What are the benefits of taking on an apprentice?
In an increasingly competitive business environment, attracting, retaining and developing talented employees is key to long-term success. Investing in workforce development not only helps organisations address skills shortages but also creates a more engaged, productive and customer-focused workforce.
Apprenticeships can strengthen organisational culture, improve productivity and engagement, and support better business outcomes. Off-the-job training is delivered flexibly and is designed to develop the knowledge, skills and behaviours required by the apprenticeship standard. This ensures apprentices achieve occupational competence while continuing to contribute to your organisation.
By combining practical workplace experience with structured learning, apprenticeships help businesses build capability, address critical skills gaps and create a skilled workforce equipped to meet current and future challenges.
Recruit
Attract fresh talent through entry-level apprenticeships while strengthening long-term growth and building a sustainable pipeline for the future.
Upskill
Develop your existing employees through apprenticeships that combine practical training with recognised professional qualifications.
Retain
Support your top talent by creating a more engaged, motivated and supported workforce, helping to improve satisfaction, strengthen loyalty, and reduce staff turnover over the long term. Apprenticeships increase productivity, performance and long-term business success.
92%
of companies that have taken on apprentices believe this leads to a more motivated and satisfied workforce*
86%
said apprenticeships helped them develop skills relevant to their organisation*
80%
have seen a significant increase in employee retention*
How does apprenticeship funding work?
Whether you’re a large organisation or a small-to-medium enterprise, a range of government funding and support is available to help you.
The funding available for apprenticeship training depends on several factors, including whether your organisation pays the Apprenticeship Levy, the apprenticeship programme, and the age and individual circumstances of the apprentice.
Non-levy business
Employers who have an annual payroll of less than £3 million.
The government will pay 100% of the apprenticeship fees (up to the funding band maximum) if the apprentice is:
- aged 16 to 24
- aged 15 (if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
For all other apprentices, employers will pay 5% towards the cost of training. The government will pay the rest (95%) up to the funding band maximum. This will be paid directly to the training provider.
Levy business
Employers who have an annual payroll of more than £3 million.
The Apprenticeship Levy is a 0.5% payroll tax on businesses, which is used to fund apprenticeship training across the UK. Once an employer has created an apprenticeship service account, the levy funds will automatically enter their account.
After 12 months, funds become unavailable to use and are removed from accounts.
If an employer has already used all their funds, the government will contribute towards the cost of training and assessing an apprentice.
Levy transfers
Employers who pay the levy tax can transfer unused funds in their account to any number of other employers, for any number of apprenticeships.
Employers can transfer unspent levy funds through their apprenticeship service account and can specify the amount of funds available for transfer. Employers can also define the criteria of the apprenticeship they wish to support.
Financial incentives for employers
These incentives are designed to reduce the cost of hiring and training young people, helping employers build stronger teams, close skills gaps and plan for long-term succession.
From 1 October 2026, eligible SMEs can receive a £2,000 hiring payment when they recruit 16–24-year-old apprentices as new employees who have joined within the previous three months.
This initiative is part of wider Government reforms to increase young apprenticeship starts. Hiring young talent brings fresh ideas, energy and long-term value to your business.
You can get £1,000 to support your apprentice in the workplace if, at the start of their apprenticeship training, they are one of the following:
- 16 to 18 years old
- 15 years old (if the apprentice’s 16th birthday is between the last Friday of June and 31 August)
- 19 to 24 years old with an education, health and care (EHC) plan
- 19 to 24 years old and have been in care
Employers are exempt from paying National Insurance contributions for apprentices under 25 earning under £50,270 annually.