For employers looking to grow their teams, apprenticeships can provide an opportunity to bring new talent into the business while developing the skills the organisation needs for the future. In 2026, there is also more Government support available to employers than in previous years, with funded apprenticeship training and a range of financial incentives designed to encourage businesses to recruit young people.
For many employers, understanding the available support is an important part of deciding whether an apprenticeship is right for their organisation. The funding available depends on factors such as the apprentice’s age, the type of apprenticeship, the employer’s circumstances and whether the business pays the apprenticeship levy. However, with several forms of support now available, recruiting an apprentice could be more accessible than many employers realise.
Fully funded apprenticeship training
One of the biggest changes for employers is the Government funding available for eligible young apprentices. 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. For non-levy employers, this removes the training contribution that would otherwise apply to eligible apprentices in this age group. Levy-paying employers may also benefit where they have insufficient funds in their apprenticeship service account.
This is important because the cost of training has traditionally been one of the considerations employers have had when looking at apprenticeship recruitment. With eligible young apprentices now able to access fully funded training and assessment, businesses can focus more on finding the right person and providing them with the workplace experience, support and development they need to succeed.
The funding is specifically for apprenticeship training and assessment, rather than the apprentice’s salary or other employment costs. Employers remain responsible for employing and paying their apprentice in line with the relevant employment and minimum wage requirements.
The £2,000 apprenticeship hiring payment
From 1 October 2026, eligible non-levy employers recruiting a new apprentice aged 16 to 24 can receive a £2,000 hiring payment, subject to the relevant Government eligibility criteria.
The payment is designed to support employers with the costs associated with recruiting a new apprentice and provides an additional incentive for smaller businesses that may not have considered apprenticeship recruitment before. The payment is separate from apprenticeship training funding, meaning eligible employers can benefit from funded training while also accessing the hiring payment where the criteria are met.
The introduction of this payment gives non-levy employers another reason to consider apprenticeships as part of their wider recruitment strategy. Rather than competing solely for experienced candidates, businesses can recruit people with potential and develop their skills around the organisation.
The £1,000 Additional Payment
There is also a £1,000 Additional Payment available to employers recruiting certain eligible apprentices. This includes 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 intended to provide additional support to employers creating apprenticeship opportunities for young people who may benefit from extra support as they begin their careers. It can be used towards employment-related costs such as equipment, travel or uniform and is paid to eligible employers through the training provider.
This support is separate from the apprenticeship training funding, meaning it can sit alongside funded training and other eligible Government incentives. For employers, it provides additional support at the point when an apprentice is beginning to settle into the workplace and develop their skills.
The £3,000 Youth Jobs Grant
Another significant form of support is the £3,000 Youth Jobs Grant. Eligible employers can receive this grant when recruiting an apprentice 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 Youth Jobs Grant is designed to encourage employers to create opportunities for young people who have experienced a longer period away from employment. For businesses, it provides an opportunity to bring motivated individuals into the organisation while receiving additional financial support towards their employment.
Importantly, the Youth Jobs Grant can be combined with other eligible apprenticeship support. This means that where the relevant criteria are met, an employer may be able to receive the £3,000 Youth Jobs Grant alongside the £2,000 apprenticeship hiring payment, potentially providing £5,000 in combined employer payments for the same apprentice.
The exact support available will depend on the circumstances of the apprentice and the employer, so businesses should always check the current eligibility requirements before making recruitment decisions.
Support for care-experienced apprentices
There is also specific support available for care-experienced young people entering apprenticeships. Eligible care leavers under the age of 25 can receive a £3,000 care leaver bursary when starting an apprenticeship.
Unlike the employer incentives discussed above, this payment is made directly to the apprentice rather than the business. The bursary is designed to help with the personal costs associated with starting work and training, which could include travel, accommodation, household bills and other everyday expenses.
For employers, understanding the bursary can be valuable when recruiting care-experienced apprentices. It forms part of a wider support package that can help young people manage the transition into employment and build a stable foundation for their apprenticeship.
In addition, eligible employers may be able to receive the separate £1,000 Additional Payment when recruiting a qualifying care-experienced apprentice aged 19 to 24. This is employer funding and is separate from the £3,000 bursary paid to the apprentice.
Employer National Insurance relief
Financial support for apprentices is not limited to direct Government payments. Employers can also benefit from National Insurance relief when employing qualifying apprentices under the age of 25.
Eligible employers can benefit from a 0% employer National Insurance rate on qualifying earnings for apprentices under 25, subject to the relevant National Insurance and apprenticeship requirements. Unlike an employer incentive, this is not a payment that businesses claim through their training provider. Instead, it reduces the employer National Insurance cost that would otherwise apply to qualifying earnings.
When considered alongside funded apprenticeship training and other eligible incentives, National Insurance relief can further reduce the overall employment costs associated with recruiting a young apprentice.
Can apprenticeship incentives be combined?
One of the most important things for employers to understand is that these forms of support do not necessarily operate independently. Depending on the apprentice and the employer’s circumstances, businesses may be able to access several forms of Government support for the same apprentice.
For example, an eligible non-levy employer could potentially access the £2,000 apprenticeship hiring payment alongside the £3,000 Youth Jobs Grant, while also benefiting from fully funded apprenticeship training. Other payments may also apply depending on the apprentice’s age and circumstances.
This means employers should look at the full funding picture rather than focusing on one incentive in isolation. The combination of training funding, employer payments and other financial support can make a significant difference to the overall investment involved in recruiting and developing an apprentice.
The Government’s current guidance states that eligible non-levy employers may be able to receive up to £8,000 in employer payments, while levy-paying employers may be able to receive up to £6,000, depending on the payments they qualify for and the relevant eligibility criteria.
Why the financial support is only part of the story
Although the financial incentives are important, they should not be the only reason an employer recruits an apprentice. The biggest long-term benefit comes from developing a person who can grow alongside the business.
Apprenticeships allow employers to recruit for potential rather than relying solely on previous experience. An apprentice can learn your systems, understand your customers, develop relationships across the organisation and build their skills around the specific needs of the business.
This can be particularly valuable in sectors where experienced candidates are difficult to find. Instead of competing for the same pool of skilled workers, businesses can invest in someone who is enthusiastic, willing to learn and capable of developing into a valuable member of the team.
Apprenticeships can also support retention and succession planning. As an apprentice gains experience, they can take on greater responsibility and potentially progress into more senior, specialist or management roles. This allows employers to develop their future workforce internally rather than relying entirely on external recruitment.
What does this mean for employers?
The financial support available in 2026 has changed the apprenticeship landscape considerably. Eligible employers can access funded training, new hiring payments and additional incentives that can help reduce some of the financial pressures associated with bringing new talent into the business.
However, eligibility is not the same for every employer or apprentice. The support available can depend on age, apprenticeship type, levy status, employment circumstances and the date the apprenticeship starts. Government funding rules can also change, so it is important to check the latest guidance before relying on a particular payment.
This is where having the right training provider can make the process much easier.
Educationwise can help you recruit your next apprentice
At Educationwise, we do more than deliver apprenticeship training. We also provide a completely free recruitment service to help employers find the right apprentice for their organisation.
Whether you already have someone in mind or are starting the recruitment process from scratch, we can advertise your vacancy, attract suitable candidates, manage applications and shortlist applicants, helping you find people with the right attitude, potential and willingness to learn.
We can also help you understand the apprenticeship funding and incentives that may apply to your vacancy, so you have a clearer picture of the support available before you make a recruitment decision.
With funded apprenticeship training, new employer incentives and additional financial support now available, there has rarely been a better time to explore what an apprentice could bring to your organisation.
If you are considering recruiting an apprentice, speak to Educationwise today. Our team can help you identify the right apprenticeship programme, understand the support available and use our free recruitment service to find the right person for your business.
Government funding, incentives and eligibility criteria are subject to change. Please speak to Educationwise for the latest guidance relevant to your circumstances.