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Apprenticeship Incentives and Funding

Exciting new government funding and incentives will make recruiting apprentices more affordable and attractive from the 2026/27 academic year.

These changes represent one of the most significant enhancements to apprenticeship support in recent years, providing employers with greater financial assistance to recruit, develop and retain future talent.

a graphic explaining the incentives mentioned on the post

What’s changing?

100% Government-Funded Training for SMEs Recruiting Apprentices Under 25

From August 2026, eligible non-levy-paying employers will receive 100% government funding towards apprenticeship training and assessment costs when recruiting apprentices aged under 25.

This removes the employer co-investment previously required for many apprentices, making apprenticeships an even more cost-effective way to recruit and develop skilled employees.

 

Existing £1,000 Employer Incentive Remains Available

Employers can also continue to receive a £1,000 incentive payment when recruiting:

  • An apprentice aged 16–18.
  • An apprentice aged 19–24 with an Education, Health and Care Plan (EHCP).
  • A care-experienced apprentice aged 19–24.
New £2,000 SME Hiring Incentive

From October 2026, eligible non-levy-paying employers can claim a £2,000 cash incentive when recruiting an apprentice aged 16 to 24.

  • You must be a non-levy-paying employer.
  • The apprentice must be aged 16–24.
  • Applies to apprentices starting their apprenticeship from 1 October 2026.
  • The apprentice must be a new hire, and their employment start date must be within the past 90 days from the apprenticeship training start date.
  • The payment will be issued in two instalments, and employers will be eligible for the first payment once the apprentice has completed the first 90 days of their apprenticeship; the second payment will be made after 365 days.
  • The apprentice is included in your PAYE scheme and added to your apprenticeship service account; eligibility is determined by the DfE and HMRC.
  • The payment can be claimed alongside fully funded training where applicable.
What Does This Mean for Your Business?

For many small and medium-sized businesses, these measures provide a significant opportunity to reduce recruitment and training costs.

By combining:

  • 100% funded apprenticeship training
  • The existing £1,000 employer incentive
  • The new £2,000 SME hiring incentive

Eligible employers can access substantial financial support while addressing skills shortages, developing future talent and strengthening their workforce.

Give me a chance. These incentives are further reason to give the next generation of talent a chance. Someone took a chance on you, now is the time to do the same.

Why Recruit an Apprentice?

  • Develop skills tailored to the needs of your organisation.
  • Build a sustainable talent pipeline for the future.
  • Improve staff retention and succession planning.
  • Increase productivity through workforce development.
  • Benefit from government-funded training and employer incentives.
  • Support local people to gain valuable careers and qualifications.

Whether you are recruiting your first apprentice or expanding your existing apprenticeship programme, there has never been a better time to invest in apprenticeships.

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We’re Here to Help

Our Employer Partnerships Team can support you with:

  • Identifying the right apprenticeship programmes for your business.
  • Advertising vacancies and recruiting apprentices.
  • Accessing available funding and incentive payments.
  • Understanding eligibility requirements.
  • Workforce planning and skills development.

To discuss your recruitment plans or apprenticeship opportunities for the 2026/27 academic year, please contact your Key Account Manager or email employers@chesterfield.ac.uk.

Thank you for your continued partnership and support. We look forward to developing our partnership and helping your business make the most of these exciting new opportunities that are available.