The government has announced significant changes to apprenticeship funding with the aim of making apprenticeships more accessible for young people and easier for employers to offer.

Employers were previously required to contribute approximately 5% towards apprenticeship training costs through the co-investment model if they did not pay the Apprenticeship Levy, with government funding the remaining 95%.

From this August, apprenticeship training has become fully funded for young people under the age of 25, removing employer contributions for non-levy employers and levy-paying employers who have exhausted their levy funds. You can view the updated apprenticeship funding guidance on the government website.

The government has also introduced a new apprenticeship bursary of up to £4,500 per year per household to help remove some of the financial barriers that prevent some young people from Universal Credit households from taking up apprenticeship opportunities. The apprenticeship bursary will be funded through the £1 billion additional investment announced in May 2026 to the Growth and Skills Levy.

From October, the government is launching a £2,000 hiring bonus for small and medium-sized enterprises taking on under-25 apprentices. These incentives align with those announced earlier this year, such as the £3,000 Youth Jobs Grant, introduced to support and incentivise employer engagement by removing financial barriers. Employers will be able to stack these, receiving up to £8,000 of support if they qualify for multiple incentives.