We can support the growth and success of your business by helping you bring in fresh talent and develop your employees’ skills.
Whether you’re a large organisation or a small or medium-sized enterprise (SME), a range of government funding and support is available to help you invest in apprenticeships.
The amount of funding you receive depends on whether your organisation pays the apprenticeship levy. The government also provides additional financial support to help employers with apprenticeship training costs.
Levy paying employers
You are a levy‑paying employer if you have an annual payroll of over £3 million.
- You pay the apprenticeship levy at 0.5% of your annual payroll
- These funds are held in your Digital Apprenticeship Service (DAS) account
- You can use your funds to pay 100% of apprenticeship training and assessment costs
- If your levy funds are exhausted, the government will co‑fund training, with the employer contributing towards the remaining cost
Non levy paying employers (SMEs)
If your organisation does not pay the apprenticeship levy:
- Apprentices aged 16–24:
The government funds 100% of apprenticeship training and assessment costs - Apprentices aged 25 and over:
The government funds 95% and the employer pays 5% spread over the duration of the apprenticeship - In many cases, employer costs can be further offset through incentive payments and grants
Incentive payments and grants
Hiring young talent brings fresh ideas and strengthens an employer’s workforce, enabling them to develop the skills needed to meet the demands of the future.
| Payment | Age eligibility | Schedule |
| £1,000 additional payment for hiring apprentices | 16 to 18 (19 to 24 with EHCP or care leavers) | This is paid in two equal instalments, at day 90 and one year after apprenticeship started (or day 242 if apprenticeship under 12 months). |
| £2,000 foundation apprenticeship incentive | 16 to 21 (22 to 24 for apprentices with an EHCP, care leavers, or prisoners and prison leavers) | This is paid in three equal instalments, at day 90, day 242 (8 months) and the final payment when an apprentice progresses onto their next apprenticeship. |
| £2,000 new SME hiring incentive (from October 2026) | 16 to 24 | This is paid in two equal instalments at day 90 and day 365 (or day 242 if apprenticeship under 12 months). |
| £3,000 new Universal Credit hiring incentive (June 2026) | 18 to 24, if apprentice has been on universal credit for over 6 months | This is paid two instalments of roughly equal amounts at month 1 and month 3 (to be confirmed) |
| The Universal Credit hiring incentive is paid directly to employers by the Department for Work and Pensions. For the other incentives and payments above, the apprenticeship training provider claims them on behalf of the employer and then passes them on. | ||
If you’d like to find out more about apprenticeships and how STCG can support you, please get in touch by emailing business@stcg.ac.uk. Our team would be very happy to talk you through the funding options and explain how the process works.
