Recruitment is expensive and risky for a small business. Every bad hire costs time and money. That is why it is worth knowing that, since the summer, government has been paying employers to take on young people, and in some cases two schemes can be claimed for the same person.

The Youth Jobs Grant: £3,000 per hire

Launched on 30 June 2026, the Youth Jobs Grant pays employers £3,000 for each eligible young person they recruit. To qualify, the new recruit must be:

• aged 18 to 24
• claiming Universal Credit, and
• unemployed and looking for work for at least six months.

The job must be at least 25 hours a week, at no less than the National Minimum Wage or National Living Wage, and must last at least four months. Your business must operate in Great Britain and have been trading for at least six months before you register the vacancy. Sole traders hiring their first employee can apply.

The money comes in two parts once the Department for Work and Pensions has verified the job and earnings: £1,800 after six weeks and £1,200 after 18 weeks. The scheme runs until it closes to new participants in October 2028. The Chamber has already shared the application QR code and employer guide on its news page.

The apprenticeship route

If you would rather train someone up, the apprenticeship offer for small firms also improved this year:

• Free training. From 1 August 2026, for employers who don’t pay the levy (payroll under £3 million), government covers 100% of training and assessment costs for apprentices aged under 25, up to the funding band maximum.
• £2,000 hiring payment. For apprenticeships starting on or after 1 October 2026, non-levy employers get £2,000 for each new apprentice aged 16 to 24, paid in two equal instalments. The first payments are expected from January 2027.
• No employer National Insurance on earnings for apprentices under 25, up to the upper secondary threshold.

Can you claim both?

Yes, in the right circumstances. DWP’s employer FAQ says the Youth Jobs Grant can be layered with apprenticeship payments, including the hiring payment for non-levy employers. So a young person who has been on Universal Credit for six months and starts an apprenticeship with a small Havering employer could bring £3,000 plus £2,000, plus free training. The job still has to meet both schemes’ rules, so check the detail before you advertise.

Why this matters in Havering

Entry-level roles in hospitality, retail, trades, care and logistics are where these schemes are likely to help Havering employers most. At the same time, the cost of a new starter has risen: the National Living Wage for over-21s reaches £13.21 an hour in April 2027 and sick pay now starts from day one. These schemes are designed to take some of the risk out of hiring someone with no track record.

There is a community angle too. A young person who gets a first job with a local firm tends to stay local, spend local and, in time, start businesses of their own.

Practical tips

• Use Jobcentre Plus. It can put forward candidates who qualify for the grant, and you can meet them before you commit.
• Talk to local colleges. Training providers serving Havering, including New City College and Barking & Dagenham College, can help you choose an apprenticeship standard and handle much of the paperwork.
• Plan the first four months. Both schemes pay out only if the person stays. A buddy, a simple training plan and fortnightly check-ins make a real difference.
• Mind the new employment rules. From January 2027 the unfair dismissal qualifying period drops to six months (see Article 2), so set clear expectations from day one.