Apprenticeship Incentives and Funding

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:

• A care-experienced apprentice aged 19–24.
• An apprentice aged 16–18.
• An apprentice aged 19–24 with an Education, Health and Care Plan (EHCP).

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 apprentices 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 added to your apprenticeship service account, eligibility is determined by the DfE and HRMC.
• 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.

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.

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.