Youth Jobs Grant: How Employers Can Claim the £3,000 Payment in 2026

Last reviewed: 15 July 2026 against the grant guidance published for the 30 June launch.

Which employers can apply?

The scheme is open to employers of any size and sector that meet DWP's checks, including sole traders intending to hire. The employer must operate in Great Britain, have traded for at least six months, have an active PAYE scheme, hold the required tax and D-U-N-S references, and satisfy the financial and due-diligence conditions. Central government departments, their executive agencies and non-departmental public bodies are excluded.

DWP can reject or withdraw an application where the organisation, vacancy or proposed use of grant funding does not meet the guidance. Treat eligibility as an approval process, not a self-declared entitlement.

The number of funded employees is capped: an employer with 0–3 existing employees can have one, an employer with 4–9 can have two, and an employer with 10 or more can have funded employees equal to no more than 20% of its workforce.

Which young people are eligible?

The candidate must be aged 18 to 24 and normally have been out of work and receiving Universal Credit for at least six months. They must not be eligible for the separate Jobs Guarantee route, which normally applies after a longer qualifying period.

DWP confirms whether the person meets the candidate conditions. An employer should recruit through the approved process and should not ask a candidate to prove benefits history independently or promise the role on the assumption that the grant will follow.

What kind of job qualifies?

The vacancy must be a real paid job, not a temporary training placement created to obtain the grant. It must:

• provide at least 25 paid hours a week;
• last at least 16 weeks;
• pay at least the applicable minimum wage;
• be additional and not displace an existing worker or reduce another worker's hours;
• provide genuine work and appropriate supervision; and
• spend no more than 50% of the role on online training.

These are minimum conditions, not a recommended employment design. A sustainable job with normal onboarding, support and progression is more likely to reach the later payment milestone and produce a worthwhile outcome.

Apply and obtain approval before the start

1. Read the current grant guidance and apply through Find a Grant.
2. Complete DWP's employer due-diligence checks.
3. Submit the proposed vacancy and obtain approval.
4. Recruit an eligible person through the required route.
5. Complete the pre-start form before the employee begins work.
6. Put the worker on the correct PAYE scheme and report paid hours accurately through Real Time Information.

Hiring first and applying later is not a compliant workaround. The vacancy and candidate need to remain aligned with the approved details.

The £1,800 and £1,200 payment timeline

DWP uses PAYE Real Time Information to check the paid-hours milestones. Employers should submit correct payroll data on time: DWP will not accept payslips or other evidence as a substitute for the RTI check. Keep the scheme, vacancy and employment records for seven years after the funded employee is no longer covered. The maximum is £3,000; a missed or failed trigger can reduce the amount received.

Can the job also be an apprenticeship?

The grant guidance does not turn every eligible job into an apprenticeship and an apprenticeship does not automatically qualify for the grant. If the role is also planned as an apprenticeship, it must independently meet the apprenticeship funding rules, including a genuine occupational need, approved standard and version, eligible provider, training plan and start-date funding route.

A separate £2,000 apprenticeship hiring payment begins for eligible non-levy employers' 16–24 starts from 1 October 2026. Do not add £3,000 and £2,000 together in a proposal without written confirmation for the specific hire. Youth Jobs Grant funding cannot pay costs already funded by DWP, another Crown body or local government.

Employer checklist

• Confirm the organisation operates in Great Britain, has traded for at least six months and has the required PAYE, tax and D-U-N-S references
• Keep proposed funded-employee numbers within the scheme's workforce-size cap
• Apply through Find a Grant and pass DWP due diligence
• Obtain vacancy approval before offering or starting the role
• Let DWP confirm the candidate's age, Universal Credit and work-status eligibility
• Offer at least 25 paid hours a week for at least 16 weeks
• Meet minimum-wage, no-displacement and online-training limits
• Complete the pre-start form before employment begins
• Submit accurate PAYE RTI and monitor the week 6, 10, 18 and 22 checks
• Retain the required records for seven years after scheme coverage ends
• Separate grant-funded costs from any other public funding

Grant terms can change. Save the version used for the application and recheck the official Youth Jobs Grant guidance before each new vacancy.