Thinking of taking on an apprentice? New funding could help

We explain new funding arrangements for employers taking on apprentices in England, who's eligible and what it covers.

Perhaps you’ve considered taking on an apprentice but are unsure if your business can afford it. You can see the benefit of training someone to become a valuable member of your team, but wages and the time needed to support them are a big commitment.

Did you know that new funding for employers in England could make it more affordable? If cost has been holding you back, it could be worth another look. Here’s what support is available and what you need to do.

Check what support you can get

From 1 October 2026, employers who don’t pay the apprenticeship levy can receive up to £2,000 for recruiting a new apprentice aged 16 to 24 when their apprenticeship training starts. The payment comes in instalments through your training provider.

To qualify, their apprenticeship training must start on or after 1 October 2026. They must not have worked for you for more than 90 days before that start date and must be included in the PAYE scheme linked to your apprenticeship service account.

For eligible apprenticeships starting from 1 August 2026, employers who don’t pay the levy can have training and assessment costs fully funded for apprentices aged 16 to 24 when their training starts. Funding covers costs up to the limit for their course. You pay any agreed costs above that limit.

Ask your provider to confirm eligibility and explain when payments will arrive before you commit.

Choose training that benefits your business

Think about where you need support now and the skills you will need as your business grows. That might be administration, customer service or a practical trade.

Choose an approved apprenticeship and a training provider that understands the role. A local college can be a useful starting point. Discuss what the apprentice will learn, how training fits around work and who in your team will support them.

With the right training, you can develop someone who understands your business and gradually takes on more responsibility.

Get the funding and paperwork in place

Create an apprenticeship service account and arrange to reserve training funding before the apprenticeship starts. Your provider can help with this and confirm your eligibility for the hiring payment. You don’t need to apply separately; the payment is passed to you through your training provider.

You’ll also need an employment contract, an apprenticeship agreement and an agreed training plan.

Budget for the whole commitment

Allow for wages, paid training time and the time your existing team will spend supervising. Check the correct minimum wage rate, which depends on the apprentice’s age and stage of training.

Planning these costs helps you see whether the arrangement is affordable while your apprentice learns.

How we can help

If you’re considering an apprentice, we can help you work through the wage costs, payroll requirements and effect on your cash flow. Speak to us before you commit, so you have a clear picture of what taking someone on would mean for your business.

Call 01603 624181 or email enquire@swintonaccountants.co.uk