For employers looking to grow their teams, apprenticeships offer an effective way to bring new talent into the business while developing the skills needed for the future. In 2026, the financial support available has increased significantly, making apprenticeship recruitment an attractive option for businesses across a wide range of sectors.
The amount an employer can receive depends on several factors, including whether the business pays the apprenticeship levy, the apprentice’s age and circumstances, the type of apprenticeship being delivered and whether the apprentice meets the eligibility criteria for specific incentives. For eligible employers that do not pay the apprenticeship levy, Government guidance states that up to £8,000 in employer payments may be available when hiring a young apprentice. Eligible levy-paying employers may be able to access up to £6,000. These payments can be combined where the relevant criteria are met.
Employer payments are only part of the support available. Eligible apprentices aged 16 to 24 can also have their apprenticeship training and assessment fully funded by the Government, up to the relevant funding band maximum. Employers may also benefit from National Insurance relief when employing qualifying apprentices under 25. Together, these measures can significantly reduce the financial barriers associated with recruiting and developing new talent.
One of the biggest changes for employers in 2026 is the expansion of fully funded apprenticeship training for young people. From 1 August 2026, the Government can pay 100% of apprenticeship training and assessment costs, up to the relevant funding band maximum, for eligible apprentices aged 16 to 24. This applies whether or not the employer pays the apprenticeship levy, subject to the funding rules.
Eligible employers therefore do not have to contribute towards the cost of apprenticeship training and assessment within the relevant funding band. If the agreed training and assessment price exceeds the funding band maximum, the employer is responsible for paying the difference.
For businesses considering apprenticeship recruitment, this removes one of the biggest financial considerations associated with training a new employee. Rather than paying for the apprentice’s training, employers can focus their investment on providing a supportive workplace, meaningful responsibilities, mentoring and the practical experience the apprentice needs to develop.
From 1 October 2026, eligible non-levy employers can receive a £2,000 hiring payment when recruiting a new apprentice aged 16 to 24, subject to the relevant eligibility criteria. The payment is designed to help employers cover some of the costs associated with bringing a new apprentice into the business.
The hiring payment is separate from apprenticeship training funding. This means an eligible employer could potentially receive the £2,000 payment while also having the apprentice’s training and assessment fully funded.
For smaller businesses that do not pay the apprenticeship levy, this provides another opportunity to bring young talent into the team while accessing additional Government support. The payment may be particularly valuable for employers that have previously been unsure whether they had the resources to recruit an apprentice.
Employers can also receive an additional £1,000 when recruiting certain eligible apprentices. This applies to apprentices aged 16 to 18, as well as eligible apprentices aged 19 to 24 who have an Education, Health and Care plan or have been in care.
The payment is designed to help employers with the additional costs associated with supporting eligible apprentices in the workplace. It is paid in two instalments, with the training provider claiming the funding and passing the employer payment on where the relevant criteria are met.
This support can sit alongside apprenticeship training funding and other eligible employer incentives. Businesses should therefore consider the full range of support available rather than looking at individual payments in isolation.
Foundation Apprenticeships provide another route for employers looking to bring young people into the workplace and help them develop valuable skills and experience. Eligible employers can receive an incentive of up to £2,000 when recruiting a qualifying Foundation Apprentice.
The incentive is available for eligible Foundation Apprentices aged 16 to 21, as well as certain apprentices aged 22 to 24 who have an Education, Health and Care plan, have been in care, or are in prison or leaving prison.
Foundation Apprenticeships can be particularly valuable for employers that want to support young people at an earlier stage of their career while creating a pathway into further apprenticeship training and long-term employment. The incentive provides additional financial support while the employer gives the apprentice the opportunity to gain meaningful workplace experience.
The Youth Jobs Grant provides another significant source of financial support for eligible employers. Businesses can receive £3,000 when recruiting an eligible young person aged 18 to 24 who has been out of work and claiming Universal Credit for six months or more, subject to the relevant eligibility requirements.
The grant is available to employers of all sizes and can be particularly valuable for businesses looking to recruit young people who have experienced a longer period away from employment.
The Youth Jobs Grant can be combined with other eligible apprenticeship payments. Where the criteria are met, an employer may be able to receive the £3,000 Youth Jobs Grant alongside the £2,000 apprenticeship hiring payment, providing up to £5,000 in combined employer payments for the same apprentice before considering other eligible support.
The exact amount an employer can receive depends on the individual apprentice and the circumstances of the business. Employers should always check the latest eligibility requirements before making a recruitment decision.
There is no single amount that every employer will receive when hiring an apprentice. Instead, the Government has created a package of payments that may apply depending on the apprentice and employer.
For non-levy employers, current Government guidance states that up to £8,000 in employer payments may be available when hiring an eligible young apprentice. These payments can include the £2,000 apprenticeship hiring payment, the £3,000 Youth Jobs Grant, the £1,000 Additional Payment and the £2,000 Foundation Apprenticeship incentive, where the relevant eligibility criteria are met.
Levy-paying employers may be able to access up to £6,000 in employer payments, depending on the apprentice and the incentives they qualify for. The fact that different payments can be combined is an important part of the current apprenticeship funding landscape and means employers should consider all available support before deciding how to recruit.
These employer payments are separate from the cost of apprenticeship training. Eligible apprentices aged 16 to 24 can have their training and assessment fully funded up to the relevant funding band maximum, meaning the total value of Government support can be considerably greater than the headline employer payment alone.
There is also a financial benefit that does not take the form of a direct payment. Employers can benefit from National Insurance relief when employing qualifying apprentices under the age of 25.
Eligible apprentices under 25 can be subject to a 0% employer National Insurance rate on qualifying earnings. This means employers will not usually pay secondary National Insurance contributions on those earnings, subject to the relevant rules.
This can provide an additional saving over the course of the apprentice’s employment and sits alongside the wider apprenticeship funding and employer incentives available.
Unlike hiring payments, National Insurance relief is not money paid directly to the employer. Instead, it reduces the employer National Insurance contributions that would otherwise be due on qualifying earnings.
The Government also provides financial support directly to eligible care leavers starting an apprenticeship. Apprentices who are under 25 when they start and meet the relevant eligibility criteria can receive a £3,000 care leavers’ bursary, paid through their training provider.
This is not an employer payment, but it is still important for businesses to understand when recruiting young apprentices. The bursary is designed to help with the personal costs associated with starting an apprenticeship and can provide additional financial security for eligible young people during the early stages of their career.
Where the apprentice is eligible and consents to their care-experienced status being shared, the employer may also qualify for the separate £1,000 Additional Payment.
The different forms of apprenticeship support do not necessarily operate independently. The Government confirms that employers can claim more than one available payment where the relevant eligibility criteria are met.
For example, an eligible non-levy employer could potentially benefit from the £2,000 hiring payment and the £3,000 Youth Jobs Grant for the same apprentice. Other payments may also apply depending on the apprentice’s age and circumstances.
Employers should therefore consider the full funding picture rather than focusing on one incentive. Fully funded training, employer payments and National Insurance relief can all contribute to making apprenticeship recruitment more accessible.
Eligibility is not automatic. Employers need to meet the relevant conditions for each payment, and some incentives have specific requirements relating to the apprentice’s age, circumstances, employment status and start date.
Although financial incentives are important, they should not be the only reason an employer recruits an apprentice. The real long-term value comes from developing people who can grow alongside the organisation.
Apprenticeships allow employers to recruit for potential rather than relying entirely on previous experience. An apprentice can learn your systems, understand your customers, develop relationships across the organisation and build the skills your business genuinely needs.
This can be particularly valuable when experienced candidates are difficult to find. Instead of competing for the same pool of skilled workers, businesses can bring in motivated people who are willing to learn and develop them within the organisation.
Apprenticeships can also support retention and succession planning. As apprentices gain experience, they can take on greater responsibility and progress into more senior, specialist or management roles. This creates a stronger pipeline of future talent and helps businesses build capability from within.
The financial support available in 2026 makes that investment more accessible for eligible employers.
Understanding apprenticeship funding is only one part of the recruitment process. Finding the right person can be just as important, particularly for employers recruiting an apprentice for the first time.
At Educationwise, we offer a completely free recruitment service to help employers find suitable apprenticeship candidates. We can advertise your vacancy, attract applicants, manage applications and shortlist candidates, making it easier to find someone with the right attitude, potential and willingness to learn.
We can also help employers understand the apprenticeship funding and incentives that may apply to their vacancy, giving you a clearer understanding of the support available before making a recruitment decision.
Whether you are looking to recruit your first apprentice or expand an existing apprenticeship programme, there is substantial Government support available for employers investing in young talent.
If you would like to find out how much funding your business could access, speak to Educationwise today. We can help you explore available apprenticeship programmes, understand the relevant funding and incentives, and use our free recruitment service to help you 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 organisation.