Apprenticeship incentives for employers can help reduce the cost of recruiting and training new talent. The UK Government is introducing new funding, grant payments and training reforms in 2026.. As a result, businesses of all sizes can access significant financial support when hiring an apprentice.
The UK Government has introduced several apprenticeship incentives for employers, making apprenticeships more affordable and accessible than ever before. From grant payments and fully funded training to National Insurance savings, employers can benefit from a range of financial support when recruiting apprentices in 2026.
With new funding reforms coming into effect from August 2026, businesses will have even greater opportunities to access fully funded apprenticeship training for young people up to the age of 24. Whether you’re a small business looking to grow your team or a larger organisation developing future skills, understanding the available apprenticeship incentives for employers can help you maximise your return on investment.
Up to £6,000 in Available Apprenticeship Incentives for Employers
Hiring an apprentice can provide valuable financial support. Some employers may be eligible for up to £6,000 in combined incentives when recruiting young people.
SME Apprenticeship Hiring Incentive – £2,000
From October 2026, non-levy paying employers can receive a £2,000 incentive for hiring a newly recruited apprentice aged 16 to 24.
This funding is available to employers with an annual pay bill under £3 million, provided the apprentice starts their role on or after 1 October 2026 and joined the organisation within the previous three months.
Universal Credit Youth Jobs Grant – £3,000
Employers can also access a £3,000 Youth Jobs Grant when recruiting an 18 to 24-year-old who has been claiming Universal Credit for six months or more.
This initiative helps young people move into sustainable employment. It also supports businesses with recruitment costs.
Young Apprentice Payment – £1,000
A further £1,000 payment is available when an employer hires an apprentice who is:
- Aged 16 to 18
- Aged 19 to 24 with an Education, Health and Care (EHC) Plan
- Aged 19 to 24 and a care leaver
The payment is typically made in two instalments and helps employers provide additional support to eligible apprentices.
Fully Funded Training for Young Apprentices
Another significant apprenticeship incentive for employers is access to fully funded training.
For non-levy paying employers, apprenticeship training and assessment costs can be fully funded for eligible apprentices aged 16 to 18, or up to age 24 for apprentices with an Education, Health and Care (EHC) Plan or who are care leavers.
As a result, businesses can develop new talent without contributing towards training costs, creating substantial savings while building a skilled workforce.
From August 2026, apprenticeship funding will become even more accessible. Under the new Growth and Skills Levy reforms, apprenticeship training for young people up to the age of 24 will be fully funded for non-levy paying employers. This means more businesses will be able to recruit, train and retain young talent without contributing towards training costs, making apprenticeships an even more cost-effective route to building a skilled workforce.
National Insurance Savings for Employers
Employers who hire apprentices can also benefit from National Insurance savings.
Businesses are exempt from paying Class 1 employer National Insurance Contributions (NICs) for apprentices under 25. This applies to apprentices earning less than £50,270 per year.
Over the course of an apprenticeship, this can save employers thousands of pounds while reducing overall employment costs.
Levy Transfers Can Help Fund Apprenticeships
Small and medium-sized businesses that do not pay the Apprenticeship Levy may still be able to access apprenticeship funding.
Larger organisations can transfer unused levy funds to smaller employers through levy transfer agreements. In many cases, this can cover up to 100% of apprenticeship training costs.
Consequently, apprenticeships remain an affordable workforce development solution for businesses of all sizes.
Apprenticeship Funding for Large Employers
Large employers that pay the Apprenticeship Levy can use funds within their Apprenticeship Service Account to pay for apprenticeship training and assessment costs.
Under recent Growth and Skills Levy reforms, employers contribute 25% towards training costs when levy funds are exhausted. The government funds the remaining 75%.
Large employers can also support smaller businesses by transferring unused levy funds, helping create apprenticeship opportunities across local communities and supply chains.
How to Access Apprenticeship Funding and Incentives
All apprenticeship funding, incentive claims and training arrangements are managed through the Apprenticeship Service Account.
Employers should ensure they understand the latest funding rules and eligibility criteria before recruiting an apprentice. Working with an experienced training provider can help businesses maximise the apprenticeship incentives for employers available to them.
For the latest government guidance, employers can visit the official apprenticeship funding page on GOV.UK
Start Your Apprenticeship Journey with Juniper Training
At Juniper Training, we work with employers of all sizes to recruit, train and support apprentices across a wide range of sectors.
Whether you’re looking to hire your first apprentice or expand your existing workforce. Our team can guide you through the funding process and help you access the support available.
Explore our apprenticeship programmes to find out how we can support your business.
