Employer Guide to Apprenticeships

An apprenticeship is a paid, work-based training programme that enables individuals to develop new skills and gain recognised qualifications while working alongside experienced colleagues. Apprenticeships are an effective way to attract new talent to your business, as well as a cost-effective solution for upskilling existing staff and securing the skills you need for the future.

Employer Obligations

Apprentices must have a contract of employment that outlines the duration, pay, and terms and conditions of their employment. Apprentices have the same rights as other employees, including paid holiday and sick pay
From 01/04/2026, the Apprenticeship Minimum Wage is £8.00 per hour (with a further increase expected in April 2027). Employers may pay apprentices of any age the Apprenticeship Minimum Wage for the first 12 months; however, after this period, they must increase pay to at least the standard National Minimum Wage for the apprentice’s age group
Apprentices must be paid through a PAYE scheme and cannot be self-employed
Apprentices should have a designated workplace mentor
Employers should allocate time for learning and development within the apprentice’s normal working hours. This may include college day-release sessions, mentoring, online learning, or other development activities

Funding for apprenticeship training costs (from 01/08/2026)

Business Size	Levy Paying Employers (employers with an annual wage bill of over £3million)	Small and medium sized employers enrolling an apprentice aged 16-24 on the first day of learning.	Small and medium sized employers employing an apprentice aged 25+ on the first day of learning.
Applicable Funding	Employers fund 100% of the apprenticeship training costs with available Apprenticeship Levy funds. If there are not sufficient funds available, the DfE will fund 75% of the cost, and the employer must self-fund the remaining 25%	Department for Education will cover 100% of the apprenticeship training costs. (this does not include the apprentices’ wages)	Department for Education will fund 95% of the apprenticeship training cost, and the employer must make a small contribution of 5% of the overall amount.

Grants and Incentives

There are 3 different incentive grants available to employers. If all the conditions are met, employers can combine all 3 grants. Our business engagement team will fully support you to access all funding available to your business.

Business Size	Incentive Payment	Age and Eligibility	Payment Terms
All Employers	£1000 Hiring Incentive	Apprentices aged 16-18 on their first day of learning (also 19-24 year old apprentices with an education health and care plan, or care leavers).	Paid in 2 equal instalments of £500 at 90 days, and 365 days.
Small and Medium Employers Only	£2000 SME Hiring Incentive (available from October 2026)	Newly hired Apprentices aged 16-24 on their first day of learning.	Paid in 2 equal instalments of £1000 at 90 days, and 365 days.
All Employers	£3000 Youth Jobs Grant (available from June 2026)	Newly hired candidates aged 18-24 who have claimed Universal Credit for over 6 months.	Pain in 2 equal instalments of £1500 at the end of month 1, and month 3.

Benefits for Employers

Strengthen your business and improve your bottom line – Apprenticeships deliver real returns, helping you improve productivity and be more competitive
Keep your workforce motivated – Apprentices are eager, motivated, flexible and loyal to their employer. 78% of employers reported improved productivity by hiring a new apprentice
Fill your skills gaps – Apprenticeships deliver skills designed around your business needs, providing the skilled workers of the future. 86% of employers said apprenticeships developed skills relevant to their organisation, with 90% of apprentices staying on in their place of work after completion
Improved Workforce Morale – Hiring apprentices can boost team spirit and morale, with 73% of employers experiencing this benefit
Fresh Perspectives – Apprentices bring new ideas and digital skills to the business, often leading to innovation

Contact the Business Engagement Team

Our knowledgeable business engagement team will support you every step of the way. We are available to assist with any queries and are always happy to meet in-person to give a detailed breakdown of how apprenticeships can support your business.

Please call 01482 390888 or the main switchboard on 0345 120 0044 and select option “2”.

Alternatively, you can contact us via email at [email protected].

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