Recruitment incentives for hiring young people in Scotland (2026 guide)

Hiring a young person or an apprentice in Scotland can cost a lot less than you think. Councils, the UK Government and Skills Development Scotland all offer funding, but it varies by area and changes often. This guide explains what is available in 2026, who qualifies and how to apply.

What counts as a recruitment incentive?

A recruitment incentive is money, or free support, that helps an employer take on a new member of staff. In Scotland they come from three main places: your local council, the UK Government’s Department for Work and Pensions (DWP), and Skills Development Scotland (SDS) for apprenticeship training.

Most council schemes are run by Local Employability Partnerships under the Scottish Government’s No One Left Behind approach. That has one big consequence: the grant usually follows the person you hire, not your business address. If your office is in Glasgow but your new starter lives in North Lanarkshire, it’s normally North Lanarkshire’s scheme you apply to.

Schemes open and close throughout the year, often with little notice. We track every one on our Recruitment Incentives page, council by council, and check it monthly.

National schemes every Scottish employer should know

Youth Jobs Grant (DWP)

The Youth Jobs Grant pays employers £3,000 for hiring an eligible young person. It is paid in two parts: £1,800 after 6 weeks and £1,200 after 18 weeks, once DWP has checked earnings through HMRC.

• The young person must be aged 18 to 24, claiming Universal Credit and unemployed for at least 6 months.
• You recruit through Universal Credit and the Jobcentre, not your own candidates.
• The job must be at least 25 hours a week, last at least 4 months and pay at least the National Minimum Wage.
• It can be combined with apprenticeship funding.

No One Left Behind Employer Recruitment Incentives

The Scottish Government’s framework sets the maximum a council can pay from its funding over 12 months for a post paid at the Real Living Wage:

• 10 to 15 hours a week: up to £4,000
• 16 to 20 hours: up to £6,000
• 21 to 29 hours: up to £8,000
• 30 hours or more: up to £10,000

Each council sets its own rules within that framework, and priority usually goes to SMEs, micro businesses and third sector organisations. The person you hire normally needs to be unemployed or facing barriers to work.

Modern Apprenticeship funding (SDS)

A Modern Apprenticeship isn’t a cash grant to the employer, but it takes away most of the cost of training. SDS pays a contribution towards training and assessment directly to the learning provider, and there’s no cost to the apprentice. Enhanced contributions are available for disabled and care-experienced apprentices up to age 29. You pay the apprentice’s wages as normal.

That’s where we come in. Sixth Sense Training delivers funded Modern Apprenticeships in digital applications, digital marketing, creative and digital media, digital technology and business administration, all online and around the job.

Council incentives: some examples

Here’s a snapshot of schemes we confirmed on 16 October 2026. Always check the official page before you recruit, because funding is limited and usually first come, first served.

• Edinburgh: Edinburgh’s Employer Recruitment Incentives pay £4,000 to £10,000 over 52 weeks, depending on hours. Roles must be permanent, pay the Real Living Wage and start by 31 March 2027. Applications close 15 March 2027.
• Glasgow: the Glasgow Futures Employer Recruitment Incentive offers up to £10,000, plus a progression award of up to £1,500 for training, when you hire from the Glasgow Futures candidate pool.
• Highland: HERO, the Highland Employer Recruitment Offer, offers up to £10,000 for new roles of 10 or more hours a week.
• Perth and Kinross: Future Works offers up to £8,000, based on contracted hours, towards wages for new jobs and apprenticeships.
• West Lothian: the Employment Pathway Grant covers 100% of a Real Living Wage salary for up to 3 months, up to £6,552, for businesses with under 250 staff.
• East Dunbartonshire: the all-ages Regional Employer Recruitment Incentive offers up to £7,000.
• Angus: the Participant Recruitment Programme offers up to £6,000 over 52 weeks for up to two employees.
• East Ayrshire: the Recruitment Incentive Grant offers SMEs up to £5,000, including for Modern Apprenticeship posts lasting 52 weeks.
• North Lanarkshire: North Lanarkshire’s Working can pay 50% of the Real Living Wage for 6 months and runs your recruitment for free.
• South Ayrshire: the Employer Recruitment Incentive pays 50% of the Real Living Wage for up to 35 hours a week for 26 weeks.

Several other councils, including Aberdeen City, Fife, Renfrewshire, Dundee and South Lanarkshire, run schemes but don’t publish current amounts. A few, like Argyll and Bute and Scottish Borders, had no scheme we could find. Our council-by-council list flags these with “check current status”.

Incentives aimed at apprentices

Some councils go further and pay towards apprentice wages specifically. Inverclyde runs an Apprenticeship Wage Subsidy Programme for new apprenticeship posts filled by Inverclyde residents, and East Dunbartonshire has offered up to £5,000 for new engineering apprenticeships. These change often, so check current status before you plan around them.

Common conditions to watch for

Almost every scheme comes with rules. The most common are:

1. Apply before the person starts. Most councils won’t fund a job that has already begun.
2. Pay the Real Living Wage. Most council schemes require it, in line with Fair Work First.
3. Create a new or additional post. You can’t usually use a grant to replace an existing employee.
4. Offer a proper contract. Typically a written contract within 2 months, minimum weekly hours and no zero-hours contracts.
5. Hire someone who’s eligible. That usually means an unemployed person facing barriers, living in the council area.

How Sixth Sense Training can help

We help employers across Scotland recruit and train young people. We can write and advertise your vacancy, shortlist candidates, and set up a funded Modern Apprenticeship so your new starter gains a recognised qualification while they work. We’ll also point you towards the incentives you may be able to claim in your area.

Ready to talk? Visit our employer services page or check the latest schemes on our Recruitment Incentives page.

Information correct as of 16 October 2026 from official sources. Schemes can close at short notice, so always confirm with the provider before recruiting.