Recruiting the right people has become one of the biggest challenges facing businesses. Competition for experienced candidates remains high, skills shortages continue to affect employers across a wide range of industries and recruitment can take significant time and resources. At the same time, businesses need to keep developing the skills of their workforce if they want to grow and remain competitive.
For employers considering how to build their team, apprenticeships provide a practical way to bring new talent into the organisation while developing people around the needs of the business. Apprentices gain real workplace experience, develop professional skills and work towards a recognised qualification, while employers have the opportunity to build a workforce that grows alongside the organisation.
Government support can make this opportunity even more accessible. In 2026, significant changes to apprenticeship funding and employer incentives have created more support for businesses recruiting young apprentices, particularly those aged 16 to 24. Depending on the apprentice, the employer and the apprenticeship being delivered, businesses may be able to access fully funded training, employer payments and other financial support.
One of the biggest changes is that, from 1 August 2026, the Government can fully fund apprenticeship training and assessment for eligible apprentices aged 16 to 24, up to the relevant funding band maximum. This applies to both non-levy employers and levy-paying employers that have exhausted their available funds, subject to the funding rules. For employers, this removes one of the biggest financial barriers associated with developing new talent.
This means businesses can recruit people with potential rather than focusing exclusively on candidates who already have years of experience. Instead of competing for experienced professionals in an increasingly competitive recruitment market, employers can bring motivated individuals into the organisation and give them the opportunity to develop the skills they actually need within their role.
There is also additional financial support available when recruiting eligible young apprentices. Employers can receive a £1,000 additional payment when taking on an apprentice aged 16 to 18, or an eligible apprentice aged 19 to 24 who has been in care or has an Education, Health and Care plan. The payment is designed to help employers with the additional costs associated with supporting these apprentices in the workplace.
From 1 October 2026, eligible non-levy employers may also be able to receive a £2,000 hiring payment when recruiting a new apprentice aged 16 to 24. The payment is subject to eligibility requirements, including conditions around the apprentice’s start date and employment. For smaller businesses and other non-levy employers, this provides additional support when bringing new talent into the team.
Foundation Apprenticeships provide another opportunity for employers to develop young talent. Eligible employers can receive an incentive of up to £2,000 when recruiting a Foundation Apprentice, with eligibility depending on the apprentice’s age and circumstances. Foundation Apprenticeships are designed to help young people gain valuable workplace experience and develop the skills needed to progress into further apprenticeship training and employment.
There is also a £3,000 Youth Jobs Grant available to employers recruiting eligible young people aged 18 to 24 who have been unemployed and claiming Universal Credit for six months or more. Unlike some apprenticeship payments, this grant is available to employers of all sizes, subject to the relevant eligibility requirements.
The important thing for employers to understand is that these forms of support do not necessarily operate in isolation. Eligible employers can potentially access more than one payment for the same apprentice, alongside funded apprenticeship training. The exact combination will depend on the apprentice, the employer and the apprenticeship being delivered, so it is important to check the current funding rules before making financial assumptions.
There can also be wider financial benefits when recruiting apprentices under the age of 25. Employers will not usually pay secondary employer National Insurance contributions for qualifying apprentices under 25, subject to the relevant National Insurance rules. This can further reduce the overall employment costs associated with recruiting young talent.
However, Government support is only one part of the reason businesses should consider apprenticeships. The real value comes from the people you develop. An apprentice learns your systems, understands your processes and becomes familiar with your organisation’s culture from the beginning. Rather than bringing in someone who has developed their skills elsewhere and then adapting them to your business, you have the opportunity to develop talent around your own needs.
This can be particularly valuable for businesses struggling to recruit experienced candidates. Instead of waiting for the perfect person to become available, you can recruit for attitude, potential and willingness to learn. The apprenticeship provides a structured framework for developing the technical knowledge, professional behaviours and practical skills required for the role.
Apprenticeships can also support your wider workforce strategy. An apprentice who starts in an entry-level position can develop into a skilled team member and potentially progress into more senior responsibilities over time. This creates opportunities for succession planning and can reduce the need to rely solely on external recruitment whenever your organisation needs to fill a more advanced role.
The benefits are not limited to new recruits either. Apprenticeships can also be used to develop existing employees, allowing businesses to strengthen the skills of people who are already familiar with the organisation. Whether you need to develop future managers, strengthen administration, build customer service capability or improve your marketing and digital skills, apprenticeship programmes can form part of a longer-term approach to workforce development. Apprenticeships are available across a wide range of roles and levels, allowing employers to develop both new and existing talent.
For many employers, one of the biggest challenges is knowing where to find the right apprentice. It is easy to assume that you need to have a candidate ready before you can start, but this does not have to be the case. At Educationwise, we offer a free apprenticeship recruitment service to help employers find suitable candidates for their vacancies.
Our team can help advertise your apprenticeship vacancy, attract potential applicants and shortlist candidates, helping to take some of the time and administration out of the recruitment process. This means you can focus on finding the right person for your organisation without having to manage every stage of recruitment alone.
We can also help employers understand the apprenticeship funding and incentives that may apply to their circumstances. With several different forms of Government support now available, understanding what your business could access can make it easier to plan your recruitment and workforce development strategy.
Ultimately, Government support is not about making businesses recruit apprentices simply because funding is available. It is about making it easier for employers to invest in people who can contribute to the organisation now while developing the skills they will need in the future. Apprenticeships give businesses the opportunity to build talent from within, address skills gaps and create a workforce that understands the organisation from the inside out.
For employers looking to grow their team, 2026 has brought significant changes to the apprenticeship funding landscape. Fully funded training for eligible 16 to 24-year-olds, the new £2,000 hiring payment for eligible non-levy employers, the £1,000 additional payment, Foundation Apprenticeship incentives, the Youth Jobs Grant and National Insurance benefits can all form part of the wider support available, depending on eligibility.
If you are considering recruiting an apprentice, now is a good time to understand what your business could access and how an apprenticeship could support your wider workforce plans. Educationwise can help you explore the apprenticeship programmes available, understand the funding and incentives that may apply and use our completely free recruitment service to help you find the right person for your organisation.
Government apprenticeship funding, incentives and eligibility criteria are subject to change. The information in this article relates to apprenticeship funding in England and is intended as general guidance. Please check the latest Government guidance or speak to Educationwise for the most up-to-date information relevant to your organisation.