Find out more about funding support available to employers.
Employer Funding
Apprenticeship Funding and Financial Support for Employers
Hiring an apprentice can be a cost-effective way to grow your workforce, with a range of government funding schemes and employer support options available to help cover training and recruitment costs.
Whether you’re a small business looking to recruit your first apprentice or a larger organisation making use of apprenticeship levy funding, our team can help you identify the most suitable funding opportunities and understand how they apply to your business.
Through our free recruitment support service, we can guide you through the funding process, explain eligibility requirements, and provide practical advice on the financial support available when recruiting an apprentice.
Need advice? Contact our employer engagement team to discuss your apprenticeship recruitment plans and discover the funding options available to your organisation.
What Financial Support Is Available?
Employers may be able to access a variety of government funding schemes and apprenticeship incentives. The level of support available depends on factors such as the size of your organisation, the apprentice’s age and circumstances, and the apprenticeship programme being undertaken.
Full Funding for Eligible Apprentices Aged 16–24
For apprenticeship starts from August 2026, eligible apprentices aged 16 to 24 can benefit from fully funded training and assessment costs, up to the maximum value set by the relevant funding band.
This support is available to both levy-paying and non-levy-paying employers, provided all funding eligibility requirements are met. If training costs exceed the funding band limit, the employer will be responsible for covering the additional amount.
For Employers That Do Not Pay the Growth and Skills Levy
Many small and medium-sized businesses fall outside the scope of the Growth and Skills Levy.
When recruiting an eligible apprentice aged 16–24, the government covers the full cost of training and end-point assessment up to the applicable funding band maximum.
For apprentices aged 25 and over, employers are typically required to contribute a small percentage towards training costs, with the government providing the majority of the funding. This shared-cost model helps make apprenticeships an accessible and affordable workforce development option for non-levy-paying employers.
For Employers That Pay the Growth and Skills Levy
Organisations with larger payrolls may contribute to the Growth and Skills Levy and can use funds held within their apprenticeship service account to pay for approved apprenticeship training and assessment.
These funds can be used across a range of eligible apprenticeship programmes and other approved learning opportunities available through the levy system.
If available levy funds have been used in full, additional government support may still be available. Eligible apprentices aged 16–24 can continue to receive fully funded training and assessment up to the funding band maximum. For apprentices aged 25 and over, funding may be shared between the employer and the government, subject to the funding rules in place at the time.
Need Help Understanding Apprenticeship Funding?
Our team can explain the funding options available to your organisation, help you navigate eligibility requirements, and ensure you make the most of any financial support available when recruiting an apprentice.
Do Apprenticeship Levy Funds Expire?
Yes. Apprenticeship funding held within an employer’s Apprenticeship Service account is subject to expiry rules if it is not used within the permitted timeframe.
From August 2026, newly added levy funds must be spent within 12 months. Any unused balance remaining after this period will expire and be removed from the account. Funds that were credited before August 2026 continue to follow the previous 24-month expiry timescale.
Changes introduced from August 2026 also mean that the additional government top-up previously applied to new levy contributions is no longer available.
To maximise the value of available funding, employers should plan how levy funds are used and invest them in apprenticeship training that supports both recruitment and workforce development objectives. Effective use of levy funding can help businesses attract new talent, address skills gaps, and upskill existing employees while making the most of the funding available.
Make the Most of Your Levy Funding
Our team can help you understand levy funding rules, monitor funding deadlines, and identify apprenticeship opportunities that align with your business goals, helping you gain the greatest return from your investment in skills and training.
Employer Grants and Incentive Payments
In addition to apprenticeship funding, some employers may qualify for extra financial support when taking on an apprentice. These incentive payments are designed to encourage recruitment, help offset employment costs, and support businesses investing in new talent.
Up to £8,000 in employer incentive payments
Depending on your business and the apprentice you recruit, you could be eligible for up to £8,000 in government recruitment support payments if you do not pay the Growth & Skills levy, or up to £6,000 if you do.
The payments available include:
£1,000 Additional payment
Employers may receive £1,000 when recruiting an eligible apprentice who is:
· Aged 16-18
· Aged 19-24 with an EHCP (Education, Health and Care Plan)
· Aged 19-24 who has previously been, or is, in care
This payment is available in addition to government funding towards apprenticeship training costs, making it even more affordable to recruit young talent.
£2,000 Foundation Apprenticeship Incentive
Employers may receive £2,000 when recruiting an eligible Foundation Apprentice.
Foundation Apprenticeships are designed for young people and provide Level 2 job-specific skills and experience across a range of areas, including construction, engineering, health and social care, IT and digital, and more.
They are available to young people aged 16 to 21 or eligible young people aged 22 to 24 who have an EHCP (Education, Health and Care Plan) and are or have been in care.
£2,000 Apprenticeship Hiring Incentive
From 1 October 2026, eligible employers who do not pay the Growth and Skills Levy may be able to receive a £2,000 hiring payment when recruiting a new apprentice aged 16 to 24.
This funding is designed to help employers invest in young talent and reduce the cost of recruitment.
£3,000 Youth Jobs Grant
Employers may be eligible for a £3,000 Youth Jobs Grant when recruiting an eligible apprentice aged 18 to 24 who has been out of work and claiming Universal Credit for at least six months.
This payment is made directly to eligible employers by the Department for Work and Pensions.
Additional Cost Savings When Hiring Young Apprentices
Recruiting younger apprentices can offer further financial benefits for employers. In certain circumstances, businesses may not be required to pay employer National Insurance contributions for apprentices aged under 25, helping to reduce overall employment costs and making apprenticeship recruitment even more cost-effective.
Can Employer Incentives Be Claimed Together?
In some cases, yes. Businesses that meet the relevant eligibility requirements may be able to receive more than one incentive payment for the same apprentice.
For example, a non-levy-paying employer recruiting an eligible apprentice aged 16 to 18 could potentially qualify for multiple support payments, increasing the total financial assistance available. The exact amount will depend on the apprentice’s circumstances, the type of apprenticeship, and the funding schemes available at the time of recruitment.
Because funding rules can change, it is important to check the latest eligibility criteria before making recruitment decisions.
What Funding Could Your Organisation Access?
Apprenticeship funding, grants, and incentive payments can sometimes seem complex, but expert support is available to help you navigate the options.
Through our free apprenticeship recruitment service, our experienced team can help your business:
- Explore the funding and financial support available to you
- Identify any grants, incentives, or employer payments you may be eligible for
- Select the most suitable apprenticeship programme for your workforce needs
- Recruit and attract high-quality apprenticeship candidates
- Understand any employer contributions that may apply
- Make the most of available funding opportunities
Get started with the Apprenticeship Service
Whether you’re ready to recruit or just exploring your options, speak to our team for straightforward advice on apprenticeship funding.
Funding information
Apprenticeship funding, grants and incentives are subject to eligibility criteria and government funding rules, which can change.
The information on this page reflects the 2026/27 apprenticeship funding rules and is intended as a guide. Your eligibility will depend on your business, the apprentice and the apprenticeship programme.
For the latest government guidance, visit GOV.UK.
Other funding and business support
There may be additional funding and support available to help your business grow, recruit and develop your workforce.
Tees Valley Business Compass Growth Fund
Funding may be available towards eligible business growth projects.
Tees Valley Business Compass can provide you with tailored funding and support to help your business grow.
You can access funding for:
- Developing marketing strategies
- Getting your business online
- Workforce training plans
- Product and service development
- Business process review
- And much more!
Other local and regional support
Additional funding and support may also be available through local authorities and regional programmes, including:
Tees Valley Combined Authority Age Grant – support for eligible employers recruiting apprentices
Stockton-on-Tees Youth Employment Grant – support may be available for eligible employers. Contact Roland Todd on 01642 526184 for further information.
Durham Works – employment and skills support for eligible young people and employers in County Durham.
Routes to Employment Grant – employment support available in the Redcar and Cleveland area.
Funding programmes, eligibility and availability can change. Check the relevant programme for the latest information or speak to our team about the support that may be available to your business.
