New £2,000 support could open the door for more employers to take on apprentices

28.09.2026

Finding the right skills is tough, and for many smaller employers, the cost of taking on an apprentice can make it feel out of reach.

From 1 October 2026, eligible non-levy-paying employers could receive up to £2,000 when they recruit a new apprentice aged 16–24, and that extra support could make it easier to bring new talent into your business and develop the skills you need for the future.

Could hiring an apprentice now be within reach?

An apprentice can bring fresh thinking and new skills into your business, while giving you the opportunity to develop someone around the work you do. But it can be difficult to know where to start or whether it will work for your budget.

That is where we can help.

We work with manufacturing and engineering employers throughout the apprenticeship journey, from finding the right person to delivering high-quality technical training shaped around the needs of industry.

You don’t need to have everything worked out. Whether you are ready to recruit or simply want to understand what is possible, our team can talk you through the options and help you find an approach that works for your business.

We can support you to:

• identify the right apprenticeship programme for your skills needs
• recruit new talent
• understand the funding and support that may be available
• develop a tailored recruitment, qualification and training plan
• deliver technical training through our Technology Training Centre, Technology Hub and network of local training providers.

Our programmes cover engineering, manufacturing, digital, mechatronics and other technical specialisms. If you'd like to know more, speak to our team.

What is changing from 1 October 2026?

The new £2,000 apprenticeship hiring payment will be available to eligible employers that do not pay the apprenticeship levy and recruit a new apprentice aged 16–24.

To qualify, the apprentice must start their practical training period on or after 1 October 2026, be linked to the employer’s apprenticeship service account and meet the relevant government eligibility requirements.

The payment will be made in three instalments during the apprenticeship, provided the apprentice remains employed at each payment stage.

What other support could your business receive?

Depending on the apprentice and the programme, you may also be eligible for:

• £1,000 for taking on an apprentice aged 16–18, or certain 19–24-year-olds who have been in care or have an education, health and care (EHC) plan
• up to £2,000 for eligible foundation apprenticeships
• a £3,000 Youth Jobs Grant for employers who hire an apprentice aged 18–24 who has been out of work and claiming Universal Credit for six months or more
• 100% government funding of apprenticeship training and assessment costs, up to the relevant funding band maximum, for eligible apprentices aged 16–24.

Funding and eligibility criteria apply. Our team can talk you through the support that may be relevant to your business, and employers should check the latest government guidance before recruiting.

Why consider an apprentice now?

For manufacturers, apprenticeships are a practical way to develop the technical capability needed in a changing industry.

They can help you:

• build a pipeline of future talent
• develop skills around your business needs
• bring new ideas and perspectives into the workplace
• strengthen technical and practical capability
• support long-term workforce planning

With more financial support becoming available, this could be the right time to explore whether an apprentice could work for your business – even if cost has previously put the idea out of reach.

Funding and eligibility criteria apply. The information above relates to apprenticeship funding in England and is based on current government guidance. Employers should check the latest GOV.UK funding rules to confirm their eligibility before recruiting.