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Recruiting the right people and developing the skills your business needs can be challenging, particularly for smaller employers.
New government funding changes are designed to make it easier for businesses to recruit young apprentices, while also providing additional support for young people who may face financial barriers when starting their careers.
From fully funded training for eligible apprentices under 25 to a new household bursary, the changes could open the door for more employers and young people to benefit from apprenticeships.
Here is what you need to know.
More support for employers recruiting under-25s
From 1 August 2026, apprenticeship training will be fully funded for eligible apprentices under the age of 25.
For levy-paying employers, available levy funds will continue to be used first. However, when those funds have been exhausted, the government will cover the training costs for eligible apprentices under 25 rather than requiring the employer to make the previously proposed 25% co-investment contribution.
For smaller employers that do not pay the levy, the new support could also make recruiting and training a young apprentice more affordable.
This gives businesses a valuable opportunity to bring in new talent without apprenticeship training costs becoming an unnecessary barrier.
It could be particularly helpful for employers looking to:
- Recruit into entry-level or hard-to-fill positions
- Develop skills around specific business needs
- Build a future talent pipeline
- Plan for succession within their workforce
- Create sustainable employment opportunities locally
Helping more young people access apprenticeships
The government has also announced a new apprenticeship bursary worth up to £4,500 per year, per household.
The bursary is being introduced to support a small number of Universal Credit households that could otherwise become financially worse off when a young person starts an apprenticeship.
While an apprentice earns a wage, the change in household circumstances can sometimes result in a reduction in benefits. In some cases, this can create a difficult choice for young people and their families, even when an apprenticeship offers a clear route into a long-term career.
The new bursary is intended to reduce this financial pressure, helping more young people take up apprenticeship opportunities without placing their household at a disadvantage.
The final bursary amount, detailed eligibility criteria and application process will be confirmed by the government in due course.
Additional support for smaller businesses
Further support is also expected to be available for smaller employers recruiting younger apprentices.
The government has announced that eligible SMEs could receive up to £8,000 in overall support when recruiting an apprentice under 25. This package includes fully funded training, a £2,000 hiring bonus from October 2026 and National Insurance contribution relief for eligible apprentices.
For smaller businesses, where every recruitment decision matters, this support could make it more realistic to invest in someone at the beginning of their career.
However, the value of an apprentice goes beyond the financial incentives.
Apprenticeships can help you grow your own talent
Finding someone who already has every skill your business needs is not always easy.
An apprenticeship gives you the opportunity to develop an employee around the role, your working practices and your organisation’s longer-term goals.
A young apprentice can bring fresh ideas and enthusiasm into the workplace while learning from experienced colleagues. With the right support, they can grow into a skilled and valuable member of the team.
Apprenticeships can support businesses across a wide range of areas, including business administration, customer service, digital and IT, engineering, manufacturing, logistics and project management.
They can also help employers strengthen retention, address skills shortages and build a workforce that is prepared for the future.
Start with the needs of your business
Recruiting an apprentice should not simply be about filling a vacancy.
The strongest apprenticeship programmes begin with a clear business need.
Consider where your organisation needs additional capacity, which skills are becoming harder to recruit and where you may need future managers or technical specialists.
From there, the right apprenticeship programme can be matched to the role and the development needs of both the apprentice and the business.
Even when you are not ready to recruit immediately, starting the conversation early can help you understand the funding, plan the role and identify the right programme.
How WS Training can support you
WS Training has been delivering apprenticeships in Suffolk since 1996, supporting local employers to recruit new talent and develop their existing workforce.
We work closely with employers throughout the apprenticeship journey, from understanding the needs of the business and choosing the right programme to onboarding the apprentice and monitoring their progress.
Whether you are considering recruiting your first apprentice or planning to expand an existing programme, our team can help you understand how the new funding changes may apply to your organisation.
Speak to the WS Training apprenticeship team to explore the opportunities available.
