The UK Government has announced significant changes to apprenticeship funding designed to help more young people access high-quality training and employment opportunities.
From 1 August 2026, the government will provide 100% funding for the training and assessment costs of eligible apprentices aged 16 to 24, helping employers invest in the next generation of talent while reducing costs. The changes form part of a wider commitment to increasing opportunities for young people from all backgrounds through apprenticeships and the wider Growth and Skills offer.
What Is Changing?
Currently, when a levy-paying employer has exhausted its apprenticeship levy funds, it is required to make a contribution towards apprenticeship training costs.
However, from 1 August 2026, eligible apprentices aged 16 to 24 will be fully funded, meaning:
- Employer contribution: £0
- Government contribution: 100% of training and assessment costs
This applies to eligible new starts across:
- Apprenticeships
- Foundation Apprenticeships
- Apprenticeship Units
For employers looking to recruit and develop young talent, this provides a significant financial incentive to bring new apprentices into the workforce.
What Does This Mean in Practice?
Take a Customer Service Practitioner Level 2 Apprenticeship as an example, which has a funding band of £3,500.
Apprentice Aged 16-24
Following the changes from 1 August 2026:
- Employer contribution: £0
- Government contribution: £3,500
For levy-paying employers that have already exhausted their levy funds, this represents a saving of £875 compared to the previous co-investment model.
Apprentice Aged 25 or Over
From 1 August 2026:
- Employer contribution: £875 (25%)
- Government contribution: £2,625 (75%)
The Government’s previously announced co-investment rate remains unchanged for apprentices aged 25 and over.
It is important to note that these changes apply to new apprenticeship starts only. Existing apprentices already on programme will continue under their current funding arrangements.
Supporting Young People from All Backgrounds
Alongside changes to apprenticeship funding, the Government has also announced plans to introduce a targeted bursary for eligible young people.
The aim is to remove financial barriers that can prevent some young people from starting an apprenticeship. For certain households receiving benefits, taking up an apprenticeship can sometimes lead to reduced household income, creating a challenge for those wishing to progress into employment.
The new bursary is intended to help ensure that financial circumstances do not prevent talented young people from accessing apprenticeship opportunities and developing the skills employers need.
Further guidance on:
- eligibility criteria
- payment arrangements
- application processes
is expected from the Government in due course.
Additional Financial Support for Employers
For employers recruiting apprentices aged under 25, further support may also be available.
This can include:
- Hiring incentives and grants
- No employer National Insurance contributions for eligible apprentices under 25
- Access to fully funded training and assessment costs for eligible 16 to 24 year olds
The Government has published additional guidance on support available to employers:
What This Means for Employers
These changes present an excellent opportunity for organisations to strengthen their workforce while reducing training costs.
Apprenticeships remain one of the most effective ways to:
- Build future talent pipelines
- Address skills gaps
- Develop a skilled workforce
- Improve retention and progression
- Support young people into meaningful careers
With fully funded training now available for eligible apprentices aged 16 to 24, there has never been a better time for employers to consider investing in young talent.
Talk to Ginger Nut Training
At Ginger Nut Training, we support employers across England to recruit, train and develop apprentices in business, digital, marketing and leadership roles.
If you’d like to discuss how these funding changes could benefit your organisation, or explore apprenticeship opportunities for your team, we’d be happy to help.
https://gingernuttraining.co.