Funding for apprenticeships

Financial support to help recruit and train your apprentice

Taking on an apprentice can be a cost-effective way to develop the skills your organisation needs. Depending on your organisation and the apprentice you recruit, government funding may cover some or all of the training costs. You may also be eligible for additional payments designed to help you support some apprentices in the workplace.

At a glance

£1,000

An additional employer payment of £1,000 is available for employers supporting apprentices aged 16 to 18, or certain eligible apprentices aged 19 to 24.

Up to £2,000

Employers who recruit and support an eligible foundation apprentice may receive up to £2,000. The final payment depends on progression to another apprenticeship.

£2,000

For non-levy employers recruiting an eligible new apprentice aged 16 to 24 from 1 October 2026, a hiring payment of £2,000 is available.

Up to £3,000

A separate government Youth Jobs Grant is accessible for employers recruiting an eligible person aged 18 to 24 through the Department for Work and Pensions scheme.

100%

From 1 August 2026, apprentices aged 16 to 24 who start with an employer that does not pay the Apprenticeship Levy have 100% of training costs covered.

19+

Flexible apprenticeship units are short, targeted training for eligible employees aged 19 or over, with full funding available to non-levy employers up to the published funding rate.

Check the detailed criteria

Who qualifies for the £1,000 additional employer payment?

Employers can receive £1,000 to support an apprentice if, at the start of their apprenticeship training, the apprentice is:

aged 16 to 18
aged 19 to 24 and has an Education, Health and Care Plan
aged 19 to 24 and is, or has previously been, in local-authority care.

The payment is made through the training provider in two instalments. For most apprenticeships, employers receive £500 after 90 days and £500 after 365 days. The apprentice must remain employed and undertaking their apprenticeship when each payment becomes due. The funding can be used towards costs linked to supporting the apprentice, including equipment, travel, uniform or other workplace support.

How does the foundation apprenticeship incentive work?

Employers recruiting an eligible foundation apprentice can receive up to £2,000. Eligible foundation apprentices include people who are:

aged 16 to 21
aged 22 to 24 and have an Education, Health and Care Plan
aged 22 to 24 and are, or have previously been, in care
aged 22 to 24 and are a prisoner or prison leaver.

Foundation apprenticeships are available in areas including construction, engineering and manufacturing, health and social care, digital, catering and hospitality, and retail. The payment is made in three stages: £667 after 90 days, £667 after 242 days, £666 as a progression payment. The final £666 is only payable if the apprentice:

completes their foundation apprenticeship
starts another apprenticeship with the same employer within six months
remains on that apprenticeship for at least 90 days.
Employers may therefore receive less than the full £2,000 if the progression conditions are not met.

Who qualifies for the £2,000 apprenticeship hiring payment?

From 1 October 2026, employers that do not pay the Apprenticeship Levy can receive £2,000 when they recruit an eligible new apprentice aged 16 to 24. To qualify:

the apprentice must be aged 16 to 24 at the start of training
the apprenticeship must start on or after 1 October 2026
the apprentice must not have been employed by the employer for more than 90 days before starting their apprenticeship training
the apprentice must be included in the PAYE scheme connected to the employer’s apprenticeship service account.

The payment is made through the training provider in two £1,000 instalments. For most apprenticeships, payments are generated after 90 days and 365 days. The apprentice must remain employed and in learning when each payment becomes due.

How does the Youth Jobs Grant work?

The Youth Jobs Grant is a separate Department for Work and Pensions employment scheme. Employers of any size may be able to receive up to £3,000 when they recruit an eligible person aged 18 to 24. The young person must:

be aged 18 to 24
be claiming Universal Credit
have been out of work, education or training for at least six months
meet the Department for Work and Pensions’ eligibility requirements.

Employers must apply to join the scheme and register an eligible vacancy before recruitment takes place. An employer cannot recruit someone independently and then claim the grant retrospectively. Eligible jobs must:

provide at least 25 hours of paid work each week
be available for at least 16 weeks
pay at least the appropriate minimum wage
not replace an existing employee, apprentice or contractor
not consist of 50% or more online training

The grant is paid in two stages, subject to the employment and earnings being verified: £1,800 following the six-week check, and £1,200 following the 18-week check. Employers must also meet the scheme’s organisational eligibility requirements, including operating PAYE and passing the relevant Department for Work and Pensions checks.

Fully funded apprenticeships for people aged under 25

Available from 1 August 2026

Employers that do not pay the Apprenticeship Levy will have 100% of the training and assessment costs covered when they recruit an apprentice aged 16 to 24. Funding is available up to the apprenticeship’s maximum funding band. Employers are responsible for any costs agreed with the training provider above that amount.

Apprentices must be aged 16 to 24 at the start of their apprenticeship.
Applies to non-levy employers.
Eligible apprenticeships starting on or after 1 August 2026.

Apprenticeship units

Available from 28 April 2026

Approved apprenticeship units are short, targeted training programmes based on parts of existing apprenticeship standards. They allow employers to develop specific workforce skills without an employee completing a full apprenticeship.

Available to eligible employees aged 19 or over.
Offered in selected skills areas.
Levy-paying employers can use funds from their apprenticeship service account.
Training for non-levy employers is fully funded up to the unit’s published funding rate.
An employee cannot undertake an apprenticeship or another apprenticeship unit at the same time.
Availability will depend on the apprenticeship units offered by Barnsley College.

You may qualify for more than one payment

Some apprenticeship payments can be combined where the employer, apprentice and apprenticeship meet the conditions of each scheme.
The Youth Jobs Grant may also be combined with eligible apprenticeship payments, including the £1,000 additional employer payment, the foundation apprenticeship incentive and the £2,000 apprenticeship hiring payment for non-levy employers.

Employers must declare other public funding and cannot use two sources of public funding to cover the same costs. Barnsley College will confirm eligibility for apprenticeship-related payments during the onboarding process. The Youth Jobs Grant is administered separately by the Department for Work and Pensions, which makes the final decision on employer, candidate and vacancy eligibility.

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