Could an apprentice cost less than you think?

Apprenticeships are a great way to bring new talent into your business, develop the people you already have and build the skills you’ll need in the future.

And there’s good news for employers. There’s now more financial support available for apprenticeships, particularly for businesses recruiting younger people.

Depending on your circumstances, you could benefit from fully funded apprenticeship training, employer incentives and savings on National Insurance.

We know funding can feel complicated, so SS&L is here to help you understand what you could be eligible for and what it means for your business.

What support could be available?

100% funded apprenticeship training

From 1 August 2026, eligible non-levy employers can access 100% government funding for apprentices aged under 25.

So, if you’re a smaller employer looking to recruit a young apprentice, you may not need to contribute towards the cost of their apprenticeship training and assessment.

That can make taking on an apprentice a much more affordable way to grow your team.

£1.000 young apprentice payment 

You could also receive £1,000 when you recruit an apprentice who is:

• aged 16 to 18, or
• aged 19 to 24 with an Education, Health and Care Plan (EHCP) or who is a care leaver.

The payment is made in two installments:

£500 after 90 days
£500 after 365 days

£2,000 SME hiring incentive

Eligible non-levy and SME employers can receive £2,000 when they recruit an apprentice aged 16-24.

The payment is made in two installments:

£1,000 after 90 days
£1,000 after 365 days

This applies to new apprenticeship starts from 1 October 2026.

£3.000 Youth Guarantee incentive

There is also support available for employers who recruit a young person who has been out of work for more than six months.

Eligible employers can receive more than £3,000 when they recruit a 16 to 24 year old who has been unemployed for more than six months before starting their apprenticeship.

This payment is made in two installments:

£1,500 after 90 days
£1,500 after 365 days

This applies to new apprenticeship starts from 1 October 2026.

You could save on National Insurance too

There’s another potential saving that’s easy to overlook.

Employers pay 0% employer Class 1 National Insurance contributions for apprentices who are: 

• under 25
• earning below the upper secondary threshold, currently around £50,270 a year
• on an approved apprenticeship

This saving happens automatically through your payroll.

So, what could this mean for your business?

Put the different types of support together, and there could be up to £6,000+ in cash incentives per apprentice, excluding National Insurance savings, depending on your circumstances and the apprentice you recruit.

But the value isn’t just about the funding.

You’re also investing in someone who can grow with your business, develop the skills you need and contribute from day one.

Build your team

Bring in new talent and develop people with the skills your business needs.

Develop skills

Give your apprentice structured training alongside practical experience in your workplace.

Support progression

Help people build their confidence, knowledge and experience as they grow in their role.

Plan for the future

Develop talent now and build a stronger pipeline of skills people for the years ahead.

What about employers who pay the Apprenticeship Levy?

Large employers with an annual bill of more than £3 million pay the Apprenticeship Levy, which can be used to fund apprenticeship training and assessment through their digital account.

The funding arrangements are different for levy-paying employers, so we can help you understand how apprenticeships could work for your organisation.

Not sure what funding you could get?

You don’t need to work it all out yourself.

At SS&L, we’ll talk you through the options, help you understand what you could be eligible for and support you through the process of taking on an apprentice.

We can also help you find the right apprentice for your vacancy, making it easier to get started and find someone who is a great fit for your business.

Ready to explore apprenticeships?

Talk to the SS&L team.

Call 0330 332 7997 or get in touch with us to discuss your options.

Please note

Funding and employer incentives are subject to eligibility criteria and government rules, which can change.

The information on this page is a guide to support currently available. We’ll help you understand what applies to your business when you’re ready to recruit.