GrantRadar

Department for Work and Pensions (DWP)

Youth Jobs Grant

A £3,000 payment from the Department for Work and Pensions to employers in Great Britain, including charities, for each eligible young person (aged 18 to 24, on Universal Credit and out of work for at least 6 months) they hire into a job registered with the scheme. It is an employer recruitment incentive, part of the Youth Guarantee, and is paid in two stages (£1,800 from 6 weeks and £1,200 after 18 weeks) once HMRC earnings data confirm the hours worked. Jobs must be at least 25 hours a week for at least 16 weeks at the minimum wage or above. The scheme opened on 30 June 2026 and runs until it closes to new participants in October 2028.

Apply on the funder’s site
You could get
£3,000
Deadline
744 days left
31 October
Effort
Moderate
full application with documents

Who can apply

  • Employers of any size and sector operating in Great Britain (England, Scotland and Wales), including sole traders, businesses, local authorities and other non-central public sector bodies
  • DWP's grant guidance states that charities are eligible if they meet the other criteria
  • Employers must have traded for at least 6 months before applying and expect to continue, have an active PAYE scheme with HMRC and a Unique Taxpayer Reference (or Corporation Tax UTR), have a D-U-N-S number (free to obtain), and pass DWP's due diligence checks
  • Central government departments, their executive agencies and non-departmental public bodies cannot take part
  • The number of funded employees at any one time depends on the size of the workforce

What it funds

  • A grant of £3,000 per qualifying job outcome when an employer recruits an eligible young person (18 to 24, on Universal Credit and out of work for at least 6 months) into a vacancy accepted by the scheme
  • The job must:
  • Be paid work of at least 25 hours a week lasting at least 16 weeks
  • Pay at least the National Minimum Wage or National Living Wage
  • Be comparable to roles offered outside the scheme
  • Involve no more than 50% online training

The FAQs say the grant should be used on costs arising from hiring and employing the young person, such as wages, National Insurance, pension contributions, recruitment, administration, training and management.

£1,800 is paid after 6 weeks if the employee has worked at least 50 hours (rechecked at week 10 for 100 hours), and £1,200 after 18 weeks if they have worked at least 300 hours (rechecked at week 22).

What it will not fund

  • Central government departments, their executive agencies and non-departmental public bodies (as employers)
  • Employers that have traded for less than 6 months or are not registered with HMRC with a PAYE scheme
  • Jobs that displace existing employees, apprentices or contractors
  • Jobs of fewer than 25 hours a week or lasting less than 16 weeks
  • Roles with more than 50% online training content
  • Young people who do not meet the eligibility criteria, or who are eligible for the Jobs Guarantee instead
  • People hired outside the scheme or recruited before their vacancy was accepted
  • Costs already funded by DWP, any Crown body or local government body
  • More funded employees than the size limits allow (1 at a time for 0 to 3 employees, 2 for 4 to 9 employees, no more than 20% of the workforce for 10 or more employees)

How to apply

  1. Check that your organisation (trading for at least 6 months, PAYE scheme, UTR, D-U-N-S number) and the job (at least 25 hours a week for 16 weeks or more, at the minimum wage or above) meet the scheme rules
  2. Select 'Start new application' on the Find a Grant page, create an account and complete the online employer application (about 20 minutes), accepting the terms and conditions
  3. DWP carries out due diligence checks and aims to email you within 10 working days; if approved you receive an employer reference number
  4. Email a vacancy form for each job to srt.youthjobsgrantteam@dwp.gov.uk; DWP aims to respond within 5 working days and gives each accepted vacancy a unique number
  5. Jobcentre Plus work coaches match eligible young people to the vacancy
  6. Submit a pre-start form before the young person starts work
  7. Pay the young person through PAYE; DWP checks HMRC Real Time Information and pays £1,800 after 6 weeks and £1,200 after 18 weeks if the hours thresholds are met

Do not recruit before the vacancy is accepted, or the job will not qualify.

DWP will not accept payslips; payment depends only on the earnings data you send to HMRC.

If a vacancy is unfilled after 8 weeks, DWP will discuss next steps with you. The government can end or change the scheme, aiming to give 4 weeks' notice.

Have ready

  • Online employer application with legal name, organisation type, HMRC-registered address and Charity Commission and/or Companies House number where applicable
  • PAYE reference, UTR or Corporation Tax UTR, and D-U-N-S number
  • Bank details for payment
  • Contact details for the recruitment lead and a legally appointed director (or equivalent)
  • Vacancy form for each job
  • Pre-start form for each young person before they start

There are no document uploads for the initial application; payments are verified through HMRC Real Time Information, not payslips.

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