Fully Funded Apprenticeship Training: What Employers Need to Know

At A Glance

Who is eligible?
From 1 August 2026, eligible apprentices aged 16 to 24 can have their apprenticeship training and assessment fully Government funded, up to the relevant funding band maximum. This applies to eligible apprentices regardless of whether their employer pays the Apprenticeship Levy, subject to the relevant funding rules.

How much funding is available?
The Government can cover 100% of eligible apprenticeship training and assessment costs up to the relevant funding band maximum, meaning there is no apprenticeship training cost for the employer where the apprentice and programme meet the eligibility requirements. This funding sits alongside other Government incentives, which eligible employers may also be able to access and stack, including the £2,000 hiring payment, £1,000 employer payment, Foundation Apprenticeship incentives and £3,000 Youth Jobs Grant.

Why should you hire an apprentice?
Fully funded apprenticeship training makes it easier for businesses to recruit someone with potential and develop their skills around the needs of the organisation, without paying the apprenticeship training and assessment costs themselves. Apprentices gain valuable workplace experience and a recognised qualification while contributing to the business, helping employers address skills gaps, build future talent and strengthen their workforce. When fully funded training is combined with other available incentives, the overall cost of recruiting and developing an apprentice can be significantly reduced.

For many businesses, the biggest barrier to recruiting an apprentice has traditionally been the cost of training. While employers have long recognised the benefits of apprenticeships, the financial commitment involved in developing a new employee could sometimes make businesses hesitant to get started. From 1 August 2026, however, the picture has changed significantly. Apprenticeship training for eligible apprentices aged 16 to 24 is now fully government funded, meaning employers can access apprenticeship training without paying the training and assessment costs, up to the relevant funding band maximum.

This makes apprenticeships an even more attractive option for employers looking to recruit new talent, develop their workforce and address skills shortages without taking on the full cost of professional training themselves.

What does fully funded apprenticeship training mean?

Fully funded apprenticeship training means that, for eligible apprentices aged 16 to 24, the Government covers the cost of apprenticeship training and assessment up to the maximum funding band for the apprenticeship standard.

For employers, this removes one of the biggest financial considerations when recruiting an apprentice. Instead of having to budget for the cost of training and developing a young employee, businesses can access funded apprenticeship training while the apprentice gains valuable skills and workplace experience.

The apprentice is employed by your business and works as part of your team, while their apprenticeship training is delivered alongside their normal role. This allows them to develop practical skills that can be applied directly within the workplace, creating value for the business throughout the programme.

It is important to remember that fully funded training does not mean an apprentice is free to employ. Employers are still responsible for paying the apprentice’s wages and meeting their normal employment responsibilities. However, removing the training and assessment cost can make a significant difference to the overall investment involved in recruiting and developing a new member of staff.

Why is fully funded training such a big opportunity for employers?

Recruitment and workforce development can be expensive. Businesses need to consider recruitment costs, salaries, onboarding, training and the time required to help new employees develop their skills.

Apprenticeships already provide a structured way to combine employment and training, but fully funded apprenticeship training makes the model even more accessible. Employers can recruit someone with the potential to succeed and provide them with high-quality training without having to pay the apprenticeship training costs themselves, where the funding rules and eligibility requirements are met.

This is particularly valuable for businesses that may not have large training budgets or dedicated internal training teams. Rather than relying entirely on expensive external courses or expecting employees to develop their skills independently, employers can use an apprenticeship to build capability around the needs of the organisation.

For growing businesses, this can make it easier to invest in people earlier and build the workforce they need for the future.

Apprenticeships allow you to recruit for potential, not just experience

One of the biggest challenges facing employers is finding candidates who already have the exact skills and experience they need. Experienced candidates can be difficult to attract, particularly in sectors where there are already significant skills shortages. Businesses may find themselves competing with other employers for the same small pool of applicants, often driving up recruitment costs in the process.

Apprenticeships provide a different approach. Instead of looking for someone who already knows everything, employers can recruit someone with the right attitude, enthusiasm and potential, then support their development through a structured apprenticeship programme.

This allows businesses to shape employees around their own systems, processes and workplace culture from the beginning. The apprentice gains valuable qualifications and experience, while the employer develops someone with skills that are directly relevant to the organisation.

Fully funded apprenticeship training makes this approach even more appealing because eligible employers can access the training without paying the associated training and assessment costs, up to the relevant funding band maximum.

What other Government support is available?

Fully funded apprenticeship training is one of the biggest changes to apprenticeship funding, but it is not the only form of support currently available to employers.

Eligible non-levy employers recruiting an additional apprentice aged 16 to 24 may be able to access a £2,000 hiring payment for apprentices starting their apprenticeship from 1 October 2026. This provides additional financial support towards the cost of recruiting a new apprentice.

There is also an additional £1,000 employer payment available in certain circumstances when recruiting apprentices aged 16 to 18, or those aged 19 to 24 who are care leavers or have an Education, Health and Care Plan.

Employers may also be able to access the £3,000 Youth Jobs Grant when recruiting an eligible 18 to 24-year-old who has been claiming Universal Credit for six months or more. Where the relevant eligibility criteria are met, this can be combined with the apprenticeship hiring payment.

There is also support available for eligible Foundation Apprentices, with employers potentially able to receive a payment of up to £2,000.

These incentives can make apprenticeship recruitment even more attractive, particularly when combined with fully funded training.

The financial benefits go beyond training

The cost of apprenticeship training is only one part of the wider financial picture. Employers recruiting eligible apprentices under the age of 25 can also benefit from employer National Insurance relief on qualifying earnings, reducing the employment costs associated with taking on a young apprentice.

When combined with fully funded apprenticeship training and any applicable employer incentives, the overall cost of recruiting and developing a young apprentice can be significantly lower than many businesses realise. This is why it is worth looking at the complete funding picture rather than considering apprenticeship training costs in isolation.

Every business will have different circumstances, and eligibility for individual incentives depends on factors such as the apprentice’s age, the type of apprenticeship, the employer’s circumstances and the relevant funding rules. Understanding what your organisation can access is therefore an important part of the recruitment process.

What does the funding mean for smaller businesses?

For smaller businesses, access to fully funded apprenticeship training could be particularly valuable.

Smaller employers often want to invest in staff development but may not have the same training budgets or resources available to larger organisations. Recruiting an apprentice provides a way to develop new talent while benefiting from structured external training and support.

Rather than paying for a series of separate training courses, businesses can develop an employee through one structured apprenticeship programme that combines workplace experience with formal learning. This can help smaller organisations build skills internally without having to compete solely for experienced candidates.

It also creates an opportunity to develop someone who can grow with the business. As the apprentice gains confidence and experience, they can take on greater responsibility and potentially progress into more senior roles in the future.

Apprenticeships are an investment in your future workforce

Although fully funded apprenticeship training makes the financial case stronger, the benefits of apprenticeships go far beyond funding. An apprentice becomes part of your organisation from day one. They learn how your business operates, develop relationships with colleagues and customers and gain an understanding of your culture and expectations. Over time, this can create highly capable employees who are invested in the organisation and understand how their role contributes to its wider goals.

For employers, this can support retention, succession planning and long-term workforce development. Instead of constantly recruiting to replace people who leave, businesses can create their own pipeline of skilled employees who are already familiar with the organisation.

This is one of the reasons apprenticeships should not simply be viewed as a way to fill entry-level vacancies. They can form an important part of a wider recruitment and talent development strategy.

Finding the right apprentice doesn’t have to be difficult

Even with fully funded apprenticeship training available, some employers are still unsure where to begin. Finding the right candidate can feel like another task to add to an already busy workload, particularly for smaller businesses that do not have dedicated recruitment teams.

At Educationwise, we offer a completely free recruitment service to help employers find the right apprentice for their organisation. We can advertise your vacancy, attract candidates, shortlist suitable applicants and support you throughout the recruitment process. This means you do not have to navigate apprenticeship recruitment alone.

We can also help you understand the funding and incentives that may be available to your business, so you can make an informed decision about recruiting an apprentice and understand the support you could potentially access.

What could a fully funded apprenticeship mean for your business?

For employers, the introduction of fully funded apprenticeship training for eligible 16 to 24-year-olds represents a significant opportunity. You can recruit someone with potential, develop their skills through a structured apprenticeship and benefit from Government-funded training and assessment, while they gain valuable workplace experience and a recognised qualification. When additional incentives and employer National Insurance relief are also available, the overall business case becomes even stronger.

The most important question is no longer simply whether your business can afford to train an apprentice. It is whether your organisation could benefit from developing someone who grows with your business.

Whether you are looking to strengthen your administration team, develop future leaders, improve your marketing capability, recruit into customer service or build skills within another area of your organisation, apprenticeships provide a practical way to develop the people you need. And with fully funded apprenticeship training now available for eligible apprentices aged 16 to 24, there has rarely been a better time to explore what an apprenticeship could offer your business.

If you are considering recruiting an apprentice, Educationwise can help you understand the funding available, identify the right apprenticeship and find suitable candidates through our free recruitment service.

Get in touch with Educationwise today to find out how fully funded apprenticeship training could help your business recruit, develop and retain its next generation of talent.

Government funding, incentives and eligibility criteria are subject to change. Please speak to Educationwise for the latest guidance relevant to your organisation.