From 1 August 2026 the government pays the full training cost of an apprentice aged 16 to 24. It applies to any employer that does not pay the apprenticeship levy. That is most small businesses in the UK, and very few of them are talking about it.
The change is part of the Growth and Skills Levy. That is the reform of the old apprenticeship levy.
01What the numbers were, and what they are now
A small employer used to pay 5% of an apprentice's training cost. The government paid the other 95%.
According to gov.uk, that 5% is now zero for an apprentice aged 16 to 24. The funding covers training and assessment. It runs up to the funding band maximum for the standard being taught.
The old split still applies to an apprentice aged 25 or over. So the age of the person you hire now changes what the hire costs.
02A payment of up to £2,000 follows in October
There is a second change behind the first one.
According to gov.uk, an employer outside the levy can receive up to £2,000 from October 2026. The apprentice has to be aged 16 to 24. The money is paid in two instalments, not as one lump sum. The first falls due once the apprentice has been in post for 90 days.
The Department for Education is asking employers to check the PAYE details in their employer account before 1 October. Out of date details hold the payment up.
One point needs care. Two government pages describe the start date rule differently. An employer should confirm which starts qualify with their training provider.
03Why it matters for a small employer this autumn
Training was rarely the reason a small business decided against an apprentice. Wages, tools, workspace and supervision time were.
Those costs land in the first weeks. The hiring payment does not arrive until day 90 at the earliest. So the gap has to be funded from somewhere.
That is the question worth answering before a job is advertised, not after. Our guide on how the Growth and Skills Levy works for small employers sets out what is covered, what is not, and how the dates fall.
