SMEs Offered Up to £3,000 to Recruit Young Talent Through New DWP Youth Jobs Grant

Small and medium-sized businesses across Great Britain can now access up to £3,000 in government funding for every eligible young person they recruit, following the launch of the Department for Work and Pensions’ new Youth Jobs Grant.

The initiative, which opened for applications on 30 June 2026, is designed to help employers fill vacancies while giving unemployed young people aged 18 to 24 the opportunity to begin long-term careers. The scheme forms part of the Government’s wider Youth Guarantee and aims to support around 60,000 young people into sustained employment over the next three years.

For SMEs facing ongoing recruitment challenges, rising labour costs and skills shortages, the grant offers a practical financial incentive to expand their workforce while investing in the next generation of employees.

What Employers Can Receive

Eligible businesses can receive up to £3,000 for each qualifying recruit, with payments made in stages once the conditions of the grant have been met. The funding is intended to support sustainable employment rather than temporary placements, encouraging businesses to create genuine job opportunities for young people who have been claiming Universal Credit and looking for work for six months or more.

Who Can Apply?

The scheme is open to organisations of all sizes operating in Great Britain, including SMEs and sole traders planning to employ staff. To qualify, businesses must be actively trading, registered with HMRC and successfully complete the eligibility checks carried out by the Department for Work and Pensions.

Jobs created through the programme must:

• Last at least four months.
• Offer a minimum of 25 hours per week.
• Pay at least the applicable National Minimum Wage.
• Be genuine new employment opportunities that do not replace existing roles.
• Provide a safe and suitable working environment.

A Boost for Growing Businesses

For many SMEs, recruitment costs can be a significant barrier to growth. The Youth Jobs Grant helps offset those costs while enabling businesses to develop new talent from the beginning of their careers.

Beyond the immediate financial support, employers also benefit from bringing motivated young people into their workforce, helping to build future skills, strengthen succession planning and improve workforce resilience.

The grant also supports businesses looking to demonstrate their commitment to social value and community impact—an increasingly important consideration when bidding for contracts and working with larger organisations.

Supporting Young People into Work

The Youth Jobs Grant is one element of the Government’s wider strategy to reduce youth unemployment and improve access to employment opportunities. Alongside financial support for employers, eligible young people receive tailored assistance through Jobcentre Plus to help them secure and sustain employment.

With applications now open, SMEs considering recruitment over the coming months may find the scheme offers an opportunity to reduce hiring costs while making a meaningful investment in the UK’s future workforce.

Businesses interested in applying can find full eligibility criteria, guidance and the online application through the Government’s Find a Grant service.