Employer Incentives
Apprenticeships provide employers with a cost-effective way to develop talent, address skills gaps and invest in the future of their workforce.
Alongside the benefits of increased productivity, improved staff retention and professional development, employers may also be eligible for a range of financial incentives and funding support.
Government Funding.
Apprenticeship training is heavily funded by the Government, making it an affordable option for businesses of all sizes. From 1 August 2026, non-levy employers recruiting apprentices aged 16 to 24 will receive 100% government funding towards apprenticeship training and assessment costs, meaning there is no employer contribution to pay. For apprentices aged 25 and over, employers are required to contribute just 5% towards the cost of training and assessment. Levy-paying employers can use funds from their Digital Apprenticeship Service account to cover apprenticeship training and assessment costs for both new and existing employees.
National Insurance Savings.
Employers do not pay employer National Insurance contributions for apprentices under the age of 25 who earn below the Upper Secondary Threshold.
This can provide significant savings while supporting workforce development and growth.
£1,000 Employer Incentive Payment
Employers can receive a £1,000 government incentive payment when employing an apprentice aged 16 to 18, or an apprentice under the age of 25 who has an Education, Health and Care (EHC) Plan or has previously been in care. This funding is paid directly to the employer and can be used to support a range of business costs associated with employing and developing an apprentice.
Depending on your sector, location and apprenticeship programme, additional grants and incentive payments may be available. Some industries, including childcare, may offer enhanced employer incentives to support recruitment, staff development and skills growth.
