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Apprenticeship Funding Rule Changes Coming April 2026

Published: 26th February 2026

Apprenticeships remain a fantastic way for businesses to recruit new talent and upskill existing staff. However, from April 2026, national funding rules are changing, and all employers need to be aware of what this means.

Below is a simple breakdown to help you prepare and think about future training.

Understanding the Two Employer Types

Apprenticeship funding rules vary depending on your annual wage bill:

  • Over £3 million per year?
    You are a Levy-paying employer.
  • Under £3 million per year?
    You are a Non‑Levy employer.

For Levy Employers

Introducing the Growth and Skills Levy

From April 2026, the Apprenticeship Levy becomes the Growth and Skills Levy. Key changes include:

  • 12‑month expiry on Levy funds (previously 24 months).
    Unspent funds will automatically return to the Government.
  • Training costs will still be paid from your Levy account.
    If your balance runs out, you can continue to take on apprentices but must contribute 25% towards training.

Additional Benefits

  • No age limit for apprentices—ideal for upskilling current staff.
  • No employer National Insurance for apprentices under 25 earning under £50,000 per year.
  • £1,000 employer grant for apprentices under 19, paid in two instalments of £500.
  • Apprentices under 19 without GCSE grade 4+ in English/Maths must study these alongside their apprenticeship (delivery varies by provider).
  • National Apprenticeship Wage increasing to £8 per hour.
    More information: National Minimum Wage and National Living Wage rates – GOV.UK

For Non-Levy Employers

Training Cost Contributions

  • Apprentices under 25:
    No employer contribution required—training is fully funded.
  • Apprentices over 25:
    You must contribute 5% towards training costs.
    Depending on the apprenticeship level and standard, this is typically £300–£900.

Additional Benefits

  • No employer National Insurance for apprentices under 25 earning under £50,000.
  • £1,000 employer grant for apprentices under 19 (2 × £500 instalments).
  • No age limit—great for developing existing employees.
  • Apprentices under 19 without GCSE grade 4+ in English/Maths will need to complete these alongside their programme.
  • National Apprenticeship Wage rising to £8 per hour.

For more go to : https://www.gov.uk/employing-an-apprentice  

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