For employers looking to recruit, develop new talent and reduce workforce costs, there has never been a better time to invest in apprenticeships.
From 1 October 2026, eligible non-levy paying employers can access a new £2,000 Apprenticeship Hiring Incentive, alongside existing government support, funded training and National Insurance savings. Many employers could benefit from several incentives at the same time, making apprenticeships one of the most cost-effective recruitment and workforce development solutions available.
£2,000 New Hire Grant
The new £2,000 Apprenticeship Hiring Incentive is available to eligible non-levy paying employers recruiting an apprentice aged 16 to 24.
To qualify:
- The apprentice must be aged 16 to 24 at the start of the apprenticeship.
- The apprentice must be employed through the employer’s PAYE scheme.
- The apprentice must typically have joined the organisation no more than 90 days before the apprenticeship begins.
The payment is made in two instalments of £1,000, helping employers offset recruitment, onboarding and employment costs.
Additional £1,000 Young Apprentice Incentive
Employers may also be eligible for the existing £1,000 Young Apprentice Incentive when recruiting:
- Apprentices aged 16 to 18.
- Apprentices aged 19 to 24 with an Education, Health and Care Plan (EHCP).
- Apprentices aged 19 to 24 who are care experienced.
This incentive is paid separately from apprenticeship funding and can be used to support equipment, uniforms, mentoring and workplace support.
Government-Funded Training
One of the biggest advantages for employers is that apprenticeship training is heavily supported by government funding.
For eligible non-levy employers:
- 100% of apprenticeship training and assessment costs are funded for apprentices aged 16 to 24.
- For apprentices aged 25 and over, employers typically contribute just 5% of the training cost, with government funding covering the remaining 95%.
- The levy transfer service can be utilised to apply for assistance with covering the 5% cost also, meaning this may also end up fully funded.
This means employers can access high-quality training and nationally recognised qualifications while minimising investment costs.
Save on Employer National Insurance Contributions
Employers can also benefit from significant National Insurance savings.
Where an apprentice is:
- Under the age of 25; and
- Paid below the applicable Upper Secondary Threshold,
employers pay 0% employer Class 1 National Insurance Contributions on those earnings.
For businesses employing multiple apprentices, these savings can quickly add up and reduce overall staffing costs.
The Combined Financial Benefits
For many employers, the financial support available can be substantial.
An eligible employer recruiting a 16 to 18-year-old apprentice may benefit from:
- £2,000 New Hire Grant
- £1,000 Young Apprentice Incentive
- 100% Government-funded training and assessment
- National Insurance Contribution savings
- Reduced recruitment and talent acquisition costs
Combined with the long-term benefits of developing skilled employees tailored to your business needs, apprenticeships represent a powerful investment in future growth.
Find Out More
At Crown Vocational Training, we work closely with employers to maximise the funding and support available for apprenticeship programmes.
Whether you’re considering your first apprentice or looking to expand your workforce, our team can guide you through the funding options, eligibility criteria and recruitment process.
Contact Crown Vocational Training today to discover how apprenticeships can help your business save money, develop skills and build a stronger workforce for the future.
