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Funding Information

Apprenticeship Funding

With significant changes to apprenticeship funding in 2026, there are now more opportunities for employers – particularly smaller businesses – to access funded training and financial support when taking on young apprentices. 

We can help you understand what funding may be available, what you need to contribute and how to plan the apprentice’s training around your business. 

Apprenticeship funding rules vary according to the apprentice’s age, the employer’s circumstances and the apprenticeship standard. Always check eligibility with us before making recruitment or funding decisions.

What apprenticeship funding is available

> 100% funded training for eligible apprentices aged 16–24

Apprenticeship training and assessment can be fully funded for eligible apprentices aged 16 to 24, including for employers who do not pay the Apprenticeship Levy. 

This means eligible employers can potentially recruit a young apprentice without having to make the usual employer contribution towards apprenticeship training costs. 

Funding is subject to the relevant apprenticeship funding band and the government funding rules. 

For employers, this means: 

  • You can recruit an apprentice aged 16–24 and potentially have their training and assessment fully funded. 
  • You still employ and pay the apprentice. 
  • The apprenticeship must be an approved apprenticeship programme. 
  • The training must be delivered by an approved apprenticeship provider.
  • Funding does not cover the apprentice’s wages or every cost associated with employing an apprentice.

> £2,000 apprenticeship hiring payment for eligible smaller employers

From 1 October 2026, eligible employers that do not pay the Apprenticeship Levy may be able to receive a £2,000 hiring payment when recruiting a new apprentice aged 16 to 24.

The apprentice must meet the eligibility requirements and, for the new hiring payment, must have started their job with the employer within the previous three months.

The payment is made in two instalments, with the first becoming available after the apprentice has completed their first 90 days. We administer the payment and pass it on to you where the eligibility requirements are met.

This is particularly relevant to:

  • Small and medium-sized businesses
  • Employers who do not pay the Apprenticeship Levy
  • Businesses recruiting their first apprentice
  • Employers looking to grow their workforce through young talent

> Up to £2,000 for eligible Foundation Apprenticeships 

Employers may also be eligible for an employer incentive of up to £2,000 where an apprentice is undertaking an eligible Foundation Apprenticeship. 

Foundation Apprenticeships are designed to provide an entry-level route into employment and are currently available in areas including: 

  • Construction and the built environment 
  • Engineering and manufacturing 
  • Health and social care 
  • Digital 
  • Catering and hospitality 
  • Retail, service, supply and administration 

Eligibility for the employer incentive depends on the apprentice’s circumstances. For example, eligible apprentices may be aged 16–21, or aged 22–24 where specific circumstances apply, such as having an Education, Health and Care Plan (EHCP) or having been in care. 

The payment can help employers with employment-related costs such as equipment, travel or uniform.

> Additional financial support

The apprenticeship package introduced for 2026 also sits alongside other employer support. 

For example, the Youth Jobs Grant can provide £3,000 to eligible employers who recruit an 18–24-year-old who has been claiming Universal Credit for more than six months. 

Employers may also benefit from National Insurance contributions relief when employing eligible apprentices under 25. 

The exact combination of support available depends on the apprentice, employer and circumstances. 

What if I pay into the Apprenticeship Levy?

If your organisation has an annual pay bill of more than £3 million, you normally pay the Apprenticeship Levy. 

Your levy funds can be used towards approved apprenticeship training and assessment. 

From 2026, the Growth and Skills Levy provides employers with greater flexibility over how apprenticeship funding can be used. 

If you have insufficient funds in your apprenticeship service account, different government contribution arrangements apply depending on the apprentice’s circumstances. For eligible apprentices aged 16–24, government funding can cover the full training and assessment cost up to the relevant funding band maximum. 

Each apprenticeship is allocated to a funding band, currently ranging from £1,500 to £27,000. The funding band represents the maximum amount of government or levy funding that can be used towards the apprenticeship training and assessment. 

If the agreed training price exceeds the applicable funding band maximum, the employer is responsible for the difference. 

What is off-the-job training?

Off-the-job training is a statutory requirement of an English apprenticeship – your apprentice needs protected time during their working hours to learn. 

It is training undertaken by the apprentice during their normal working hours that is designed to develop the knowledge, skills and behaviours required by their apprenticeship. 

It is not simply a day away from work. The training must be relevant to the apprenticeship and contribute towards the apprentice becoming occupationally competent. 

This might include: 

  • Training sessions with their tutor 
  • Workshops 
  • Practical training 
  • Online learning 
  • Structured learning activities 
  • Tutorials 
  • Learning activities delivered in the workplace 
  • Assignments and other planned learning activities 

The exact activities and amount of off-the-job training depend on the apprenticeship standard and the apprentice’s individual learning plan. 

How much off-the-job training is required? 

For apprenticeships starting under the 2026/27 rules, the minimum volume of off-the-job training is published against the individual apprenticeship standard on the Skills England system. 

We ensure that the apprentice receives at least the published minimum volume, subject to the funding rules and any appropriate recognition of prior learning. 

When you recruit an apprentice, we’ll work with you to agree: 

  • The apprentice’s role 
  • Their working hours 
  • Their starting knowledge and skills 
  • The training they need 
  • The amount of off-the-job training required 
  • When that training will take place 
  • How the training will fit around your operational requirements 

The agreed arrangements should form part of the apprentice’s training plan. 

Does off-the-job training have to happen away from the workplace? 

“Off-the-job” does not necessarily mean “off-site”. Training can take place in the workplace, online or at the provider’s premises, provided it meets the requirements for eligible apprenticeship training. 

For example, an apprentice could undertake structured learning with a trainer at your workplace, complete a planned online learning activity or attend a training session at our centre. 

Does off-the-job training have to happen away from the workplace? 

“Off-the-job” does not necessarily mean “off-site”. Training can take place in the workplace, online or at the provider’s premises, provided it meets the requirements for eligible apprenticeship training. 

For example, an apprentice could undertake structured learning with a trainer at your workplace, complete a planned online learning activity or attend a training session at our centre. 

Can an apprentice do their training during working hours? 

Off-the-job training must take place during the apprentice’s normal working hours.  Apprenticeship training is part of the apprentice’s working time – it should not normally be added on as part of their working week.

What counts as off-the-job training? 

Examples of activities that may contribute towards an apprentice’s off-the-job training include: 

  • Provider-led training – Structured sessions delivered by an apprenticeship trainer or tutor. 
  • Workplace learning – Planned learning activities undertaken in your workplace that develop the apprentice’s occupational knowledge and skills. 
  • Practical training – Hands-on activities designed to develop the occupational competencies required by the apprenticeship. 
  • Online learning – Structured digital learning that forms part of the apprenticeship programme. 
  • Workshops – Sessions designed around specific knowledge, skills or behaviours within the apprenticeship standard. 
  • Assignments and independent learning – Planned learning activities that form part of the apprenticeship programme and contribute towards the apprentice’s development. 

We support you to ensure that the training is eligible and for maintaining the required evidence of delivery.

What does NOT normally count? 

Normal productive work, routine duties and ordinary business activity should not be recorded as off-the-job training. Similarly, activities such as general induction, progress reviews and other non-training activities cannot automatically be counted towards the required training. 

We’ll help you distinguish between normal productive work and genuine apprenticeship learning. 

What is the employer responsible for?

As an apprentice’s employer, you have an important role in making the apprenticeship successful. 

  • Give the apprentice time to learn – Make sure the apprentice can attend planned training and complete their learning within their working hours. 
  • Support workplace development – Give the apprentice opportunities to practise and apply what they learn. 
  • Work with the Etc. – Communicate regularly with us and take part in progress reviews. 
  • Provide a suitable working environment – Make sure the apprentice has the supervision, equipment and support needed to develop their skills. 
  • Support completion – Encourage the apprentice to keep up with their learning, assessments and evidence. 
  • Keep training protected – Avoid routinely replacing planned training time with productive work. 

We make the whole process easier for you as a business

We commit to support you to: 

  • Recruit –  Help you identify the right apprenticeship and understand the entry requirements. 
  • Plan –  Create a training plan that fits the apprentice’s role and your business. 
  • Train – Deliver the knowledge and skills your apprentice needs. 
  • Support – Keep you informed about progress and provide guidance when issues arise. 
  • Evidence – Maintain the required training records and evidence. 
  • Complete –  Support your apprentice through their final assessment and completion. 
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Funding information is subject to change

Apprenticeship funding is governed by government rules and eligibility criteria. Funding rates, employer incentives and programme requirements can change. 

The information on this page reflects the 2026/27 apprenticeship funding arrangements for England available at the time of publication. The latest government funding rules should always be checked before relying on a particular payment or funding arrangement. 

For the latest official information, employers can consult the GOV.UK apprenticeship funding guidance and GOV.UK guidance on getting funding for an apprentice.

In addition to apprenticeship funding there are a variety of grants that can support your business, such as CITB grants. The Etc. for Business team can talk you through your options with your business in mind.