Apprenticeship funding in England (2026)

Navigating apprenticeship funding in England is essential for any organisation looking to invest in staff training, upskill existing team members, and build long-term retention.

Through various government schemes and incentives, financial support is available whether your organisation contributes to the growth and skills levy or qualifies for non-levy SME funding. Understanding how these schemes work will ensure you maximise the resources available to support your apprentices.

How does the Growth and Skills Levy affect apprenticeship funding in England?

Employers in England with an annual pay bill of over £3million are required to pay the growth and skills levy at 0.5% each month. Your levy amount can then be accessed to pay for 100% of apprenticeship training and assessment costs. In England, if your organisation pays the growth and skills levy, money held in your digital fund is available for you to spend on apprenticeship training. From 1 August 2026, new funds entering your account will expire after 12 months (funds paid in before this date expire after 24 months).

If you do pay the growth and skills levy, you will be able to access these funds to spend on training and assessing your apprentices. As of 1 August 2026, the government will no longer pay a top-up contribution. Levy funds will expire and be transferred to the government after 12 months (or 24 months if paid in before 1 August 2026), so it is important to use them.

Levy-payers who exhaust their levy funds can continue to run apprenticeship programmes by paying a 25% co-investment for new apprenticeship starts from 1 August 2026, with the government covering the remaining 75%.

 

Apprenticeship funding for non-levy and SME organisations

If your organisation does not pay the levy, your business will only need to pay 5% towards the cost of training and assessing your apprentice (if they are aged 25 or over). The government will pay the remaining 95%. This funding can be secured through the Apprenticeship Service and will be paid directly to the training provider your apprentice is studying with.

SMEs will receive 100% funding (no 5% co-investment required) for apprentices aged between 16 – 24 (or 15 in certain circumstances – see here for details).

You can read about this in more detail here.

 

Eligibility for apprenticeship funding in England

Apprenticeships can be used across all industries, types of organisations and for employees at all stages of their careers.

• Anyone over 16, living in England and not in full-time education can become an apprentice
• Employees can start an apprenticeship at the start of their career, if they want a career change, or if they’re upskilling in an existing job
• Individuals are still eligible for an apprenticeship even if they have a previous qualification (including a degree). However, an apprentice cannot already hold a qualification at the same level (or above) in the same area that their apprenticeship is in.

 

 Additional funding incentives for younger apprentices

Apprenticeships are a great way to attract new talent and offer a clear pathway for career development. There are a number of financial incentives available to employers who hire younger apprentices. These include:

• £1,000 young apprentice payment | Employers can receive £1,000 to support an apprentice aged 16-18 (or up to 24 years in certain instances) in the workplace. Learn more >
• £2,000 foundation apprenticeship payment | Businesses may be able to get up to £2,000 to support an apprentice aged 16 – 21 (or up to 24 years in certain instances) who is studying a foundation apprenticeship. Learn more >
• £2,000 SME apprenticeship initiative | From October 2026, non-levy paying employers will be able to get a payment of up to £2,000 when recruiting new apprentices aged 16-24. Learn more >
• £3,000 universal credit youth jobs grant | From June 2026, businesses can receive £3,000 for every person they recruit aged 18 – 24 who has been on Universal Credit for six months or more. Learn more >
• Zero national insurance contributions | For apprentices under the age of 25 earning below £50,270/year, employers are not required to pay national insurance contributions on their salary. Learn more >

Want to know more about the Milburn report and how apprenticeships can help to reduce NEET numbers? Check our long read >

Support from Mindful Education

Mindful Education provides flexible apprenticeships to employers in the public and private sectors. We offer tailored solutions based on your training needs. Working with our partners from the first day of the apprenticeship to the last, we ensure that learners and their employers are fully supported.

Our team can provide further support to your organisation on maximising the use of your levy funds and would be happy to answer any queries you may have. To find out more about how we can support your organisation with your apprenticeship needs or answer any questions, please email apprenticeships@mindful-education.co.uk