New Employer incentives – Find out more information here
Information About Funding and Incentives
Changes, updates, and everything you need to know
The shift from the Apprenticeship Levy to the more flexible Growth and Skills Levy in April 2026 offers shorter programme durations, new foundation routes, and the introduction of modular “apprenticeship units” are all redefining what apprenticeships look like in practice.
At the same time, funding rules are tightening, with reduced expiry windows, the removal of top-ups, and increased employer contributions.
Exciting new incentives and expanded sector opportunities aim to boost uptake and address skills gaps are outlined below.
Apprenticeship funding and employer incentives are designed to reduce the cost of training while helping businesses invest in long‑term workforce development. By accessing available funding, employers can upskill staff, strengthen retention, and plan for future growth without the financial pressure normally associated with training.
These incentives make it easier for businesses—particularly small and medium‑sized employers—to recruit new talent or develop existing employees in a cost‑effective and sustainable way.
Incentive Opportunities
Available from October 2026, there are additional payments of £2,000 for SME’s that take on a 16-24 year old apprentice. This is designed to create more apprenticeship opportunities for young people. The apprentice must have joined you within 3 months of their apprenticeship start date.
This is in addition to the already existing £1000 incentive for recruiting a 16-18 year old.
On top of the above, there is also available another £3000 Youth Jobs Grant if you take on an 18 to 24, and if the apprentice has been on universal credit for over 6 months.
This has been introduced to tackle the increased youth unemployment*
*The Universal Credit hiring incentive is paid directly to employers by the Department for Work and Pensions. For the other incentives and payments above, the apprenticeship training provider claims them on behalf of the employer and then passes them on.
Funding For Non-Levy paying employers
From August 2026, apprenticeship funding for non-levy paying employers will now be 100% funded for 16–24 year olds.
Along with the increased incentives, that are soon to be available, this will support with internal training costs and wages. Things will become more financially viable for smaller businesses to take on apprentices without overextending their resources.
These programs not only help young people gain practical, industry-relevant skills but also allow SMEs to cultivate talent tailored to their specific needs, improving productivity and retention in the long term.
Funding For Levy Employers
From August 2026, employers who pay into the Growth and Skills Levy will now have only a 12 month period to use these funds and there will no longer be a 10% top up. Any funds deposited before that date will remain subject to the existing 24-month expiry time frame.
Contact us for further information and to discuss what applies to you
