For most employers, the training costs nothing

The rules changed on 1 August 2026. If you do not pay the apprenticeship levy and your apprentice is aged 16 to 24 when they start, the government funds 100% of the training and assessment, up to the funding band for the standard. You pay nothing. The same applies to levy-paying employers whose levy funds have run out. On top of that, non-levy employers can now be paid for taking on a young apprentice. An eligible employer can receive up to £6,000 in payments, and pays no employer National Insurance on an apprentice’s eligible earnings while they are under 25.

£0
training cost for a 16 to 24 year old at a non-levy employer
£2,000
hiring payment for a new apprentice aged 16 to 24, from 1 October 2026
5%
what a non-levy employer pays for an apprentice aged 25 or over
Up to £6,000
payments an eligible employer can receive

What you pay

Your situation Apprentice aged 16 to 24 Apprentice aged 25 or over
You do not pay the levy (annual pay bill under £3 million) Nothing. Government pays 100% up to the band 5%. Government pays 95%
You pay the levy and have funds in your account Paid from your levy funds Paid from your levy funds
You pay the levy but your funds have run out Nothing. Government pays 100% up to the band 25%. Government pays 75%

Costs above the funding band maximum are paid by the employer. None of our standards are priced above their band.

What you can claim

£2,000 apprenticeship hiring payment
Non-levy employers, for each new apprentice aged 16 to 24 who joined you within the 90 days before the apprenticeship starts. Applies to starts from 1 October 2026. Paid in two instalments, the first after 90 days.
£1,000 young apprentice payment
For apprentices aged 16 to 18, or 19 to 24 with an education, health and care plan or experience of local authority care. Paid to the employer, with a matching £1,000 to the training provider.
£3,000 Youth Jobs Grant
Paid by the Department for Work and Pensions where you recruit, through Universal Credit, an 18 to 24 year old who has been unemployed and on Universal Credit for six months or more. The job must be at least 25 hours a week for at least four months. Paid £1,800 after six weeks and £1,200 after 18 weeks. Can be claimed alongside the apprenticeship payments.
No employer National Insurance
On eligible earnings for apprentices under 25.
£2,000 foundation apprenticeship payment
For 16 to 24 year olds on a Level 2 foundation apprenticeship. We do not currently deliver foundation apprenticeships; included so the list is complete.
£3,000 care leaver bursary
Paid to the apprentice, not the employer, where they are a care leaver or in care and under 25.

If you pay the levy

Employers with an annual pay bill over £3 million pay the levy and draw training costs from their apprenticeship service account. Two things changed on 1 August 2026: the 10% government top-up on new contributions has stopped, and new funds now expire after 12 months instead of 24. Funds that entered your account before 1 August 2026 keep the 24-month expiry. The practical effect is that unspent levy disappears faster, so plan starts earlier in the year. Levy payers can transfer up to 50% of their annual funds to another employer. If you do not pay the levy, a transfer can cover your apprentice in full. Several NHS trusts and large employers transfer to organisations in their supply chain or area. We can help you find a transfer and set it up.

Our apprenticeships and their funding bands

Apprenticeship Level Funding band Typical length
Ambulance Support Worker 3 £7,000 13 months
Associate Ambulance Practitioner 4 £15,000 15 months
Dental Nurse 3 £8,000 18 months
Oral Health Practitioner 4 £9,000 14 months
Pharmacy Services Assistant 2 £5,000 13 months
Pharmacy Technician 3 £8,000 24 months
Senior Healthcare Support Worker 3 £9,000 24 months
Lead Adult Care Worker 3 £4,000 18 months
Leader in Adult Care 5 £7,000 18 months

Three worked examples

A dental practice takes on a 19-year-old trainee
Non-levy employer, new hire, Level 3 Dental Nurse (£8,000 band). Training cost to the practice: £0. Hiring payment: £2,000. No employer National Insurance on eligible earnings until the apprentice turns 25. The practice is paid £2,000 to train someone to GDC registration.
A care provider puts a 34-year-old team leader on Lead Adult Care Worker
Non-levy employer, existing staff, £4,000 band. The employer pays 5%: £200 across the 18-month programme, usually in instalments. The government pays £3,800. No hiring payment, because the person is not a new recruit.
A pharmacy recruits an 18-year-old through the Jobcentre
Non-levy employer, candidate on Universal Credit for seven months, Level 3 Pharmacy Technician (£8,000 band). Training cost: £0. Hiring payment: £2,000. Young apprentice payment: £1,000. Youth Jobs Grant: £3,000. Total received: £6,000, plus the National Insurance saving.

What we do about the funding

You do not need to understand any of this to take on an apprentice. We check which payments you qualify for, set up your apprenticeship service account if you do not have one, reserve the funding, and tell you what to claim and when. If a rule changes during the programme, we tell you.

Other changes worth knowing

  • Level 7 (master’s level) apprenticeships are no longer funded for anyone aged 22 or over from 1 January 2026. None of our programmes are affected.
  • The minimum apprenticeship length is now 8 months. Our shortest programme is 13 months.
  • Apprentices aged 19 and over no longer need to hold or achieve English and maths qualifications to complete, since 11 February 2025. The Level 3 Pharmacy Technician standard still requires them on entry.
  • Responsibility for apprenticeships moved from the Department for Education to the Department for Work and Pensions on 1 April 2026.
Want to know what you would pay?
Tell us the role, the person’s age and whether you pay the levy. We will send you the figures the same day. Call 01325 609030. Contact us Our apprenticeships

Figures correct at 25 October 2026 and taken from the apprenticeship funding rules 2026 to 2027 and GOV.UK employer guidance: growth and skills levy and employer incentives, non-levy incentive for hiring a young apprentice and the Youth Jobs Grant employer FAQ. Rules change; we will update this page when they do.

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