it is paid: £1,800 after six weeks of employment, then £1,200 after 18 weeks, if grant conditions are met.
- Who qualifies: a young person aged 18 to 24 who has been claiming Universal Credit and looking for work for six months. The jobcentre identifies eligible candidates.
- How to apply: a short online application via the government's recruit-with-Jobcentre-Plus service. You accept a brief set of terms, and the DWP verifies employment and earnings (typically within 10 working days) before paying.
- The aim: to help up to 60,000 young people aged 18 to 24 into work over three years.
It launched as the government extended more intensive jobcentre support to nearly a million young people, with major employers such as Merlin Entertainments backing the scheme. In short, there is real momentum and real budget behind getting young people hired.
Two grants, don't mix them up
This is where employers get confused, so it is worth being precise. There are two separate "grants for hiring" in play this year, and they are not the same thing.
| £3,000 Youth Jobs Grant | £2,000 apprenticeship hiring grant | |
|---|---|---|
| What it rewards | Hiring an unemployed young person | Taking on a young apprentice |
| Who | Aged 18 to 24, on Universal Credit and job-seeking for 6 months | Apprentice aged 16 to 24 at a non-levy employer |
| From | 30 June 2026 | 1 October 2026 |
| Run by | DWP (Youth Guarantee) | Apprenticeship funding rules |
They have different eligibility, but they are not mutually exclusive. Depending on the circumstances, a single young hire could attract the Youth Jobs Grant and, if you put them on an apprenticeship, the apprenticeship incentives too. We cover the apprenticeship side in our guide to the 2026/27 funding rules.
The bigger picture: the Youth Guarantee
The Youth Jobs Grant is one part of a £2.5 billion drive. Two other pieces are worth knowing:
- The Jobs Guarantee. For young people who have been unemployed even longer (on Universal Credit and job-seeking for 18 months), the government will fully fund a six-month job, covering 100% of employment costs for up to 25 hours a week at minimum wage, in six pilot areas (including Greater Manchester, the East Midlands, and Birmingham & Solihull).
- Expanded jobcentre support. From 29 June, every jobcentre offers more intensive help, and at week 13 a "Youth Guarantee Gateway" offers each young person up to six options, including work, work experience, training and an apprenticeship.
Apprenticeships are written into this as a core route, which is exactly why the grant and a training plan fit together so neatly.
The opportunity: hire young, then build the skill
Here is the move for employers. The Youth Jobs Grant gets a young person through the door and offsets the early cost. But a grant is a one-off; capability is what lasts. Pair the hire with a levy-funded apprenticeship and you turn a subsidised recruit into a trained, productive member of the team, and for under-25s at non-levy employers, the training itself is government-funded from August 2026.
For a forward-looking business, the natural thing to train a young hire in is AI. The AI & Automation Practitioner Level 4 takes someone with no coding background and builds them into a confident, practical AI user who can automate real work, exactly the kind of future-facing capability the youth pivot in apprenticeship funding is designed to encourage. You bring in fresh talent cheaply, and you build the skills your business will need for the next decade.
Hire an eligible young person, claim the £3,000 Youth Jobs Grant, and put them on a levy-funded apprenticeship (training government-funded for under-25s at non-levy employers from August). Subject to eligibility, you may also pick up the £2,000 apprenticeship hiring grant from October. That is a lot of support for one good hire.
What employers should do now
- Check eligibility. The grant is for 18 to 24-year-olds on Universal Credit for six months, identified by the jobcentre. If you are planning to hire young, flag it.
- Apply online. Use the government's recruit-with-Jobcentre-Plus service, accept the terms, and the DWP pays in two instalments after verification.
- Plan the training alongside the hire. Decide what you want them to become, not just that you want to fill a seat. An apprenticeship turns the grant into lasting capability.
- Get a funding review. We will map which incentives you can combine, the Youth Jobs Grant, apprenticeship funding, the £2,000 apprenticeship grant, and confirm what you would actually pay.
Thinking of taking on a young person? We will help you stack the Youth Jobs Grant with a levy-funded apprenticeship so your new hire becomes real capability. The AI & Automation Practitioner Level 4 is fully funded and needs no coding.
Book a free funding review →Scheme details are based on the DWP announcement of 29 June 2026. Always confirm current eligibility and terms before applying, the official application sets out the conditions in full.
Frequently asked questions.
What is the Youth Jobs Grant?
The Youth Jobs Grant is a £3,000 payment for businesses that hire an eligible young person aged 18 to 24 who has been on Universal Credit and looking for work for six months. It launched on 30 June 2026 as part of the government's Youth Guarantee, and aims to help up to 60,000 young people into work over three years.
How much is the Youth Jobs Grant and when is it paid?
It is worth £3,000 per eligible hire, paid in two instalments: £1,800 after six weeks of employment and £1,200 after 18 weeks, provided the grant conditions are met. The DWP verifies employment and earnings, typically within 10 working days.
Who is eligible for the Youth Jobs Grant?
The hire must be aged 18 to 24 and have been claiming Universal Credit and looking for work for six months. The eligible young person is identified by the jobcentre. The employer applies online, accepts a short set of terms, and the grant is paid once the DWP has verified employment and earnings.
Is the £3,000 Youth Jobs Grant the same as the £2,000 apprenticeship hiring grant?
No, they are two different schemes. The £3,000 Youth Jobs Grant (DWP) is a recruitment incentive for hiring an unemployed 18 to 24-year-old who has been on Universal Credit for six months. The £2,000 apprenticeship hiring grant, from October 2026, is for taking on an under-25 apprentice at a non-levy employer. They have different rules, and depending on the circumstances an employer may be able to benefit from both.
Can I combine the Youth Jobs Grant with an apprenticeship?
Potentially, yes, subject to each scheme's eligibility. The Youth Jobs Grant rewards hiring an eligible young person, while apprenticeship training is funded separately through the Growth and Skills Levy, with training for under-25s at non-levy employers government-funded from August 2026. So you could hire an eligible young person, claim the grant, and put them on a funded apprenticeship. TESS Group can check what applies to your situation.
How do employers apply for the Youth Jobs Grant?
Employers complete a short online application via the government's recruit-with-Jobcentre-Plus service, accept the terms and conditions, and hire an eligible young person identified by the jobcentre. Funding is then paid in two instalments once the DWP has verified employment and earnings.