Over the next few months, the Government will roll out an expanded grants and incentive package for employers taking on apprentices, particularly in SMEs. These incentives are a cornerstone of the Government’s youth employment package, announced earlier this year, as it aims to create 200,000 jobs and apprenticeships for the next generation. Notable changes include a £2,000 grant for non-levy payers taking on an apprentice aged under-25 (up from £1,000 currently and available from October) and a new £3,000 Youth Jobs Grant for employers hiring a young person who has been on Universal Credit for six months or more (available from June). What’s more, in some cases employers may be able to ‘stack’ multiple incentives for the same individual. There are, of course, all sorts of eligibility criteria. To help employers understand these criteria, we have a brand new infographic, designed by Amazing Apprenticeships, which lays out the various options.
It’s clear that these kinds of grants and incentives can be a decisive factor in whether employers will choose to take on an apprentice, particularly against a backdrop of rising employment costs. Polling by the Recruitment and Employment Confederation in July 2025 for our Agents of Change report found that one in four employers said incentive payments would be decisive for them in taking on a young apprentice. That’s why we wrote an open letter on behalf of the Apprenticeships Work campaign to the Secretary of State for Work and Pensions last December calling on the Government to protect and enhance financial incentives for SMEs, including the previous £1,000 SME hiring grant.
The Government is likely to face a major challenge in spreading the news about these incentives among busy employers, particularly SMEs, given the many demands on their limited time and resources. Our 2025 polling also found that many SMEs were unaware of the existing apprenticeship incentives. At that time less than half were aware of the £1,000 payment for those who are care-experienced with an education health and care plan or the £1,000 payment for 16-18-year-olds, while even fewer (only 38.4%) were aware they could access fully funded training for under-22s.
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SMEs who were aware they could access fully funded training for under-22s.
Low employer awareness persists today despite many incentives having been available for several years. So the government are going to need to deploy a really effective campaign to make sure employers know exactly what’s available to guarantee a successful roll-out of the new incentives. One of the best ways they can do that is by taking advantage of the reach and connections of the National Apprenticeship Hub Network and local brokerage services.
Another source of incredibly useful information for SMEs is Small Business Summer, led by Amazing Apprenticeships and supported by Edge. Underway now, it's the natural next step in our Apprenticeships Work campaign and aims to let SMEs and young people know about the benefits of apprenticeships in small businesses. We want to encourage and support small businesses towards actually offering an apprenticeship. As an integral part of this support, we want to help small businesses be aware of the benefits taking on an apprentice can bring. We want to help them navigate what can look like a complex and expensive apprenticeship landscape, and especially to signpost how to access financial support.
Small Business Summer offers a range of employer resources, including a practical toolkit with advice and ideas on how to get started with apprenticeships and a series of webinars throughout June and July. Take a look at the graphic and see how your business could benefit financially from taking on an apprentice, as well as from welcoming a bright and enthusiastic young person into your working environment.
Written by
James Gordon, Senior Policy Advisor, Edge Foundation.