Hire an apprentice
Funding, incentives and benefits for your business.
Employer information
Whether you’re looking to bring new talent into your organisation or invest in the development of your existing workforce, our apprenticeship team can help you find the right solution.
Eligible employers may benefit from government funding towards apprenticeship training and assessment, as well as financial incentives for taking on new apprentices, depending on the apprentice’s age, circumstances and the employer’s size. Explore the support available and see how an apprentice could benefit your business
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New ways to hire an apprentice
Growth and Skills Levy will replace the apprenticeship Levy from the 1st of August 2026.
The Growth and Skills Levy provides a more flexible offer to employers and learners, building on the apprenticeship levy.
It will help people learn new, relevant high-quality skills at work and fuel innovation in businesses across the country.
How does this effect my business?
Levy funds expire after 12 months from 1 August 2026
From 1 August 2026, the expiry window for levy funds reduces to 12 months from 24 months, increasing the urgency to commit funds before they are reclaimed.
The 10 percent top up ends from 1 August 2026
From 1 August 2026, the additional 10 percent government top up will no longer apply, reducing the value added to levy funds.
Co-investment increases to 25% once levy funds run out from 1 August 2026
From 1 August 2026, where levy funds are exhausted, employers will need to pay 25 percent of additional apprenticeship costs, with the government paying 75 percent.
Apprenticeship units
Apprenticeship units offer employers short, flexible training courses that up-skill existing staff in critical skill areas.
These courses are designed to help employers respond quickly to evolving skills needs and invest in workforce development.
Fully funded for non-levy payers hiring aged 25 and under
SMEs who do not pay the levy can get fully funded training and assessment for apprentices aged 25 and under, removing the previous 5 percent co investment charge.
National Insurance support remains for eligible under 25s
Employers remain exempt from employer National Insurance contributions for apprentices under 25, subject to the relevant salary cap, which can help reduce overall employment costs.
New incentives introduced to support businesses for eligible under 25s
- SME £2000 hiring grant
- Youth Jobs Grant £3000 hiring grant
Functional Skills no longer mandatory for over 19-year-olds
Government funding remains accessible for adult learners who still choose to study English and maths qualifications voluntarily.
Minimum duration
The minimum duration of an apprenticeship was reduced from 12 to 8 months in August 2025.
New incentives and grants when hiring new members of staff
If you’re considering hiring an apprentice in 2026, there has never been a better time to invest in new talent. The government has introduced a range of financial incentives aimed at making apprenticeship recruitment more cost-effective and attractive, particularly for small and medium-sized businesses. These enhanced support measures can help employers develop a skilled workforce while significantly reducing the costs associated with recruitment and training.
Young apprentice incentive
All business can receive a £1000 incentive for hiring an apprentice, if you:
- Recruit 16–18-year-old or
- 19–24-year-old with EHCP or Care leave status
The first instalment can be claimed at 3 months from the start of training, with the second instalment at 12 months.
SME (non-levy hiring incentive
SME’s can receive a £2000 incentive for hiring an apprentice, from October 2026, if you:
- Recruit 16–24-year-old and
- they were employed within 3 months of the apprenticeship training start date
The first instillment can be claimed at 3 months from the start of training, with the second instalment at 12 months.
Foundation apprentices
All Business can receive a £2000 incentive for hiring an apprentice on a foundation apprenticeship, if you:
- recruit a 16–21-year-old or
- 22–24-year-old with EHCP care experience
The incentive can be claimed in 3 instalments
- Final instalment (£666): Payable if the individual transitions to a subsequent connected apprenticeship within 6 months of completion while staying with the same employer
- First instalment (£667): Paid at 90 days into the programme
- Second instalment (£667): Paid at 242 days into the programme
Youth jobs grant
All business can receive a £3000 incentive for hiring a new member of staff, if you recruit 18-24 year old who is:
- On Universal Credit, and
- Seeking work for the last 6months
Payments are made directly to employers via the DWP.
Change. Empower.
Connect.
