For employers looking to recruit new talent, apprenticeships can offer far more than a route into training. They provide an opportunity to bring motivated people into your organisation, develop their skills around the needs of your business and build a stronger workforce for the future. With significant Government apprenticeship funding and a growing range of employer incentives now available, understanding what support your business could access has never been more important.
The challenge is that many employers still assume apprenticeships are expensive or that Government funding is only available to large organisations. In reality, the current apprenticeship funding system provides support for employers of different sizes, with additional incentives available depending on the apprentice you recruit and your circumstances. If you have been considering taking on an apprentice but are unsure about the financial side, it is worth looking at the full range of support available rather than focusing on one incentive alone.
From 1 August 2026, eligible apprentices aged 16 to 24 can have 100% of their apprenticeship training and assessment funded by the Government, up to the relevant funding band maximum. This applies to both levy-paying and non-levy employers, subject to the funding rules. For businesses looking to recruit young people, this can remove one of the biggest financial barriers associated with apprenticeship recruitment.
The funding available covers the cost of training and assessment up to the relevant funding band maximum, meaning employers should still check the funding band for the apprenticeship they are considering. If the agreed training and assessment cost is higher than the funding band maximum, the employer is responsible for paying the difference. However, where the apprenticeship is delivered within the funding band, eligible employers can access significant Government support towards the cost of developing their apprentice.
For apprentices aged 25 and over, different funding arrangements apply. Non-levy employers will generally contribute 5% towards training and assessment costs, with the Government funding the remaining 95% up to the funding band maximum. Levy-paying employers can use funds in their apprenticeship service account, with different contribution arrangements applying where those funds have been used. This means the funding available can vary depending on both the age of the apprentice and how your organisation accesses apprenticeship funding.
Training funding is only one part of the support available. Eligible employers may also be able to access additional payments when recruiting certain apprentices, and these can potentially be combined for the same learner where the relevant criteria are met. The official Apprenticeships website currently states that non-levy employers can receive up to £8,000 in employer payments, while levy-paying employers can receive up to £6,000, depending on eligibility.
One of the key changes for employers is the introduction of a £2,000 apprenticeship hiring payment for eligible non-levy employers recruiting new apprentices aged 16 to 24. The payment is available from October 2026, subject to the relevant eligibility criteria and start-date requirements. For businesses that do not pay the apprenticeship levy, this provides another potential source of financial support when bringing a young apprentice into the organisation.
There is also a £1,000 additional payment available to employers when recruiting eligible apprentices aged 16 to 18, or eligible apprentices aged 19 to 24 who have been in care or have an Education, Health and Care plan. This payment is intended to help with additional costs associated with supporting an apprentice in the workplace and can be used for employment-related costs such as equipment, travel or uniform.
Employers recruiting eligible Foundation Apprentices may also be able to access an incentive of up to £2,000. Foundation Apprenticeships provide young people with the opportunity to develop workplace skills and experience and can create a pathway into further apprenticeship opportunities and employment. For eligible employers, this provides another opportunity to bring new talent into the organisation while accessing Government support.
Another important source of support is the £3,000 Youth Jobs Grant. Eligible employers can receive up to £3,000 when recruiting a young person aged 18 to 24 who has been out of work and claiming Universal Credit for six months or more, subject to the scheme conditions. The grant is paid in stages by the Department for Work and Pensions and is available to employers of different sizes.
What makes the current funding landscape particularly interesting for employers is that these payments can potentially be combined. The official Government guidance confirms that employers can claim more than one of the available employer payments where eligibility requirements are met. This means an eligible employer could potentially access multiple incentives for the same apprentice, alongside Government-funded apprenticeship training.
This is why it is important not to look at one apprenticeship incentive in isolation. An employer might initially see the £2,000 hiring payment, for example, without realising that the apprentice could also qualify for another employer payment or that the training itself could be fully Government funded. The exact combination will depend on the apprentice, the employer and the apprenticeship being delivered, so checking eligibility before recruiting is essential.
There can also be additional financial benefits for employers recruiting apprentices under the age of 25. Employers will not usually pay secondary Class 1 National Insurance contributions for qualifying apprentices under 25, subject to the relevant rules. For 2026–27, a 0% secondary National Insurance rate applies to qualifying earnings up to the Apprentice Upper Secondary Threshold of £50,270 a year.
When all of these forms of support are considered together, the overall picture can be very different from the traditional perception of apprenticeship recruitment. Government funding can help cover training and assessment, employer incentives can provide additional financial support and National Insurance relief can reduce employment costs for qualifying apprentices under 25.
However, the financial support should not be the only reason your business considers an apprenticeship. The real value comes from the opportunity to recruit for potential and develop someone around the needs of your organisation. Instead of competing for experienced candidates who already have established skills and ways of working, you can bring in someone who is motivated to learn and help them develop the knowledge, skills and behaviours your business needs.
Apprenticeships can therefore form an important part of a wider recruitment and workforce development strategy. They can help businesses address skills gaps, develop existing employees, strengthen succession planning and build a pipeline of future talent. An apprentice can learn your systems, understand your organisation and develop their skills through real workplace experience, creating value for both the individual and the business.
For employers, this can be particularly valuable when recruitment is becoming increasingly competitive. Rather than waiting for the perfect experienced candidate to become available, you can consider what potential looks like within your organisation and create an apprenticeship opportunity around the skills and responsibilities you need.
The current Government support also means apprenticeships are not limited to large businesses with significant recruitment or training budgets. Smaller and non-levy employers can access Government funding and, depending on eligibility, additional employer incentives. This makes apprenticeship recruitment an option worth considering for businesses that may previously have assumed it was financially out of reach.
Of course, accessing apprenticeship funding involves more than simply recruiting an apprentice. Employers have responsibilities too. You must employ and pay your apprentice for their working hours and training, provide appropriate support and ensure they receive the required off-the-job training. You will also need to work with an approved training provider and use the apprenticeship service to manage relevant funding and apprenticeship arrangements.
This is where working with the right training provider can make a real difference. Understanding Government apprenticeship funding, checking eligibility and navigating the recruitment process can feel complicated, particularly if you are taking on an apprentice for the first time.
At Educationwise, we offer a free apprenticeship recruitment service to help employers find the right person for their vacancy. We can advertise your apprenticeship opportunity, attract suitable candidates and shortlist applicants, helping to reduce the time and pressure involved in recruitment. We can also help you understand the apprenticeship options available and explain the funding and incentives that may apply to your organisation.
This means you do not need to have a candidate already in mind before exploring apprenticeship recruitment. Whether you are looking to recruit someone new, develop an existing employee or build a wider apprenticeship programme, we can support you through the process and help you identify the right route for your business.
Government apprenticeship funding has changed significantly, and there is now more support available for eligible employers than many businesses realise. With fully funded training available for eligible apprentices aged 16 to 24, alongside employer incentives, potential National Insurance savings and other forms of Government support, it is worth taking the time to understand what your organisation could access.
If your business is considering recruiting an apprentice, do not assume that the first incentive you find is the only support available. The different funding streams can potentially work together, and understanding the full picture could make a significant difference to your recruitment plans.
At Educationwise, we can help you understand the apprenticeship funding and incentives available, find the right apprenticeship programme and use our completely free recruitment service to find suitable candidates for your business. If you are ready to explore what your organisation could access, speak to Educationwise today and take the next step towards bringing new talent into your team.
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.