Apprenticeship Grant for Employers of 16 to 24 year olds

The Growth and Skills Levy has replaced the apprenticeship levy and includes new foundation apprenticeships.

As an employer, you have to pay the Growth & Skills Levy if you:

• have an annual pay bill of more than £3 million
• are connected to any companies or charities for Employment Allowance purposes and have a combined annual pay bill of more than £3 million

The new levy will also allow funding for shorter apprenticeships, giving learners and employers greater flexibility over their training than under the existing system - where apprenticeships must run for at least 12 months.

If you do not need to pay the levy

From the 2026 to 2027 academic year, the government will be fully funding apprenticeships for non-levy payers (mainly small and medium sized businesses) for under 25-year-olds.

Additionally, from October 2026, non-levy paying employers (typically SMEs) will be able to get a payment of up to £2,000 when recruiting new apprentices aged 16 to 24.

This will apply to those starting an apprenticeship from 1 October 2026, providing they've joined their employer within the past 3 months. The first payment will be made once the learner has completed the first 90 days of their apprenticeship.

For more information on Apprenticeships please see Hire an apprentice.

Foundation apprenticeships  

Foundation apprenticeships are paid jobs with structured training in an entry level occupation (at level 2) designed for eligible 16 to 24 year olds who are at the start of their career.

Foundation apprenticeships are available in:

• construction and the built environment
• engineering and manufacturing
• health and social care
• digital
• catering and hospitality
• retail service, supply and administration

You can see the available standards on Skills England's website.

If you're providing a foundation apprenticeship

You may be able to get up to £2,000 to support your apprentice if they're doing a foundation apprenticeship and they're one of the following:

• 16 to 21 years old
• 22 to 24 years old with an education, health and care (EHC) plan
• 22 to 24 years old and have been in care 
• 22 to 24 years old and are in prison or leaving prison

The training provider will pay you once they've confirmed that an apprentice is eligible. This will be paid in 3 instalments.

Apprenticeship units are for those aged 19 and over who are already employed

Apprenticeship units offer employers short, flexible training courses that up-skill existing staff in critical skill areas.

These courses are designed to help employers respond quickly to evolving skills needs and invest in workforce development.

The first units available in critical skills areas are:

• Artificial Leadership - Artificial Intelligence (AI) Strategy and Opportunity
• AI Leadership - AI Adoption, Procurement and Governance
• AI Leadership - AI Delivery and Organisational Transformation
• Battery Manufacturing
• Electric Vehicle Charging Point Installation and Maintenance
• Electrical Fitting and Assembly
• Mechanical Fitting and Assembly
• Permanent Modular Building Assembly
• Solar Photovoltaic Installation and Maintenance
• Welding (mechanised)

Apprenticeship units are for those aged 19 and over who are already employed. They last between 30 and 140 delivery hours and can be delivered over a period of 1 to 16 weeks.