CTP Advisory
The funding rules changed on 1 August 2026 and the answer is different depending on whether you pay the levy and how old the apprentice is. Pick a standard and we will show you the numbers.
Training is the cheap part. The apprentice rate is £8 an hour, but it only applies to under 19s and to those aged 19 and over in their first year. After year one an apprentice aged 21 or over moves to £12.71. Budget for that jump, because it catches employers out.
Up to £5,000 in stackable payments is available on top of funded training. See what you can claim.
Large employers can transfer unspent levy to smaller businesses. If you are non-levy, this can cover your cost entirely. We can help find a match.
Employer incentives
Several separate payments are available depending on your size, the apprentice's age and their circumstances, and some of them stack. Most employers claim one and never find out they were entitled to two.
£2,000
For non-levy employers taking on an apprentice aged 16 to 24. Paid in two instalments of £1,000, at around 90 days and again at 365 days, usually through the training provider.
The apprentice must not have been employed by you for more than 90 days before the practical period starts, so timing matters.
New starts from 1 October 2026£3,000
For hiring an 18 to 24 year old who has been claiming Universal Credit for six months or more. This one is open to all employers, not just smaller ones, so levy payers can claim it too.
This is a separate Department for Work and Pensions scheme rather than part of the apprenticeship funding system, which is exactly why it gets missed.
Available now£1,000
For an apprentice aged 16 to 18, or aged 19 to 24 with an Education, Health and Care Plan, or who is a care leaver. Paid as two instalments of £500 at 90 days and 365 days.
Available now£2,000
A separate payment for employers taking on an apprentice on an eligible foundation apprenticeship. Paid in instalments through the training provider.
Which standards qualify is set by government and listed against the standard itself, so check before assuming.
Available now£0 NI
No employer National Insurance contributions on apprentices aged under 25 earning below the apprentice upper secondary threshold. Not a grant, but on a full time wage it is worth more than most of the payments above.
OngoingA smaller employer taking on a twenty year old who has been on Universal Credit for six months could claim both the SME hiring incentive and the Youth Jobs Grant.
£5,000
On top of training that costs nothing, and with no employer National Insurance to pay. That is the position from October 2026 for a non-levy employer.
Eligibility turns on details most employers would not think to mention: how long someone has already worked for you, whether they have an EHCP, whether they were care experienced, how long they were claiming before they started.
Tell us who you are thinking of taking on and we will tell you every payment they trigger, not just the obvious one. There is no charge for that and no obligation afterwards.
Incentive amounts, eligibility and start dates are set by government and change. Figures correct at the time of writing. We will confirm the current position for your specific circumstances before you commit to anything.
No cost, no obligation, no hard sell. We will tell you straight if an apprenticeship is not the right answer.
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