FIS points finishes and interiors firms to £3,000 and £2,000 youth hiring payments

The Finishes and Interiors Sector (FIS) has briefed its members on three government payments for taking on young people, including £2,000 for each new apprentice aged 16 to 24 and a £3,000 Youth Jobs Grant.

In a notice published on 28 October, FIS said the payments sit under the government's Youth Guarantee and directed members with questions to its Skills Team on 0121 707 0077 or at info@thefis.org.

The Department for Work and Pensions (DWP) said on 1 October that the Apprenticeship Hiring Payment forms part of a £2.5bn investment in the Youth Guarantee and the Growth and Skills Levy that includes 50,000 more youth apprenticeships.

Pat McFadden, Work and Pensions Secretary, said: "We promised 50,000 more youth apprenticeships, and we're delivering on that promise, one hire at a time."

The payments

FIS set out the schemes as follows, with the official conditions published by DWP and the Department for Education (DfE) alongside.

Payment	Value	Who qualifies, according to FIS
Apprenticeship Hiring Payment	£2,000	Non-levy employers in England, new apprentices aged 16 to 24
Youth Jobs Grant	£3,000	Employers in Great Britain hiring 18 to 24-year-olds on Universal Credit and looking for work for over six months
Apprentice incentive, aged 16 to 18	£1,000	Employers in England
Foundation apprentice incentive, aged 16 to 21	£2,000	Employers in England

FIS said the hiring payment goes to employers in England that do not pay the Apprenticeship Levy and is paid automatically by the training provider in two equal instalments. FIS gave the instalment points as 90 days and one year after the apprenticeship started; DWP's release said the second instalment falls after 242 days for shorter apprenticeships and foundation apprenticeships.

DWP added conditions that FIS's notice did not cover. The apprentice must have started their job with the employer no more than 90 days before beginning apprenticeship training, and the employer only receives each payment if the apprentice is still employed when it falls due. Training providers must pass the money to the employer within 30 working days of receiving it from government.

DfE guidance says non-levy employers can get the £2,000 hiring payment from October 2026. The same guidance says that, for employers that do not pay the levy and for levy payers that have exhausted their funds, government funds all apprenticeship training and assessment costs, up to the funding band maximum, where the apprentice is aged 16 to 24 at the start of training, with an extra £1,000 for eligible apprentices and up to £2,000 for eligible foundation apprenticeships, paid in instalments.

Craig Beaumont, Executive Director of the Federation of Small Businesses, said: "Taking on an apprentice comes with extra costs so financial support can make a real difference for small business owners."

Youth Jobs Grant

FIS said the Youth Jobs Grant pays £3,000 to employers across Great Britain taking on an 18 to 24-year-old who has been on Universal Credit and looking for work for over six months. Vacancies must offer at least 25 hours a week for 16 weeks, FIS said, with £1,800 paid after six weeks and £1,200 after 18 weeks.

DWP's guidance says the grant launched on 30 June 2026 across Great Britain and aims to support up to 60,000 job opportunities over three years. The first £1,800 is paid if the young person has worked at least 50 hours when DWP checks HMRC Real Time Information (RTI) at week six, and the £1,200 follows if they have worked at least 300 hours at the week 18 check.

Roles must be genuine paid work of at least 25 hours a week and must not displace existing employees, workers, apprentices or contractors, the guidance says.

Jobs Guarantee

The third scheme, the Jobs Guarantee, funds a six-month paid job for 18 to 24-year-olds who have been on Universal Credit for 18 months or more, FIS said. DWP's June release said government will fund 100% of employment costs for up to 25 hours a week at the relevant minimum wage, and cited nearly one million young people not earning or learning by week 13 of their Universal Credit claim.

FIS told members the scheme is due to roll out across Great Britain from November. DWP's own Jobs Guarantee page, updated on 21 October, says Phase One is live in six areas and now closed to applications, with national rollout going live later in 2026; it gives no month. DWP expects the scheme to support over 90,000 young people over the next three years.

FIS said DWP is hosting a series of webinars on the Jobs Guarantee for members that want to find out more.