Apprenticeship training costs (what you actually pay)

If your business is a non‑levy employer:

• Aged under 25: 100% of training costs funded by government (no contribution required)
• Aged 25+: Typically 5% contribution, with government covering 95%

More information:  Funding an apprenticeship for non levy employers

In practice, this means the main cost to you is salary, not training.

If your business is a levy payer:

• Training costs are funded from your levy account
• If funds are exhausted: Employer contribution rises to 25% from August 2026

The system is also changing to the Growth & Skills Levy, giving more flexibility (e.g. shorter or modular training).

More information: Funding an apprenticeship for levy payers

Wage and National Insurance costs

Minimum wage (April 2026 rates)

• Apprentice rate: £8.00/hour (applies if under 19 or in first year)
• After year 1 (age 19+) must move to age‑related minimum wage:
  • 18–20: £10.85/hour
  • 21+: £12.71/hour

Many employers choose to pay above this to aid recruitment.

More information: National Minimum Wage and National Living Wage rates - GOV.UK

Employer National Insurance

• 0% employer NICs for apprentices:
  • Under 25
  • Earning below £50,270

More information: Funding an apprenticeship for non levy employers

Current employer incentives

There is now a number of incentives, particularly focused on young people:

Core apprenticeship incentives

• £1,000 payment for hiring a 16–18-year-old (or eligible 19–24) apprentice

Additional / emerging incentives (2026–27)

• SME hiring incentive (expected Autumn 2026): Around £2,000 per apprentice for under‑25s
• Foundation apprenticeship incentive: Up to £2,000 depending on programme These can be combined, meaning total support per apprentice can be several thousand pounds.

More information: Employing an apprentice: Get funding for apprenticeship training - GOV.UK

Youth employment incentives

These sit alongside apprenticeships and can help de-risk recruitment:

Youth Jobs Grant

• £3,000 per hire
• For 18–24-year-olds on Universal Credit (6+ months)
• Designed to reduce recruitment costs

Jobs Guarantee Scheme (rolling out nationally in Autumn 2026)

• 6‑month roles for young people (18–21 initially)
• 100% of employment costs covered for:
  • 25 hours/week
  • At minimum wage
• Includes additional support for the individual
• Delivered through regional partners, with national rollout later this year

This is intended to be a risk‑free way to bring in entry-level talent, often converting into apprenticeships or permanent roles.

You can view the official guidance here:

• Jobs Guarantee (GOV.UK)
• Jobs Guarantee grant guidance

Learn more about hiring an apprentice

Visit the Employers section of the government's apprenticeship website for more information on hiring apprentices.

You can also contact the Business Support Team at Buckinghamshire Business First at [email protected] or on 01494 927130.