There’s never been a better time to invest in apprenticeships. More funding is now available to employers than ever before – especially for small businesses. In many cases, the government will cover most or even all of the training costs. And if you take on an eligible apprentice, you might also qualify for a £1,000 incentive payment.

Who Can Get the £1,000 Incentive?

You can claim a £1,000 incentive if your apprentice is:

• Aged 16 to 18, or
• Aged 19 to 25 and either has an Education, Health and Care Plan (EHCP) or has been in the care of their local authority

✅ Note: The £1,000 incentive still only applies to 16–18-year-olds (and those 19–25 with an EHCP or care background), even though training may be fully funded for others.

Have You Set Up Your Digital Apprenticeship Service (DAS) Account?

A DAS account is your online hub to:

• Manage apprenticeship funding
• Track training progress
• Receive incentive payments
• Transfer levy funds if eligible

READ MORE HERE

It’s essential for any employer planning to take on apprentices.

See our blog about the Digital Apprenticeship Service Here –

How Does Apprenticeship Funding Work?

For Small Employers (Under 50 Employees)

Apprentices aged 16 to 21: The government will cover 100% of training costs.

Apprentices aged 22 and over: You’ll pay 5%, and the government covers 95% of training costs.

In all cases, you still pay the apprentice’s wages.

For Larger Employers (50+ Employees)

All employers pay 5% of training costs, regardless of apprentice age.

The government pays the remaining 95%, up to the funding band maximum.

Levy-Paying Employers (Wage bill over £3 million)

You pay 0.5% of your pay bill into a levy fund.

The government adds a 10% top-up to your digital account.

You can transfer up to 25% of unused funds to other employers.

Once your levy funds are used, you pay the standard 5% co-investment rate, just like non-levy employers.

🚀 New Government Reforms: What You Need to Know

Under the latest apprenticeship reforms led by Rishi Sunak:

• Apprentices aged 16 to 21 at small firms are now eligible for full government funding of their training costs.
• The £1,000 incentive remains for eligible apprentices aged 16–18.
• Employers with 50+ staff or hiring apprentices aged 22+ continue to pay 5% toward training.

These updates are designed to empower small businesses and give young people more accessible routes into skilled careers.