Businesses will be able to claim £3,000 for each new apprentice they take on as part of a Government initiative from Tuesday (June 1).
Employers can claim for each new apprentice hired from April 1 until September 30, with backdated payments available.
The scheme was announced by Chancellor Rishi Sunak back in March as part of the annual Budget.
Money can be spent at the employer’s discretion, and could be used to cover travel or uniform costs for the apprentice.
Ministers are said to be hoping the cash boost will boost the numbers of employers taking on apprentices, helping the labour market recover post-Covid.
Previously, businesses in England were given £2,000 for every new apprentice they took on under the age of 25 and £1,500 for those over 25. The new system will pay companies £3,000 for every apprentice regardless of age.
Between the financial years 2018-19 and 2019-20 data shows the number of apprentices fell by around 20,000 due to coronavirus.
Sunak said of the scheme: “Young people have been hit especially hard by the crisis, which is why our Plan for Jobs, launched last year, is focused on helping them get the skills they need to get the jobs they want.
“By boosting the cash incentives for our apprenticeship scheme we’re improving opportunities for young people to stay in and find work – this could not be more important in our economy’s recovery.”
Gillian Keegan, a junior education minister and former apprentice, said: "Apprenticeships are a fantastic way for employers large and small to grow their businesses and will continue to play a key role in our economic recovery.
"This cash boost will help even more employers to invest in their future workforce, creating more high-quality apprenticeship opportunities so businesses have the skilled talent pipeline they need to thrive."
Additional reporting by PA.