New Apprenticeship Funding Packages Unlocked

Fully funded training for under-25s from 1 August 2026

From 1 August, apprenticeship training for all eligible under-25s will be fully funded, including for non-levy payers. This closes off a proposed 25% co-investment surcharge for under-25s where levy-paying employers exceed their levy. For those taking on young apprentices, this removes a cost barrier at the point of hire.

Skills policy is devolved, so this article applies to England only, though Scotland, Wales, and Northern Ireland are all taking various approaches to unlocking apprenticeship funding themselves which we encourage you to explore. 

Other funding available:

Any business who hires someone aged 18-24 on Universal Credit who has been out of work for at least six months has been eligible for a £3,000 grant since June. More info here. 

Upcoming funding:

From October 2026, smaller firms will receive a £2,000 hiring bonus for taking on under-25 apprentices.

A new bursary to remove a welfare trap

A new bursary, up to £4,500 per year per household (exact figure still to be confirmed), targets a specific problem: young people on Universal Credit turning down apprenticeships because the household loses more in benefits than the apprentice earns. The Social Security Advisory Committee found a single-parent household with a disabled young person could lose around £80 a week in benefits when that young person takes up an apprenticeship on the apprentice minimum wage. The bursary is designed to close that gap.

Further questions or keen to get involved in NFRC’s skills outreach programme? Contact [email protected]