For many employers, apprenticeships have always been a valuable way to recruit new talent, develop skills and build a stronger workforce for the future. What has changed is the level of Government support now available to help businesses make that investment. From fully funded training for eligible young apprentices to new employer payments and additional support for specific groups, the apprenticeship landscape has changed significantly during 2026.
These changes are designed to make it easier for employers to bring young people into the workplace while helping businesses address skills shortages and develop the talent they need. For employers considering an apprentice, understanding what has changed and which forms of support may apply is more important than ever.
One of the biggest changes is the introduction of fully funded apprenticeship training for eligible apprentices aged 16 to 24. From 1 August 2026, eligible non-levy employers can receive 100% Government funding for apprenticeship training and assessment up to the relevant funding band maximum for apprentices in this age group. The same funding support can also apply to levy-paying employers where there are insufficient funds in their apprenticeship service account, subject to the relevant rules.
This removes one of the main financial barriers that has previously made some businesses hesitant about recruiting apprentices. Instead of having to think about the cost of training alongside recruitment and employment costs, eligible employers can access Government funding towards the full training and assessment cost within the relevant funding band.
However, training funding is only one part of the support now available. Employers may also be able to access direct financial incentives when recruiting eligible apprentices.
From 1 October 2026, eligible non-levy employers recruiting an additional apprentice aged 16 to 24 can receive a £2,000 apprenticeship hiring payment. The payment is designed to support employers with the costs associated with bringing a new apprentice into the business and is available alongside the wider apprenticeship funding system, subject to the relevant eligibility requirements.
This is particularly significant for smaller businesses that may not have traditionally considered apprenticeships because of concerns about the cost or commitment involved in taking on a new member of staff. The combination of funded training and an employer hiring payment can make it much easier to invest in young talent while building a workforce around the needs of the organisation.
There is also an additional £1,000 employer payment available in certain circumstances. Employers can receive this when recruiting eligible apprentices aged 16 to 18, or eligible apprentices aged 19 to 24 who have an Education, Health and Care plan or who have been in care. The payment is designed to provide additional support for employers creating opportunities for young people who may benefit from extra help as they begin their careers.
For employers recruiting Foundation Apprentices, there is another incentive to consider. Eligible employers can receive up to £2,000 when recruiting a Foundation Apprentice, subject to the relevant eligibility requirements. Foundation Apprenticeships provide young people with an opportunity to gain workplace experience and develop the skills and confidence they need to progress into further apprenticeships or sustained employment, creating another route for employers to start developing future talent.
The Government has also introduced the £3,000 Youth Jobs Grant, providing another potential source of support for employers. Eligible employers can receive £3,000 when recruiting an eligible 18 to 24-year-old who has been unemployed and claiming Universal Credit for six months or more. The grant is designed to encourage employers to create opportunities for young people who have been out of work for a sustained period and can be particularly valuable when combined with apprenticeship recruitment.
One of the important things for employers to understand is that these forms of support are not necessarily alternatives to one another. Where the relevant eligibility requirements are met, different payments can be combined. For example, an eligible non-levy employer recruiting a qualifying apprentice may potentially be able to access the £2,000 apprenticeship hiring payment alongside the £3,000 Youth Jobs Grant, creating up to £5,000 in combined employer payments before taking other available support into account.
The exact support available will depend on the apprentice, the employer and the circumstances surrounding the recruitment, but the ability to combine different incentives is one of the most significant developments employers should be aware of.
There is also support specifically designed for care-experienced young people. Eligible care leavers under the age of 25 who start an apprenticeship can receive a £3,000 care leavers’ bursary. Unlike employer incentives, this payment is made directly to the apprentice and is intended to help with the personal costs associated with starting work and training. It can help an apprentice manage expenses such as travel, accommodation and everyday living costs during the early stages of their apprenticeship.
For employers, the bursary is important because it forms part of a wider support system that can help a care-experienced young person make a successful transition into employment. Employers do not receive or administer the bursary, but understanding that this support exists can help businesses create a more inclusive recruitment and onboarding process.
In certain circumstances, employers may also be eligible for the separate £1,000 additional payment when recruiting a care-experienced apprentice aged 19 to 24. This is different from the £3,000 bursary paid to the apprentice and is subject to the relevant eligibility requirements and consent arrangements.
Another financial benefit that employers should consider is National Insurance relief. Employers can benefit from a 0% employer National Insurance rate on qualifying earnings for eligible apprentices under the age of 25, subject to the relevant National Insurance requirements. This is not a grant that employers apply for, but instead reduces the employer National Insurance cost that would otherwise apply to qualifying earnings.
When considered alongside apprenticeship funding and the various employer incentives now available, this can make a meaningful difference to the overall cost of employing an eligible young apprentice. It is another reason why businesses should consider the complete package of support rather than looking at individual incentives in isolation.
Taken together, the changes represent a significant shift in the way apprenticeships are supported. The Government has increased the funding available for young apprentices while introducing a wider range of employer payments aimed at encouraging businesses to recruit and develop young people. For eligible employers, the available support can now include fully funded training, hiring payments, additional payments, Foundation Apprenticeship incentives, the Youth Jobs Grant and National Insurance relief, with different forms of support potentially available alongside one another.
The headline figures are important, but the real opportunity for employers goes beyond the financial support. Apprenticeships allow businesses to recruit people with potential rather than competing solely for candidates who already have years of experience. Employers can develop apprentices around their own systems, processes, culture and customer needs while giving them the opportunity to build valuable skills and experience.
This can be particularly important at a time when many businesses are struggling to recruit experienced staff. Rather than waiting for the perfect candidate to appear, employers can invest in someone who has the right attitude, enthusiasm and willingness to learn and give them the support they need to develop into a valuable member of the team.
Apprenticeships can also support longer-term workforce planning. An apprentice who develops within an organisation can build knowledge of its customers, processes and culture from the beginning. As their skills and confidence grow, they may progress into more senior or specialist roles, creating a pipeline of talent that can support the organisation for years to come.
The challenge for many employers is knowing where to start. With several incentives now available, eligibility can depend on factors such as the apprentice’s age, employment circumstances, the type of apprenticeship, the employer’s levy status and the apprenticeship start date. It can therefore be difficult to know exactly which forms of support apply to a particular vacancy.
This is where Educationwise can help. We provide a completely free recruitment service for employers looking to recruit an apprentice. Whether you already have a candidate in mind or are starting the search from scratch, we can advertise your vacancy, attract suitable candidates and shortlist applicants, helping you find someone with the potential to become a valuable member of your team.
We can also help you understand the apprenticeship funding and incentives that may apply to your circumstances, making the process easier to navigate from the beginning. Our aim is to take away some of the uncertainty around apprenticeship recruitment so that you can focus on finding the right person for your organisation.
The changes to apprenticeship incentives are ultimately about creating more opportunities for employers and young people at the same time. Businesses can access greater support to recruit and develop new talent, while young people gain the opportunity to earn, learn and build valuable workplace experience.
There has never been more Government support available for employers looking to recruit young apprentices. With funded training, new employer incentives, support for specific groups and National Insurance relief available in eligible circumstances, apprenticeships are becoming an increasingly attractive way to build a skilled and sustainable workforce.
If you are considering recruiting an apprentice, now is the time to explore what support your business could access. Educationwise can help you understand the available incentives, find the right apprenticeship programme and use our completely free recruitment service to find the right apprentice for your organisation.
Government funding, incentives and eligibility criteria are subject to change. Please speak to Educationwise for the latest guidance relevant to your circumstances.