Apprenticeships play a vital role in helping businesses grow, develop skilled workforces, and invest in future talent. They also provide life-changing opportunities for young people looking to build successful careers and gain valuable workplace experience.
Earlier this year, the Government announced a major new national initiative designed to create 200,000 new jobs and apprenticeship opportunities for young people, backed by £1 billion of additional investment. The reforms form part of a wider strategy to tackle youth unemployment, strengthen skills development, and support employers with recruiting and retaining talent.
One of the biggest changes for businesses is the removal of financial barriers that have historically made apprenticeships more difficult to access for smaller employers. Under the new reforms, the Government will now fully fund apprenticeship training costs for eligible under-25s at smaller businesses by removing the previous 5% co-investment requirement.
For employers, this creates an exciting opportunity to invest in new talent while significantly reducing recruitment and training costs.
Employer Incentive Payments
Businesses hiring apprentices may now be eligible for a range of financial incentives designed to support recruitment and workforce development.
£1,000 Apprentice Incentive Payment (Available Now)
Available for employers recruiting:
• Apprentices aged 16–18
• Apprentices aged 19–24 with an EHCP
• Apprentices aged 19–24 who are care leavers
£2,000 SME Incentive (Available from October 2026)
Available for employers recruiting:
• Apprentices aged 16–24
• New employees who joined the business within the last three months
• Full apprenticeship programmes only
£3,000 Universal Credit Hiring Incentive (Expected to launch in Autumn 2026)
Available for employers recruiting:
• Apprentices aged 18–24
• Individuals who have been receiving Universal Credit for six months or more
£2,000 Foundation Apprenticeship Incentive (Available Now)
Available for employers recruiting:
• Apprentices aged 16–21
• Apprentices aged 22–24 with an EHCP
• Apprentices aged 22–24 who are care leavers
Additional Savings for Employers
Employers also benefit from reduced staffing costs through National Insurance savings. Businesses do not pay Employer National Insurance Contributions for:
• Employees under the age of 21
• Apprentices under the age of 25
Incentives Can Be Combined
In some circumstances, employers may be able to combine multiple incentives.
For example, from October 2026, an SME employing an 18-year-old apprentice who has been claiming Universal Credit for more than six months could potentially receive:
• £1,000 apprentice incentive
• £2,000 SME incentive
• £3,000 Universal Credit incentive
Total Potential Support: £6,000
These changes represent a significant opportunity for employers to grow their teams, invest in future skills, and support young people into meaningful careers.
Our Business Development and Apprenticeship teams are here to help employers understand the available funding, eligibility criteria, and how apprenticeships can support workforce growth. To find out more about hiring an apprentice or accessing employer incentives, get in touch with our team today.
Tel: 01482 329943 | Email: BusinessDevelopment@hull-college.ac.uk or Apprenticeships@hull-college.ac.uk
