Apprenticeship Funding, Grants
& Employer Incentives
Apprenticeship Funding, Grants
Discover the Funding Available To Make Growing Your Team More Affordable
One of the biggest questions employers ask before recruiting an apprentice is, “How much will it cost?”
The good news is that employing an apprentice is often far more affordable than many employers realise.
Whether you’re taking on your first apprentice or looking to expand your team, there are a range of government funding options and financial incentives that could significantly reduce the cost of recruitment, training and employment.
The funding available depends on several factors, including whether your organisation pays the Apprenticeship Levy and the age or circumstances of your apprentice.
At Swift Childcare and Hatch Training, we’ll help you understand exactly what funding is available to your organisation, explain the options in plain English and support you through the entire process.
Funding at a Glance
Understanding apprenticeship funding doesn’t have to be complicated. Depending on your organisation and the apprentice you recruit, there are a number of funding options and financial incentives that could help reduce the cost of recruitment, training and employment.
The table below provides a simple overview of the support that may be available. If you’re unsure which funding applies to your nursery, our team will be happy to guide you through your options.
Fully Funded Apprenticeships
From August 2026, apprenticeship training for eligible apprentices aged under 25 employed by non levy organisations is fully funded by the Government.
This means there is no employer contribution towards training costs.
Where apprentices are aged 25 or over, non levy employers contribute only 5% of the apprenticeship funding band.
Levy paying employers continue to fund apprenticeship training through their levy account.
How Apprenticeship Funding Works
The amount your organisation contributes towards apprenticeship training depends on whether you pay the Apprenticeship Levy.
Non Levy Paying Employers
If your organisation does not pay the Apprenticeship Levy, the Government may fund all or most of your apprentice’s training costs.
For apprentices aged 24 and under, the Government will pay 100% of the cost of training and assessment, meaning there is no employer contribution towards the apprenticeship.
For apprentices aged 25 and over, employers contribute just 5% of the apprenticeship training costs, while the Government funds the remaining 95%, paying this directly to Swift Childcare or Hatch Training.
Levy Paying Employers
If your organisation pays the Apprenticeship Levy, apprenticeship training is funded using the money held within your Digital Apprenticeship Service account.
Your levy funds can be used to pay for approved apprenticeship training and assessment.
Do you pay the Apprenticeship Levy?
Apprentice 16-24
100%
Training Contribution*
*Subject to eligibility
Apprentice 25+
95%
Training Contribution*
*Subject to eligibility
Funded using the money held within your Digital Apprenticeship Service account
Additional Grants and Financial Support
Alongside apprenticeship funding, employers may also be eligible for a number of additional financial incentives depending on the apprentice they recruit.
These schemes are designed to encourage employers to invest in future talent while helping reduce the overall cost of employment.
£2000 Hiring Payment
From 1 October 2026, eligible non levy employers recruiting a new employee aged under 25 onto an apprenticeship may receive a £2,000 hiring payment.
The payment is made in two instalments:
- £1,000 after the apprentice has completed 90 days on programme
- £1,000 after approximately 12 months
To qualify:
- the apprentice must have joined your organisation within 90 days before the apprenticeship starts
- they must be employed through your PAYE payroll
- they must appear within your Apprenticeship Service account
This incentive is available to non levy employers only.
£1,000 Young Person Employer Incentive
You may also receive £1,000 if your apprentice is:
- aged 16 to 18
- aged 19 to 24 with an Education, Health and Care (EHC) Plan
- aged 19 to 24 and a care leaver
This funding can be used towards costs associated with employing your apprentice, including equipment, uniforms, travel or other workplace support.
The Government pays the funding to Swift Childcare, who will pass it on to your organisation within 30 working days.
Payments are made in two instalments of £500, provided the apprentice remains employed when each payment becomes due.
Where an apprentice has an EHC Plan or has been in care, we’ll obtain their permission before sharing eligibility information.
£3,000 Youth Jobs Grant
Employers recruiting eligible young people aged 18 to 24 who have been claiming Universal Credit for at least six months may be able to claim a £3,000 Youth Jobs Grant.
The scheme is available across Great Britain and supports employers recruiting young people who are:
- aged between 18 and 24
- currently unemployed
- receiving Universal Credit
- not eligible for the Government’s Jobs Guarantee programme
Payments are made in two stages:
- £1,800 after six weeks
- £1,200 after eighteen weeks
Applications are made directly through the Government’s Youth Jobs Grant service.
For more information, visit:
Youth Jobs Grant Application
https://www.gov.uk/find-government-grant
Youth Jobs Grant Guidance
https://www.gov.uk/government/publications/youth-jobs-grant/youth-jobs-grant-grant-guidance
If you have questions about your application, you can contact the Employer Services Line on 0800 169 0178.
Employer National Insurance Savings
Many employers are also able to reduce employment costs through National Insurance savings.
No employer National Insurance contributions are payable for:
- employees under 21
- apprentices under 25 earning below £50,270 per year
This provides an additional saving alongside apprenticeship funding.
Care Leaver Bursary
Eligible care leavers starting an apprenticeship may receive a £3,000 bursary.
The bursary supports young people who are, or have previously been, in the care of a UK Local Authority.
Payments are made to Swift Childcare before being passed on to the learner or employer in line with Government guidance.
If your apprentice is eligible, we’ll explain the process and support the application.
Why Choose Swift Childcare?
Understanding apprenticeship funding can feel complicated, but that’s where we can help.
At Swift Childcare, we work with employers every day to make apprenticeships simple.
We’ll explain the funding available, identify any grants or incentives your organisation may qualify for and support you through the application process from start to finish.
Whether you’re recruiting your first apprentice or growing an established team, we’re here to make the process as straightforward as possible.
Useful Government Resources
If you’d like to explore the funding in more detail, the following Government resources provide additional guidance.
Manage Your Apprenticeship Service Account
https://accounts.manage-apprenticeships.service.gov.uk/service/index
Youth Jobs Grant
https://www.gov.uk/find-government-grant
Youth Jobs Grant Guidance
https://www.gov.uk/government/publications/youth-jobs-grant/youth-jobs-grant-grant-guidance
Employer Services Line
0800 169 0178
Let’s Talk!
Every nursery is different, which means the funding available can vary depending on your organisation and the apprentice you recruit.
If you’d like to understand what grants, funding and incentives your nursery could benefit from, we’d be happy to help.
Get in touch today for an informal conversation with the Swift Childcare team. We’ll explain your options, answer your questions and help you maximise the funding available for your next apprentice.
Any Feedback?
feedback@swiftcc.co.uk
Call us on: 0333 3443140
