New apprenticeship incentives announced for 2026
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What employers need to know
The government has confirmed a significant new package of employer incentives for apprenticeships in 2026, the largest seen in over a decade. These measures are designed to make it easier for businesses to recruit and develop young talent, while strengthening progression into long-term, skilled employment. At Access Training, we welcome these changes and are working closely with employers to help them maximise the opportunities available. What funding is available? Fully funded apprenticeship training for SMEs - For small and medium-sized employers, apprenticeship training can be fully funded depending on eligibility. This means businesses can recruit and train new talent without the burden of training costs, making apprenticeships one of the most cost-effective ways to grow a skilled workforce. There are four key incentives available to employers hiring apprentices: 1. Incentives for recruiting young apprentices – £1,000 (available now) Employers can receive £1,000 when recruiting: 16–18-year-olds 19–24-year-olds with an Education, Health and Care Plan (EHCP) or care experience. This funding is available to employers of all sizes and is designed to support early entry into the workforce. 2. Apprenticeship incentives for small businesses – £2,000 (from October 2026) Small and medium-sized employers who do not pay the apprenticeship levy can access £2,000 when hiring an additional apprentice aged 16–24. This will apply to those starting an apprenticeship from 1 October 2026, providing they’ve joined their employer within the previous three months. The first payment will be made once the learner has completed the first 90 days of their apprenticeship. 3. Youth Jobs Grant – £3,000 (from June 2026) This grant is available to employers hiring 18–24-year-olds who:
In addition, the Jobs Guarantee scheme is being expanded from ages 18–21 to 18–24. This provides subsidised wages for 25 hours per week for employers hiring young people who have been unemployed for 18+ months. While these schemes are not apprenticeship-specific, they can often be combined with apprenticeship incentives, increasing the overall value for employers. How these incentives work together These incentives are designed to create a clear progression pathway:
In many cases, employers may be able to combine incentives, depending on eligibility, further increasing the value of investing in new talent. What this means for employers This funding presents a strong opportunity to:
However, success will depend on clear planning, strong support, and a focus on progression, ensuring apprentices not only start but succeed. How Access Training can help At Access Training, we work in partnership with employers to:
If you are considering hiring an apprentice or want to understand how these incentives could benefit your organisation, our team is here to help. Get in touch today to discuss your recruitment plans and explore our free recruitment service. |
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