Apprenticeship Funding & Employer Incentives
A guide for non-levy employers
Significant new funding and employer incentives are on the way, creating more opportunities for businesses to invest in talent while reducing recruitment and training costs.
From fully funded training for eligible employers and SME hiring incentives to additional support for recruiting young people and savings through National Insurance contributions, these changes could make apprenticeships more accessible and affordable.
Why hire an apprentice?
- REDUCE COSTS: Lower your training investment
- ACCESS CASH INCENTIVES: Up to £6,000+ per apprentice (excluding NIC savings)
- BUILD SKILLED TEAMS: Develop talent & improve productivity
- GROW YOUR BUSINESS: Future-proof your workforce & drive growth
What support is available to employers?
100% government training funding: The government fully funds apprentices aged under 25 for eligible non-levy employers.
Applies to new starts on or after 1st August 2026.
£1,000 young apprentice payment: For apprentices aged 16-18, or 19-24 with an EHCP or care leaver.
Funds paid in 2 instalments of £500. £500 after 90 days & £500 after 365 days.
£2,000 SME hiring incentive: For eligible non-levy/SME employers hiring apprentices aged 16-24.
Funds paid in 2 instalments: £1000 after 90 days & £1000 after 365 days. Applies to new starts on or after 1st October 2026.
Youth guarantee incentive: Employers can claim £3,000 when they hire 16–24 year olds who have been unemployed for more than six months before starting their apprenticeship.
Funds paid in 2 instalments: £1500 after 90 days & £1500 after 365 days. Applies to new starts on or after 1st October 2026.
National insurance (NIC) relief
Employers pay 0% employer class 1 NICs for apprentices who are:
- Under 25 years old
- Earning below the upper secondary threshold (approx £50,270 per year, threshold reviewed annually)
- On an approved apprenticeship
Find out more about the hiring process: https://www.sslcourses.co.uk/employers-hub/hiring-an-apprentice/