Apprenticeship Funding & Incentives for Employers
What could your business receive?
Apprenticeship training may cost less than you think. For eligible employers in England, government funding can cover the full cost of training and assessment. Additional payments may also be available when you take on a young apprentice, and some funding can depend on the apprenticeship programme.
Whether you’re recruiting or developing someone already in your team, we’ll help you understand what funding applies and what your business would need to contribute.
How much does apprenticeship training cost?
The funding available depends on whether your business pays the apprenticeship levy and the apprentice’s age when they start. The table below applies to eligible apprenticeships starting from 1 August 2026.
| Your business | Apprentice aged 16–24 | Apprentice aged 25 or over |
|---|---|---|
| You don’t pay apprenticeship levy | Government funding covers 100% of eligible training and assessment costs. | Government funding covers 95%. Your business pays 5%. |
| You pay the apprenticeship levy | Use the funds in your apprenticeship service account. If these run out, government funding covers 100% of eligible remaining costs. | Use the funds in your apprenticeship service account. If these run out, government funding covers 75% of eligible remaining costs. Your business pays 25%. |
If you don’t pay the levy
You can use apprenticeship funding to train an eligible existing employee as well as someone you’ve just hired.
For example, if an eligible apprenticeship costs £8,000 and your employee is aged 25 or over when they start, your 5% contribution would be £400. Government funding would cover the remaining £7,600.
For an eligible apprentice aged under 25 at the start, the training and assessment could be fully funded.
We’ll confirm the programme cost and your contribution before you commit.
If you pay the levy
Your apprenticeship service account funds eligible apprenticeship training and assessment. It can support new recruits or help existing employees develop the skills their role requires.
We’ll work with you to identify suitable programmes and understand how they fit your available funding.
For levy funds entering your account from 1 August 2026, the expiry period is 12 months. Funds received before that date retain their original 24-month expiry period. Planning ahead helps you put that funding to use.
Funding is available up to the maximum allowed for the apprenticeship. If the agreed training price exceeds that limit, your business pays the difference.
These arrangements cover training and assessment. You remain responsible for the apprentice’s wages and providing paid time for their apprenticeship training.
Payments for employers taking on apprentices
Training funding and employer incentive payments are separate. Depending on the apprentice and how they’re recruited, your business may qualify for additional support. Below we explore some of the additional incentives available.
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£2,000 hiring payment for non-levy employers
If your business doesn’t pay the apprenticeship levy, you may receive £2,000 for taking on an eligible apprentice aged 16–24.
Their apprenticeship training must start from 1 October 2026, and they must have joined your business no more than 90 days before training begins.
Your training provider passes the payment to you in two £1,000 instalments: the first after 90 days and the second after one year, or after 242 days for qualifying shorter programmes.
The apprentice must be on the PAYE scheme linked to your apprenticeship service account, and still employed by you and undertaking their apprenticeship when each payment is due.
Up to £2,000 for a foundation apprenticeship
Foundation apprenticeships help young people gain workplace experience and prepare for further apprenticeship training.
Employers may receive up to £2,000 for an eligible foundation apprentice. These programmes are generally available to people aged 16–21. Certain people aged 22–24 can also qualify, including those with an Education, Health and Care plan, eligible care experience, or who are in prison or prison leavers.
Payment is made in stages. The final instalment depends on the apprentice progressing to a non-foundation apprenticeship with the same employer within six months of completing the foundation, and remaining on that programme for 90 days.
If you’re considering a new starter for a retail, customer service, or administration role, explore our foundation apprenticeship or speak to us about whether it would suit the vacancy.
£1,000 for supporting an eligible young apprentice
Both levy and non-levy employers may receive £1,000 to help with the costs of supporting an eligible apprentice at work.
The apprentice must be aged 16–18 when their training starts, or aged 19–24 with an Education, Health and Care plan or eligible care experience.
Your training provider checks eligibility and passes the payment to you in instalments. The apprentice must still be employed by you and undertaking their apprenticeship when each payment is due.
This support is separate from funding for training and assessment. Eligible non-levy employers may receive it alongside the £2,000 hiring payment.
£3,000 through the Youth Jobs Grant
The Youth Jobs Grant may provide £3,000 when you recruit an eligible person aged 18–24 who has been unemployed and claiming Universal Credit for at least six months.
It is available to eligible levy and non-levy employers, but the recruitment route matters. Your vacancy must go through the approved Department for Work and Pensions process before you recruit. Hiring someone independently and then applying for the grant does not qualify.
The job must provide at least 25 paid hours a week for at least four months and meet the scheme’s other employment requirements. Your business must have been trading for at least six months.
Payments are made directly by the Department for Work and Pensions: £1,800 after six weeks and £1,200 after 18 weeks, subject to the required checks.
Always check the official requirements before advertising or making an offer.
Lower employer National Insurance costs
Employers can pay 0% employer Class 1 National Insurance on qualifying earnings for apprentices under 25 who are on an approved apprenticeship.
The relief applies up to the Apprentice Upper Secondary Threshold. Earnings above that threshold remain subject to employer National Insurance.
Your payroll team or accountant can check the correct National Insurance category and apply the relief.
Let’s work out what applies to your business
You don’t need to know all the funding rules before speaking to us.
Tell us about the role you want to fill or the employee you’d like to develop. We’ll help you find an appropriate apprenticeship and explain the funding available, including any employer contribution.
If you’re recruiting an apprentice through Swarm, our recruitment service is free when we’re your training provider. We can help you find someone suited to the role and support them through their programme.
Get in touch with our team to find out more
Funding information checked on 1 October 2026. This page covers apprenticeship funding in England. Eligibility, programme availability and payment conditions apply.
For the full rules, see the government’s apprenticeship funding guidance.
Frequently Asked Questions
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Yes. Eligible existing employees can undertake an apprenticeship where the programme will give them substantial new skills relevant to their role. The training does not have to be reserved for new recruits.
Recruitment incentives have separate conditions. For example, the £2,000 non-levy hiring payment requires the employee to have joined your business no more than 90 days before their apprenticeship training starts.
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Potentially. Some payments can be combined where the employer, apprentice and recruitment route meet each scheme’s conditions.
We’ll check which payments apply to your circumstances rather than assume that every apprentice qualifies for the same amount.
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Full funding refers to eligible training and assessment costs within the apprenticeship’s funding limit.
You still pay wages and provide paid time for training. You’ll also need to allow for the normal costs of employing and supporting someone in the role.
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No. Eligible employees aged 25 and over can also receive apprenticeship funding.
The amount your business contributes depends on whether you pay the levy and whether you have sufficient funds in your apprenticeship service account.
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Not necessarily. Funding rules depend on the apprenticeship’s start date, and incentive schemes have their own qualifying dates.
If you already employ an apprentice, speak to us before assuming that a new funding arrangement or payment applies to their programme.