Hiring an apprentice: what you need to know
With significant financial incentives now available, there has never been a better time to hire an apprentice.
Since 1st August 2026, apprenticeship training costs are fully funded for all eligible under–25s. Combined with a range of new incentives to help businesses recruit and develop young talent, means it could be the right time to grow your workforce.
Our Skills Advisors, Barry Tugwood and Fiona Malpas, have created a guide to help employers navigate the apprenticeships landscape.
What is an apprenticeship?
An apprenticeship is a paid position that combines practical on-the-job experience with structured training, helping individuals develop the skills, knowledge and behaviours needed for a skilled career.
Financial incentives for employers
The information provided is accurate as of September 2026.
£3,000 Youth Jobs Grant (available now)
Available to employers recruiting an 18–24-year-old who has claimed Universal Credit for six months or more.
£2,000 Non-Levy Hiring Grant (from October 2026)
Available to small and medium-sized businesses (SMEs) recruiting a new apprentice aged 16–24.
£2,000 Foundation Apprenticeship Incentive
Additional support for employers recruiting young people who need preparation before progressing to a full apprenticeship.
£1,000 Young Apprentice Payment
Available when recruiting an apprentice aged 16–18 or 19–24 who has an Education, Health and Care Plan (EHCP), or is a care leaver.
Benefits of apprenticeships for employers
Apprenticeships can provide many tangible benefits for employers including:
Addressing your skills gaps
keyboard_arrow_down
Addressing your skills gaps
keyboard_arrow_down
Apprenticeships provide an excellent opportunity for businesses to tailor the position to address specific skills gaps or align with organisational goals.
They can be used to develop key leadership capabilities, strengthen technical expertise, or build talent pipelines in important departments. This enables employers to achieve a strong return on investment (ROI), while building a workforce with the skills and knowledge needed now and in the future.
Keeping your business competitive
keyboard_arrow_down
Keeping your business competitive
keyboard_arrow_down
Apprenticeships help businesses to drive innovation by bringing fresh perspectives, new skills and up-to-date industry knowledge gained through off-the-job training.
They can provide new ideas and often embrace emerging technologies, which helps businesses to stay competitive in their sector.
Increase productivity
keyboard_arrow_down
Increase productivity
keyboard_arrow_down
Apprentice outputs often exceed the costs incurred, delivering a net benefit to employers during training alone. According to the UK government, the estimated yearly gain for employers is between £2,500 and £18,000.
Through a combination of practical experience and structured learning, apprentices contribute to improved business performance and help organisations to develop a highly skilled workforce.
Boosting staff retention
keyboard_arrow_down
Boosting staff retention
keyboard_arrow_down
Apprenticeships can substantially boost staff retention by creating clear career pathways, and fostering greater loyalty to their employer. In 2024/25, the retention rate for apprenticeships was 66.7%.
Apprenticeships also help organisations develop talent internally, which reduces recruitment costs and creates a skilled workforce for the future.
Enhancing your reputation
keyboard_arrow_down
Enhancing your reputation
keyboard_arrow_down
Employers that invest in apprenticeships and other related training schemes can strengthen their reputation as employers of choice.
Enhancing your brand with recruiters and candidates can result in an increased ability to attract strong candidates for non-apprenticeship roles in addition to apprentices.
Additionally, businesses that recruit apprentices can play an important role in supporting young people who are not in education, employment or training (NEET), helping to address wider workforce and skills challenges.
Skills advisors
Through our research as part of the Local Skills Improvement Plans, many businesses have reported a lack of knowledge and confusion about the apprenticeship options available to them.
Our experienced skills advisors can help!
Book an online skills clinic to receive tailored support on how you can successfully integrate apprenticeships into your organisation. They can also help you identify workforce skills needs, tackle recruitment and training challenges, and plan for the future.
Following an initial 1-2-1 skills clinic, they will provide you with bespoke support tailored to your business needs.