The Youth Jobs Grant pays an employer £3,000 for hiring an eligible young person, and a small business can claim it now. The government pointed to it on 15 October, when some of the biggest hospitality brands pledged 100,000 jobs for young people who are not in education, employment or training.
01What was announced
According to the Department for Work and Pensions, brands including Whitbread, McDonald's and Nando's will commit to 100,000 paid jobs over three years. The partnership is with UKHospitality. It follows a similar pledge of 100,000 jobs in retail last month.
The announcement says the government has introduced "£3,000 hiring incentives for employers". It does not say how a small employer can claim. That detail sits in a scheme that opened in the summer.
02Can a small business claim the Youth Jobs Grant?
Yes, if it meets the rules. The money is the Youth Jobs Grant, which opened on 30 June 2026 across England, Scotland and Wales. Employers of any size can apply, including sole traders who plan to hire.
- Your business must have been trading for at least six months.
- You must be registered with HMRC and run a PAYE payroll.
- The job must be at least 25 hours a week and last at least four months.
- It must pay at least the National Minimum Wage or National Living Wage.
- The young person must be 18 to 24, on Universal Credit and out of work for at least six months.
The jobcentre refers candidates to your vacancy. You cannot hire someone you already know and then claim. The grant comes in two parts: £1,800 after about six weeks and £1,200 after about 18 weeks, once HMRC payroll records confirm the earnings.
You apply through the government's Find a Grant service. The Department aims to confirm whether you qualify within 10 working days. The scheme is due to take new vacancies until October 2028, though the government can change it with four weeks' notice.
This is a different scheme from the Jobs Guarantee, which pays wages for young people out of work for longer. We covered the Jobs Guarantee changes in September.
03Planning the hire
£3,000 helps, but it covers only part of the cost. You still pay the wages, employer National Insurance and pension contributions. Our guide to what it costs to employ someone sets out the full figure.
The first payment arrives about six weeks after the start, so plan for the wages before then. If a new hire will stretch your cash flow, business growth finance can cover the months before the role pays for itself.
