Apprenticeship funding for employers in 2026 

Apprenticeship funding has changed significantly in 2026, and much of it works in employers’ favour. For businesses taking on younger talent in particular, the government now covers the full cost of training and offers a series of incentive payments on top. Depending on who you hire, combined support can reach up to £8,000 per apprentice. 

This guide sets out what is available, who qualifies, and how the different elements fit together. It is written for employers of every size, including smaller businesses and those who have already spent their levy. We keep it current, so you can rely on it as an accurate picture of the funding landscape. 

Apprenticeship funding at a glance

• Training for apprentices under 25 is fully funded from 1 August 2026. Non-levy payers contribute nothing, and levy payers contribute nothing once their levy pot has been used up. 
• No employer National Insurance for apprentices under 25 earning less than £50,270 a year. 
• £3,000 Youth Jobs Grant for hiring an 18- to 24-year-old who has been on Universal Credit for six months. 
• Up to £2,000 for smaller employers taking on a 16- to 24-year-old apprentice, from 1 October 2026. 
• £1,000 for taking on a 16- to 18-year-old, or a 19- to 24-year-old who is care experienced or has an Education, Health and Care plan. 
• Up to £2,000 for placing a young person on a foundation apprenticeship. 
• Combined support can reach up to £8,000 per apprentice, depending on age and circumstances. 

Fully funded apprenticeship training for under 25s

From 1 August 2026, the government fully funds apprenticeship training for eligible apprentices aged 16 to 24, up to the funding band maximum. 

If you do not pay the apprenticeship levy, this means you will not contribute towards the cost of training an apprentice under 25. 

If you do pay the levy, you use your levy funds to cover training in the usual way. The government’s full funding applies once your levy pot has been used up. From that point you pay nothing towards training an apprentice under 25, rather than making the usual employer contribution. 

For apprentices aged 25 and over, the position is different. Once levy funds are exhausted, the employer contribution is 25 per cent of training costs.  

No employer National Insurance for apprentices under 25

Employers do not pay National Insurance contributions for apprentices under the age of 25, provided the apprentice earns less than £50,270 a year. For most apprentice salaries this represents a meaningful saving across the year, in addition to fully funded training. 

Apprenticeship incentive payments for employers

Alongside funded training, several direct payments are available. A number of them can be claimed together for the same apprentice. 

Youth Jobs Grant: £3,000. 

Available since 30 June 2026, this grant is paid to employers who hire someone aged 18 to 24 who has been claiming Universal Credit and looking for work for six months. It forms part of the government’s Youth Guarantee and is paid to the employer directly. 

Incentive for smaller employers: up to £2,000.

From 1 October 2026, non-levy paying employers can claim up to £2,000 for taking on a new apprentice aged 16 to 24 who joined the business within the previous three months. It is aimed at small and medium-sized employers and paid in instalments through the training provider. 

Young apprentice payment: £1,000.

Employers receive £1,000 for an apprentice aged 16 to 18, or aged 19 to 24 who has an Education, Health and Care plan or has been in local authority care. The training provider receives a matching payment. It is paid in two instalments, after 90 days and after 365 days in learning. 

Foundation apprenticeships: up to £2,000.

A further incentive of up to £2,000 is available to employers who take a young person onto a foundation apprenticeship, supporting their start and their progression. 

In addition, care experienced apprentices aged 16 to 24 are entitled to a £3,000 bursary. This is paid to the individual rather than the employer. 

How much funding you can claim per apprentice

The exact amount available depends on the apprentice’s age and circumstances, and eligibility should be confirmed for each hire. The following example shows how the elements combine in a common scenario. 

A small business hires a 22-year-old who has been on Universal Credit for six months and places them on an apprenticeship. The training is fully funded, no employer National Insurance is due, and the employer can claim the £3,000 Youth Jobs Grant alongside the £2,000 incentive for smaller employers. That is £5,000 in direct payments, before accounting for the value of the funded training and the National Insurance saving. 

Where an apprentice meets further criteria, for example a care experienced young person on a foundation apprenticeship, the combined support can reach the government’s stated maximum of up to £8,000 per apprentice. 

The wider point is straightforward. For younger talent, the cost and the perceived risk of taking on an apprentice have largely been removed. What remains is a motivated employee, trained in the skills a business needs, at a fraction of the usual cost of hiring. 

Get help with apprenticeship funding

The rules on eligibility change from time to time, and the amount available depends on the individual you hire. Keeping employers on the right side of that detail is part of what we do. 

At La Fosse Academy we help businesses understand the funding, find the right talent, and build teams that last. To find out what you could claim for a specific role or hire, get in touch and we will map it out with you.