Hiring Young People: How the £3,000 Youth Jobs Grant Works for Employers
Employers in Great Britain can claim £3,000 for each 18 to 24-year-old they hire who has been on Universal Credit and out of work for six months. The grant opened on 30 June 2026 and runs to October 2028.
By Entrepreneur Group · Published · Updated
Employers in Great Britain can claim £3,000 for each young person they hire through the Youth Jobs Grant. It is for people aged 18 to 24 who have been on Universal Credit and out of work for at least six months, and is paid in two parts: £1,800 after six weeks and £1,200 after 18 weeks. The scheme opened on 30 June 2026 and is listed as open until 31 October 2028.
The government hopes it will help up to 60,000 young people into work over three years. Youth unemployment is also part of the Prime Minister's "new offer" to business, which asks employers to help give "every young person a fair chance to find a good job".
Who can claim
According to the grant listing, employers must:
- operate in Great Britain;
- be registered with HMRC;
- be actively trading, with at least six months of trading history;
- pass the scheme's due diligence checks.
The scheme is expected to be open to employers of all sizes and sectors. The job must be registered with the scheme and be a suitable paid role. The jobcentre identifies eligible young people.
How payment works
The Department for Work and Pensions checks the young person's employment and earnings through HMRC's real-time payroll data before each payment. The government says this is done within 10 working days. The first £1,800 is paid from six weeks into the job and the remaining £1,200 after 18 weeks, as long as the conditions are met. Employers apply online through business.gov.uk and accept a short set of terms and conditions.
The wider youth guarantee
The grant sits alongside other measures for young people on Universal Credit:
- Jobs Guarantee: fully funded six-month jobs for 18 to 24-year-olds who have been looking for work for 18 months. The government pays 100% of employment costs for up to 25 hours a week at the relevant minimum wage. It started in April 2026 in six areas as a pilot.
- Jobcentre support: from 29 June 2026, 16 to 24-year-olds making a new Universal Credit claim get an in-depth work coach meeting by week 13, followed by four weeks of intensive help and up to six opportunities such as work, apprenticeships or training.
Is it worth it for a small business?
This section is editorial guidance.
For a small employer, £3,000 can cover a meaningful share of the cost of training a new starter. But the grant should not be the reason to create a role. Ask whether you have real work, someone to supervise and train the new hire, and the budget to keep them on after 18 weeks.
- Plan the first six weeks. Payments depend on the person still being employed. A clear induction and a named mentor make it more likely they stay.
- Check the terms. The grant listing does not set out minimum hours or contract length. Read the terms and conditions on GOV.UK before you commit.
- Think about the rules coming in. From 1 January 2027, the unfair dismissal qualifying period falls to six months under the Employment Rights Act, so run proper probation reviews.
- Talk to your local jobcentre. It identifies eligible candidates and can help match them to your role.
Frequently asked questions
How much is the Youth Jobs Grant?
Employers can receive £3,000 for each eligible young person they hire: £1,800 after six weeks and £1,200 after 18 weeks, once employment and earnings are verified.
Who is eligible for the Youth Jobs Grant?
The young person must be 18 to 24, on Universal Credit and out of work for at least six months. The employer must operate in Great Britain, be registered with HMRC and have at least six months of trading history.
When does the Youth Jobs Grant close?
The grant opened on 30 June 2026 and the government grant listing shows it open until 31 October 2028.
Sources
- GOV.UK: Funding for businesses who give youngsters a chance as government ramps up youth jobs drive (reviewed 27 October 2026)
- Find a grant (GOV.UK): Youth Jobs Grant (reviewed 27 October 2026)
- GOV.UK: PM puts new offer on the table to businesses in first talks with industry groups (24 July 2026) (reviewed 27 October 2026)