Can Employers Get Apprenticeship Grants?

If you are considering taking on an apprentice, one of the first questions most businesses ask is what financial support is available.

The good news is that in 2026, the combination of apprenticeship funding, government incentive payments, and sector-specific grants makes hiring an apprentice more financially accessible than at any previous point.

This guide explains exactly what is available, who qualifies, and how Total People can help you make sure you are not leaving money on the table.

What funding is available for apprenticeships?

Before looking at additional grants and incentive payments, it is worth understanding the baseline funding every employer can access.

Every business that hires an apprentice can receive government funding to cover the cost of training and assessment. The amount depends on whether your annual pay bill is above or below £3 million.

Levy-paying employers access their own Growth and Skills Levy funds, held in a digital apprenticeship service account, to pay for training directly. Non-levy employers benefit from government co-investment.

Until August 2026, the government funds 95% of training costs with the employer contributing 5%. From August 2026, non-levy employers hiring apprentices aged under 25 will receive 100% government funding for training, meaning the training itself costs you nothing.

This baseline funding is available for every funded apprenticeship regardless of sector, level, or business size. Find out more about how it works on our employer apprenticeship funding page.

Government incentive payments for hiring apprentices

On top of standard training funding, the government offers additional incentive payments to encourage employers to hire younger apprentices and support specific groups of learners.

£1,000 payment for 16 to 18-year-olds

Employers who hire an apprentice aged 16 to 18 are eligible for a £1,000 incentive payment, split across the programme. Training providers also receive £1,000 for the same cohort. The same payment applies to apprentices aged 19 to 25 who have an education, health and care plan (EHCP) or who have previously been in the care of their local authority.

New £2,000 incentive from October 2026

From 1 October 2026, the government is introducing a new incentive payment of up to £2,000 for non-levy paying employers who hire apprentices aged 16 to 24. The apprentice must have joined the employer within the three months before the apprenticeship start date.

This payment forms part of the government's wider drive to create 50,000 more apprenticeships for young people. Combined with fully funded training for eligible under-25s from August 2026, it means smaller businesses hiring a young apprentice this year could benefit from both zero training costs and an additional £2,000 payment.

Foundation apprenticeship employer payment

Employers taking on a foundation apprentice, a Level 2 programme for young people aged 16 to 21, can also receive up to £2,000 to support the costs of the placement. Foundation apprenticeships run for at least eight months and offer a practical entry point for young people who may not yet be ready for a full apprenticeship programme.

No employer National Insurance for under-25 apprentices

An often-overlooked benefit is the employer National Insurance exemption for apprentices under 25. Employers pay zero employer NI on the earnings of apprentices in this age group up to the upper secondary threshold. For businesses with multiple young apprentices, this represents a meaningful annual saving on top of all the funding and incentive payments already available.

Local authority apprenticeship grants

• Beyond national government incentives, local councils and combined authorities sometimes offer their own grants to support businesses in their area.

The Greater Manchester Combined Authority has previously operated grant schemes to support local businesses with apprenticeship costs and boost economic growth across the region. These local schemes change over time and are not always widely publicised, which is why speaking to someone who stays on top of what is currently available makes a real difference.

If you are based in Greater Manchester or Cheshire, our team can advise on any current local authority funding available to your business alongside the national incentives.

Industry-specific apprenticeship grants

Some sector bodies offer their own grants to businesses investing in training within their industry. The Construction Industry Training Board (CITB) is one of the most well-established examples, paying £2,500 per year per apprentice for attendance on approved construction apprenticeship programmes in England. In FY 2025/26, CITB provided £68 million in apprenticeship grants, supporting over 30,000 learners and more than 10,000 employers across the country.

Other industry boards and sector bodies operate similar schemes. Across all our apprenticeship sectors, we stay up to date with the grants and incentives that industry boards offer so you do not have to monitor them yourself.

How Total People helps you access funding and grants

Navigating apprenticeship funding can feel complicated, especially when incentives and rules change regularly. At Total People, our team stays on top of all current government incentives, local authority schemes, and industry board grants so you do not have to.

We can help you understand exactly what your business is entitled to, set up your apprenticeship service account, and make sure you are claiming every payment you are eligible for. Whether you are taking on your first apprentice or expanding an existing programme, we are here to make the process straightforward.

Get in touch with our team to find out which grants and incentives are available for your business, or explore our apprenticeships for employers pages to find out more about how we can support your growth.