How are Apprenticeships funded?
As of 1 August 2026, the new funding rules mean free apprenticeship training for all eligible under-25s.
The government will now fully fund apprenticeship training up to and including the funding band maximum for all eligible individuals aged 16 to 24 starting an apprenticeship. This applies across both non-levy paying employers and levy-paying employers who have exhausted their account funds.
Employers can also benefit from additional National Insurance relief on top. There has never been a better time to invest in your workforce.
An employer's levy status determines how the apprenticeship is funded.
The Growth and Skills Levy is paid by large employers with an annual pay bill of more than £3 million at a rate of 0.5%. Every employer that pays the levy has an apprenticeship account where they can access funds to spend on apprenticeship training.
You can access and manage your funding and provider payments through your apprenticeships service account.
Further employer incentives
Young Apprenticeship payment of £1,000
Applies when employers recruit:
An apprentice aged 16-18, or 19-24 year olds with an EHCP or care leaver status
Available for employers of all sizes. This is paid to the training provider, where it gets passed onto the employer:
90 days after the apprenticeship starts - £500
One year after the apprenticeship starts - £500
Youth Jobs Grant payment of £3,000
Applies when employers hire an 18-24 year old who has been:
On Universal Credit, and seeking work for six months or more
Available to employers of all sizes. Payments made to the employer directly (subject to DWP checks):
After 6 weeks - £1,800
After 18 weeks - £1,200
Non-levy hiring grant of £2,000 – available from October 2026
Starting 1 October 2026, non-levy-paying employers (typically small to medium-sized enterprises) can claim a £2,000 hiring grant when recruiting an additional apprentice aged 16–24. Key details of the grant:
The apprenticeship training starts on or after Thursday 1 October 2026.
The apprentice is starting a new apprenticeship programme and is aged 16-24
The apprentice cannot have been employed for more than 90 days before the start date of their apprenticeship
Non-levy hiring grant payments
This is paid to the training provider, where it then gets passed on to the employer:
90 days after the apprenticeship starts - £1,000
One year after the apprenticeship starts - £1,000
National Insurance savings
Apprentice employers are exempt from paying the 15% National Insurance contribution for apprentices under the age of 25. Employers save an average of £1,000 to £2,500 per year, potentially saving your business on average £2,000 per year.
Additional funding
You can receive £1,000 to support your apprentice in the workplace if, at the start of their apprenticeship training, they fall into one of the following categories:
16 to 18 years old (or 15 years old if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
19 to 24 years old with an education, health and care (EHC) plan
19 to 24 years old and have been in care
You have the flexibility to use this £1,000 to support your apprentice in any way that relates to their employment, including their salary, travel costs, or uniform.
Apprenticeship Delivery - High-quality training across the NHS, primary care and laboratories.
Recruitment Support - We help you attract, assess and onboard the right apprentices.
Funding Guidance - Our funding specialists help you maximise incentives and navigate the rules.
Ongoing Support - Dedicated account management and learner support throughout the apprenticeship journey.
Contact us
Skills4Science brings years of experience in advising businesses on the ideal training routes.
Contact us today to learn more about how we can support you and your business.