The Growth and Skills Levy: apprenticeship training paid for in full from August 2026
From 1 August 2026 the government covers the full training cost of an apprentice aged 16 to 24 at any employer outside the apprenticeship levy. Here is what it is worth, and what changes again in October.
Reading time5 min read
CategoryBusiness guides
Written byThe bizbritain team
If you have thought about taking on an apprentice, the price has just changed. From 1 August 2026 the government pays the whole training bill for an apprentice aged 16 to 24, provided you do not pay the apprenticeship levy. That is most small employers in the UK.
Section 01
What changed on 1 August 2026
Apprenticeship training used to come with a bill attached. A small employer paid 5% of the training cost and the government paid the other 95%.
For younger apprentices, that 5% has gone.
According to gov.uk, from 1 August 2026 the government covers all training and assessment costs for an apprentice aged 16 to 24. It applies if you do not pay the apprenticeship levy. It also applies if you do pay it and your levy funds have run out.
The change sits inside the Growth and Skills Levy, which is the reform of the old apprenticeship levy.
One limit is worth knowing. The funding runs up to the funding band maximum set for that apprenticeship standard. If a provider charges above the band, the difference is still yours to pay.
Section 02
Who qualifies, and what it is worth
Two things decide it. The age of the apprentice, and whether you pay the levy.
0%what you pay towards training for an apprentice aged 16 to 24, from 1 August 2026
5%what you pay towards training for an apprentice aged 25 or over
£2,000the most an employer outside the levy can get for a new young apprentice, from October 2026
2instalments the hiring payment arrives in, rather than one lump sum
For an apprentice aged 25 or over, the old split still stands. You pay 5% and the government pays 95%.
So the age of the person you hire now changes what the hire costs you. That is a new consideration, and it was not true before August.
A school leaver of 15 can count as 16 for this. Their sixteenth birthday has to fall between the last Friday of June and 31 August.
Section 03
The hiring payment, and the dates that decide it
There is a second piece of support, and it is newer than the training change.
According to gov.uk, from October 2026 an employer that does not pay the levy can receive up to £2,000 for recruiting an apprentice aged 16 to 24. It arrives in two instalments rather than as one payment.
Before 1 Oct
Check your PAYE details
The Department for Education asks employers to check that the PAYE details in their employer account are accurate before 1 October 2026.
✓Why it matters. Out of date details are named as a cause of delay to the payment.
1 Oct 2026
The scheme opens
This is the date the hiring payment starts operating. Training providers claim it and pass it on to the employer.
Does the start date of your hire fall on the right side of it?
Day 90
The first instalment
Half the payment is due once the apprentice has been in post for 90 days. The balance follows later in the apprenticeship.
✓Plan for the gap. The wage starts on day one. The money arrives months later.
One caution, and it is worth acting on. Two government pages state the start date rule differently. Ask your training provider which starts qualify before you fix a date with a candidate.
Section 04
What the funding does not cover
Free training is not a free hire. The wage is still yours, and so is everything the person needs in order to work.
The wage
Apprentices are employees and are paid as employees. This is usually the largest cost by a wide margin.
Tools and kit
Boots, hand tools, a laptop, a uniform. Small on their own, and they land in the first week.
Space and equipment
An extra pair of hands sometimes needs an extra bench, an extra chair or a second vehicle.
Supervision time
Somebody has to teach them. That is time your most experienced person is not billing.
The cash flow gap
The wage bill rises immediately. The hiring payment arrives from day 90 onwards.
None of that is a reason to skip the hire. It is a reason to plan the first six months properly.
This is where finance often gets discussed, and where a lot of owners stop. A bank turns down a modest equipment or working capital request, and the hire quietly gets shelved.
That can be a mistake. A broker can put the same deal to a wider range of lenders than a single bank will consider. bizbritain helps you work out what you need and find the lender most likely to say yes to it.
If you are sizing up a first apprentice this autumn, the training cost is the one part you no longer have to fund. Work out what the rest of it needs, then find out what you could borrow against it.
This guide is general information, not financial advice. Applications are subject to status, affordability and lender criteria.
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