Small businesses in England can now get £2,000 when they take on a young apprentice, under a new government scheme designed to help more young people start skilled careers.

The scheme supports non-levy paying employers, which typically means smaller businesses. The payment can help cover the costs of employing an apprentice, including equipment, travel and uniforms.

And businesses don't need to fill in an application form.

How the £2,000 payment works

If your business qualifies, your apprenticeship training provider will identify you as eligible and pass the money on to you.

You'll receive the £2,000 in two instalments:

• £1,000 after the apprentice completes their first 90 days

• Another £1,000 after one year, or after 242 days for shorter and foundation apprenticeships

Your apprentice needs to stay employed by your business when each payment falls due.

You can use the money to cover costs linked to employing your apprentice, such as work equipment, travel or a uniform.

Who can get the payment?

The scheme targets small businesses that take on young apprentices.

Your apprentice must meet one of these age requirements when they start their apprenticeship training:

• They are 16 to 24 years old

• They are 15 years old and turn 16 between the last Friday in June and 31 August

They must also start their job with you no more than 90 days before their apprenticeship training begins.

You could get more than £2,000 in support

The £2,000 payment can sit alongside other support.

The Federation of Small Businesses (FSB) says businesses can combine the new incentive with other support worth up to £6,000. Depending on the business and apprentice, that could take the total support package to £8,000 per apprentice.

The FSB says the extra funding can help small firms manage the additional costs that come with recruiting and training an apprentice.

If you've considered taking on an apprentice but worried about the cost, it's worth checking which funding you could access.

A new website aims to make apprenticeships simpler

The government has also launched an updated Apprenticeships.gov.uk website to help businesses through the apprenticeship process.

Young people can also use the website to look for apprenticeship opportunities based on their interests and follow a step-by-step guide to applying.

What does this mean for small businesses?

Taking on an apprentice means more than filling a vacancy.

Your business needs to give someone training, supervision and support while they learn the role. That takes time and money, which can make apprenticeships harder for smaller firms to offer.

The new £2,000 payment can help reduce some of those costs.

If you're already looking to hire, an apprenticeship could give you a way to develop someone from the start of their career while building the skills your business needs.