The way apprenticeships are funded has changed, and for businesses looking to develop their existing workforce, training could now be significantly more affordable.

New Apprenticeship Funding Rules: What Could Your Business Save?

The way apprenticeships are funded has changed, and for businesses looking to develop their existing workforce, training could now be significantly more affordable.

From 1 August 2026, non-levy paying employers can access 100% government-funded apprenticeship training and assessment for eligible apprentices aged 16 to 24, up to the apprenticeship funding band maximum.

The changes are already in place, meaning businesses can benefit through our upcoming September apprenticeship cohorts.

What has changed?

Previously, non-levy employers would typically contribute 5% towards apprenticeship training costs. Now, if an apprentice is aged between 16 and 24 when their training begins, the government will fund the eligible costs in full.

Apprenticeships are not only for recruiting school or college leavers. They can also be used to develop an existing employee, provided they meet the eligibility requirements and the programme develops substantial new knowledge and skills.

This creates an opportunity to develop employees in areas such as quality, compliance, internal auditing, governance, data protection, health and safety and management, potentially without paying towards the eligible training costs.

What could your business save?

The Quality Practitioner Level 4 apprenticeship, for example, has a funding band maximum of £6,000.

Previously, a non-levy employer would typically have contributed 5% of the apprenticeship cost, up to £300.

Under the new rules, this could give your employee access to a fully funded Quality Practitioner apprenticeship, with eligible training and assessment costs funded up to the £6,000 funding band maximum and a £0 employer contribution.

Employees aged 25 and over can still receive significant support. For non-levy employers, the government will usually fund 95% of eligible training and assessment costs, with the employer contributing the remaining 5%.

Levy-paying employers can continue to use the funds within their apprenticeship service account towards eligible apprenticeship training.

Where a levy-paying employer has insufficient funds in their apprenticeship service account, the funding position will depend on the apprentice's age. For new starts aged 16–24, eligible training and assessment costs can be fully government funded up to the funding band maximum. For apprentices aged 25 and over, the government will fund 75%, with the employer contributing the remaining 25%.

Develop the skills your business needs

Funding is most valuable when it helps to address a genuine skills need.

An apprenticeship could support an employee to take greater ownership of your quality management system, strengthen internal audit capability, improve compliance or data protection knowledge, or progress into a management role.

At Clear Quality, we help employers identify the programme that best reflects the employee’s role, responsibilities and development needs. This ensures the learning can be applied directly within the workplace and deliver real value to the organisation.

Recruiting? Further support is coming

From 1 October 2026, non-levy employers may be eligible for a new hiring payment of up to £2,000 when recruiting an apprentice aged 16 to 24.

Eligibility conditions apply, including when the apprentice starts their apprenticeship and how long they have already been employed by the business.

Other support may also be available depending on the apprentice’s circumstances, but each scheme has different eligibility requirements.

Looking at September starts?

The funding changes are available now, making our September apprenticeship cohorts an ideal opportunity to develop employees who are ready to progress or take on new responsibilities.

Our team can help you understand your funding position, confirm employee eligibility and find the right apprenticeship for the skills your business needs.

Speak to the Clear Quality team to find out more:

📞 01709 918 501 📧 info@clearquality.co.uk

Funding is subject to eligibility criteria and apprenticeship funding rules. Information applies to apprenticeships in England and is correct at the time of publication.