- 01 June 2026
- Recruitment & Employer Information &
Calling all Salon Owners… have you heard the news?
The government has increased incentives for SMEs to encourage more employers to hire young people as apprentices in various sectors, including the hair and beauty industry.
So this is the time to ACT to take advantage of the new funding rules!
What does this mean to you? Well, this is what we know so far…
The New Incentives include:
The £1,000 Young Apprentice Payment is available now to all Employers
- This is the existing incentive and continues into 2026.
- If you hire an apprentice aged 16-18, or one aged 19-24 who has an Education, Health and Care Plan (EHCP) or is a care leaver, you will receive £1,000.
- The payment is made in two equal instalments of £500 to you, via your training provider.
The £2,000 SME Hiring Incentive will be available from October 2026 (backdated from 1 July enrolments).
- This is for Non-Levy SMEs Only. From 1 October 2026, eligible employers will receive £2,000 for every apprentice they hire aged 16-24.*
*This incentive will apply to those starting an apprenticeship from 1 October 2026, providing they have started their job with their employer within the past 3 months. We await further information on the associated deadlines for this incentive.
- This payment is made in two equal instalments of £1000 to you, via your training provider.
Plus, employers also benefit from:
- NO training costs for eligible under-25 apprentices. This means the government covers the full 100% of training and assessment costs up to the funding band maximum
- NO employer National Insurance contributions for apprentices under 25 earning below £50,270.
The £3,000 Universal Credit Youth Jobs Grant is available from June 2026
- This £3,000 incentive is available to all employers, not just SMEs, who hire an 18-24 year old who has been claiming Universal Credit for six months or more.
- This is paid in two instalments of roughly equal amounts at month 1 and month 3 (to be confirmed), paid directly to the employer from DWP. Employers will need to apply directly for this this payment. It is not managed by training providers.
- The Youth Jobs Grant can also be combined with other apprenticeship incentives.
Please note this is the current understanding of the new incentives, but we await final confirmation from government, so may be subject to change.
What does this mean for YOU in YOUR Salon?
To help you make sense of these new incentives, here are some scenarios for you:
Scenario 1:
You are a salon recruiting an apprentice aged between 16-18 between July-September
You will now receive £2,000, plus the existing £1,000 incentive = £3,000
+ No training costs and No National Insurance Contributions
Scenario 2:
You are a salon recruiting a 19-year-old who has been on Universal Credit for over 6 months
You will potentially receive £3,000, plus £2,000 for hiring this apprentice = £5,000.
+ No training costs and No National Insurance Contributions
Scenario 3:
You are a salon recruiting a 20-year-old apprentice
You will receive £2,000.
+ No training costs and No National Insurance Contributions
Scenario 4:
You are a salon recruiting a 26-year-old apprentice
Unfortunately, you will not be eligible for the incentives under the current system and would be required to provide a 5% employer contribution for training. But older learners can bring valuable experience which may make recruitment worthwhile to you e.g. customer service, social media and/or marketing and promotion skills.
Note: All incentives are paid at various times and/or instalments – full information will be provided at enrolment.
Thus the new incentives are real, and the long-term return of having a skilled, qualified team member by the end is the key outcome of hiring an apprentice. The first-year financials are of value and provide some support during the first year.
So to take advantage of all the new incentives, it’s time to ACT NOW.
Start advertising for an apprentice with Kleek Apprenticeships today.
Find the best apprentice for your business and give them the best training available with Kleek Apprenticeships, the UK’s No.1 hair and beauty training provider.