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.
£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.
Business West delivers the Local Skills Improvement Plans (LSIPs) for West of England and North Somerset, Swindon and Wiltshire, Gloucestershire and Somerset. We consistently highlight the importance of education and training providers, businesses and local authorities working together to develop solutions that meet the needs of young people and local businesses. There is not one single intervention that will solve challenges like this one, but with continued collaboration we can make progress towards a stronger skills landscape that supports the local economy. The upcoming Milburn ‘Young People and Work’ report, due to be published later this year will also be particularly important in highlighting recommendations for action
In terms of businesses and education working together, recent announcements by firms such as Sainsbury’s and Morrisons are encouraging.
Sainsbury’s has announced a new Modern Work Experience Programme creating approximately 10,000 opportunities over the next year, with a particular focus on communities where young people face greater barriers to entering work.
Morrisons has also announced its Proper Jobs: Fresh Start programme, offering 1,000 fully funded apprenticeships for young people by 2030, combining real workplace experience, qualifications and a route into longer-term careers.
Employers have a vital role to play in improving the skills landscape, but it’s not a task for them alone. The LSIPs give us a platform for understanding skills needs of local businesses, but also to help make connections happen between those organisations that can make a difference.
If you’d like to find out more about how we can work together, get in touch with the LSIP team here.
Read more about the latest LSIPs here.