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 range of employer incentives available, understanding how to access this support is an important part of planning your next recruitment decision.
The funding available can make apprenticeships more accessible for businesses, particularly those looking to recruit young people. However, the amount and type of support you can access depends on several factors, including your organisation, whether you pay the apprenticeship levy, the age and circumstances of the apprentice and the apprenticeship programme they are completing.
For employers considering apprenticeship recruitment, understanding the different types of Government support available is the first step.
The Government provides funding towards the cost of apprenticeship training and assessment, with the level of support depending on the apprentice and the employer. From August 2026, eligible apprentices aged 16 to 24 can have 100% of their apprenticeship training and assessment costs funded by the Government, up to the relevant funding band maximum. This applies to employers whether or not they pay the apprenticeship levy, subject to the funding rules.
This means that eligible employers can develop young talent without having to cover the full cost of their apprenticeship training. If the agreed training and assessment cost exceeds the funding band maximum, the employer is responsible for paying the difference, so it is important to understand the funding band associated with the apprenticeship you are considering.
For apprentices aged 25 and over, different funding arrangements apply depending on whether the employer pays the apprenticeship levy. 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 their levy funds to pay for apprenticeship training, with different contribution arrangements applying if their available funds are exhausted.
Apprenticeship funding is only one part of the support available. Eligible employers may also be able to access additional financial incentives when recruiting apprentices, with different payments available depending on the apprentice and the circumstances of the employer.
One of the key incentives is the £2,000 hiring payment available to eligible non-levy employers recruiting new apprentices aged 16 to 24. This provides additional support for employers bringing young people into their organisation and can sit alongside other forms of Government support where eligibility criteria are met.
There is also a £1,000 employer payment available when recruiting eligible apprentices aged 16 to 18, or eligible apprentices under 25 who are in care, have been in care or have an Education, Health and Care plan. This additional support recognises the opportunity employers provide when helping young people take their first steps into the workplace.
Employers recruiting eligible Foundation Apprentices may also be able to access a £2,000 payment. Foundation Apprenticeships provide young people with an opportunity to develop workplace skills and experience, creating a pathway into further apprenticeship opportunities and employment.
Another significant form of support is the £3,000 Youth Jobs Grant. Eligible employers can receive this when recruiting an apprentice aged 18 to 24 who has been out of work and claiming Universal Credit for six months or more. This can be combined with other eligible support, meaning some employers may be able to access multiple sources of Government funding when recruiting the same apprentice.
One of the most important things for employers to understand is that Government apprenticeship support does not necessarily come in the form of one payment. Depending on the apprentice and the circumstances of your organisation, you may be able to access several different forms of support alongside one another.
For example, an eligible employer could potentially benefit from fully funded apprenticeship training alongside an employer hiring payment, an additional payment or the Youth Jobs Grant. Employers may also benefit from National Insurance relief when employing eligible apprentices under the age of 25. The exact combination depends on the circumstances of the apprentice and employer and the relevant Government funding rules.
This is why it is worth looking at the complete funding picture before deciding whether an apprenticeship is right for your business. Focusing on one incentive alone could mean overlooking other support that may be available.
Whether your business pays the apprenticeship levy affects how apprenticeship funding is accessed, but it does not mean that apprenticeships are only suitable for large employers.
Employers with an annual pay bill of more than £3 million are generally required to pay the apprenticeship levy. Levy-paying employers can use their levy funds to pay for apprenticeship training and assessment through the Apprenticeship Service, while the Government adds a 10% top-up to levy funds.
For employers who do not pay the levy, Government funding is also available. The current funding arrangements mean eligible apprentices aged 16 to 24 can have their training and assessment fully funded up to the relevant funding band maximum, subject to the funding rules.
This makes apprenticeship recruitment an option for businesses of different sizes, not just large organisations with significant training budgets.
Once you have identified the apprenticeship that is right for your organisation and chosen a training provider, you will need to access the Apprenticeship Service. Employers in England use an apprenticeship service account to access Government apprenticeship funding and manage their apprenticeships.
You can create an apprenticeship service account yourself, or your training provider can create one on your behalf. You will generally need your employer PAYE reference and Accounts Office reference, and you will need to accept the employer agreement as part of setting up the account.
Once your account is in place, you can choose the apprenticeship training you need, select a training provider, manage funding and approve the apprenticeship arrangements. You can also give your training provider permission to carry out certain actions on your behalf, while you retain responsibility for approving relevant activity.
Working with an experienced training provider can make this process much easier, particularly if you are recruiting an apprentice for the first time.
Although Government funding can cover apprenticeship training and assessment in many circumstances, employers still have important responsibilities.
You must employ and pay your apprentice for their working hours and training, with apprentices entitled to at least the relevant National Minimum Wage. You also need to provide appropriate on-the-job training, supervision and support to help the apprentice develop within their role.
Apprentices must also receive at least 20% of their normal working hours as protected off-the-job training. This training is designed to develop the knowledge, skills and behaviours set out in the apprenticeship standard and must take place during the apprentice’s normal working hours.
This means apprenticeship recruitment is about more than accessing funding. Employers need to be prepared to give apprentices the time, support and workplace experience they need to succeed.
The financial support available is certainly valuable, but it should not be the only reason to consider an apprenticeship.
Apprenticeships give employers the opportunity to recruit for potential rather than simply competing for experienced candidates. You can bring someone into your organisation, introduce them to your systems and processes and develop their skills around the needs of your business from the beginning.
This can help employers address skills gaps, improve staff development and build a stronger pipeline of future talent. Apprentices can also progress within an organisation as their knowledge and confidence grows, creating opportunities for long-term development and succession planning.
For learners, apprenticeships provide the opportunity to earn a wage while gaining real workplace experience and working towards a recognised qualification. This combination of learning and employment can help people develop both the technical skills and professional confidence they need to build successful careers.
Government funding simply makes it easier for more employers to make that investment.
Understanding Government apprenticeship funding is one part of the process. Finding the right person to recruit is another.
At Educationwise, we offer a free recruitment service to help employers find suitable apprenticeship candidates. We can advertise your vacancy, attract applicants and shortlist candidates, helping you reduce the time and pressure involved in recruiting an apprentice.
We can also help you understand the apprenticeship options available to your business and explain the funding and incentives that may apply to your organisation. This means you can make your recruitment decision with a clearer understanding of both the apprenticeship programme and the support available.
Whether you are recruiting your first apprentice, developing an existing employee or looking to build a larger apprenticeship programme, our team can support you throughout the process.
Government apprenticeship funding can make a significant difference to employers looking to recruit and develop new talent. With fully funded training available for eligible apprentices aged 16 to 24, alongside a range of employer incentives and National Insurance support, there are more opportunities for businesses to invest in their future workforce.
The key is understanding what your organisation could access and how the different forms of support may work together. Eligibility varies, and Government funding rules can change, so it is important to check the latest guidance before making recruitment decisions.
At Educationwise, we can help you navigate the process, find the right apprenticeship programme and recruit the right person for your organisation through our completely free recruitment service.
If you are considering recruiting an apprentice and want to understand what Government apprenticeship funding and incentives your business could access, speak to Educationwise today. We can help you take the next step towards bringing new talent into your team and developing the skills your organisation needs for the future.
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 speak to Educationwise or check the latest Government guidance for the most up-to-date information relevant to your organisation.