Employer

Why take on an
apprentice?

Apprenticeships are now a key driver of workforce development, giving businesses the opportunity to train employees from the ground up. Employers who invest in apprentices build skilled, dedicated teams while gaining clear financial and operational benefits.

They provide a sustainable recruitment strategy, helping to close skills gaps and improve employee retention. In fact, 86% of employers say apprenticeships help develop skills relevant to their organisation, according to the UK Government’s Apprenticeships Evaluation Report.

Whether you’re upskilling existing staff or bringing in new talent, apprenticeships offer measurable, long term value for employers.

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How do apprenticeships work?

What are the benefits of apprenticeships for employers?

Your people are your best asset, by equipping them with the right skills, you can future proof your workforce and achieve your
business goals by developing employees through apprenticeships.

  • Develop a skilled workforce – Apprentices are trained specifically for your business needs.
  • Increased productivity – Apprentices contribute to real work while learning.
  • Address skills shortages – Helps fill gaps in areas where experienced workers are hard to find.
  • Build future leaders – Apprentices can grow into supervisors, specialists, or managers.

  • Lower recruitment costs – Training someone internally reduces the need for expensive hiring later.
  • Government incentives or funding – Incentives for taking on an apprentice.
  • Reduced turnover costs – Apprentices often stay longer because they grow with the company.

  • New perspectives – Apprentices bring fresh thinking and up-to-date learning.
  • Digital skills – Younger apprentices often bring strong technology and digital knowledge.
  • Adaptability – Apprentices are usually eager to learn new methods and technologies.

  • Boosts staff morale – Employees often enjoy mentoring and passing on their skills.
  • Strengthens company culture – Training apprentices promotes collaboration and learning.
  • Develops leadership skills in existing staff – Supervising apprentices helps experienced workers grow as mentors.

  • Supports young people entering the workforce – Provides real career opportunities.
  • Strengthens local communities – Businesses invest in local talent.
  • Improves company reputation – Organisations that train apprentices are often viewed as responsible and supportive employers.

  • Creates a reliable talent pipeline – Apprentices become trained employees who already understand the business.
  • Improves staff retention – People trained internally often feel more loyal to the organisation.
  • Helps maintain industry standards – Passing on expertise ensures skills are preserved.

Apprenticeships are cost effective because they allow businesses to train employees while they work, meaning companies gain productive workers without the high costs of recruiting fully qualified staff. Apprentices typically start on lower wages while they are learning, which reduces labour costs, and there are offer funding or financial incentives to support apprenticeship programmes. You can also train apprentices to develop the exact skills they need, reducing the need for expensive external training later. In the long term, apprenticeships can lower staff turnover because apprentices often remain loyal to the company that trained them, saving additional recruitment and training costs. As a result, apprenticeships provide a practical and affordable way for organisations to build a skilled workforce.

Apprenticeships can increase employee retention because apprentices often feel a strong sense of loyalty to the company that trained and supported them at the start of their career. By investing time and resources into their development, employers help apprentices build valuable skills and confidence, which can create a positive relationship between the employee and the organisation. Apprentices also gain a clear career pathway within the business, making them more likely to stay and progress rather than look for opportunities elsewhere. As a result, companies that offer apprenticeships often benefit from a more committed workforce and lower staff turnover.

An apprentice can improve productivity within a business by supporting experienced employees and helping complete day to day tasks more efficiently. As apprentices learn new skills, they can take on responsibilities that free up more experienced staff to focus on complex or higher level work. This helps work flow more smoothly and allows the team to complete tasks more efficiently. Apprentices are also often eager to learn and contribute, bringing energy and motivation to the workplace. Over time, as their skills develop through training and experience, they become more confident and capable, which further increases the overall productivity of the business.

An apprentice can improve innovation within a business by bringing fresh ideas, new perspectives, and up to date knowledge from their training or education. Because apprentices are still learning, they are often open to new ways of thinking and may question existing processes, which can lead to improvements in how tasks are completed. They may also introduce new technologies, digital skills, or modern methods that help the business work more efficiently. By combining their new ideas with the experience of existing employees, apprentices can contribute to creative problem-solving and help the business develop new and improved ways of working.

What will it cost?

Government Funding

As of April 2026, apprenticeship training for under-25s in SMEs is fully funded by the government. This means that employers do not need to contribute towards training costs, making it easier and cheaper for small businesses to hire apprentices.

  • Levy employers: 100% funded.
  • Non‑levy employers if person +25: 5% employer contribution (95% government funded).
  • Apprentices aged 16–24: fully funded (100% training costs covered for SME businesses not paying into the apprenticeship levy).
Discuss my Options

How much an apprentice gets paid depends on:

  • Their age.
  • Which year of their apprenticeship they are in.
  • The rates in this advice are the legal minimum an employer must pay. An employer can choose to pay more.

Apprentices aged under 19
The National Minimum Wage rate for apprentices is £8 per hour from 1 April 2026. Employers must pay at least this rate to all apprentices who are under 19.

Apprentices aged 19 or over
For an apprentice who’s aged 19 or over, how much they get paid depends on the year of the apprenticeship they’re in.

First year
When someone aged 19 or over is in the first year of their apprenticeship, their employer can choose to pay them either:

  • The apprentice rate of £8 (from 1 April 2026).
  • More than the apprenticeship rate.

This includes:

  • During the first year after an apprentice has changed employer, even if it’s part of the same apprenticeship.
  • During the first year of a new apprenticeship agreement, even if it’s with the same employer.

Second year or later
In the second year of an apprenticeship, their employer must pay at least the minimum wage for the apprentice’s age.

This is:

  • Age 19 or 20 – £10.85 (from 1 April 2026).
  • Age 21 or over – £12.71 (from 1 April 2026).
  • If an apprenticeship lasts longer than 2 years, these rates also apply to later years.
  • Employers can choose to pay more. 

Example of starting a new agreement
Jo is 19 and is doing a 2-year apprenticeship. The employer must pay Jo at least the apprentice rate of £8 per hour during the first year.

In the second year, Jo is 20. The employer must pay Jo at least the minimum wage rate for their age. This is £10.85

Source (ACAS https://www.acas.org.uk/)

As part of an array of announcements on getting young people into work (including the additional £1 billion of Youth Guarantee funding), the government today announced changes to its approach to apprenticeships:

  • New funding for SMEs – guaranteeing them £2,000 for each apprentice under the age of 25 that they take on.
  • Introduction of apprenticeship units – with seven new flexible training courses announced today, all designed to meet emerging skills needs.
  • Two new foundation apprenticeships – in hospitality and retail, to meet areas of high demand.
  • A new Level 2 admin apprenticeship – exclusively for young people aged 16-24.
  • Defunding of 16 apprenticeships, with the aim of diverting funding towards routes aimed at young people.

New funding for SMEs
In December 2025, the government announced that the training costs for apprentices under the age of 25 at SMEs would be fully funded. The new announcement of a further cash incentive of £2,000 for SMEs should provide further financial assistance and motivation for organisations of this size to take on young apprentices.

Government funding for training
The government contributes towards the cost of apprenticeship training and assessment. For many employers, the government pays up to 95% of the training costs, and in some cases (such as apprentices aged 16–24 in small businesses) the training can be fully funded.

Employer incentive payments
Employers can receive £1,000 when they take on an apprentice aged 16–18, or someone aged 19–24 who has an Education, Health and Care Plan or has been in care. This payment helps cover the additional costs of supporting a young apprentice in the workplace.

National Insurance savings
Businesses may not have to pay employer National Insurance contributions for apprentices under 25 who earn below a certain threshold. This can save employers thousands of pounds per year in payroll costs.

Off the job training

Every apprentice must complete a minimum of 6 hours per week off the job training (which amounts to 20% of your working hours if part time). This can be built up through a wide range of learning and development activities (for example in pharmacies it maybe reading through SOP’s or completing the medicine counter assistant course).

Many of the activities will happen naturally within the workplace. CoreEd ask for 4 hours worth of digital learning and 2 hours of work based training to be logged by the learner as a minimum to make up off the job hours.

  • Improves learner skills so they can progress into 
higher roles.
  • Helps the business to fill skills gaps quickly.
  • Incentivises you as being a loyal employer.
  • Brings new ideas and innovation into your business.
  • Ensures you meet government funding rules.

What is off the job
training?

  • Learning that happens during paid hours, but is 
separate from routine work.
  • Focused on gaining new skills, knowledge and behaviours needed for the apprenticeship they are completing
  • Can happen on-site at work, online, or externally.
  • It doesn’t mean leaving the workplace or being absent from work. As this is your business you can make the decision on how it is delivered.

What counts as OTJ training?

Here are some activities that can be logged as OTJ training:

  • Mentoring and shadowing
    Observing experienced staff or leaders
  • Workshops and teaching sessions

    In person or online
  • Research and study
    Reading sector guidance, watching tutorials
  • Simulation and role play
    Practising scenarios before doing them live
  • Projects and presentations
    Developing reports or leading small projects
  • Other courses
    Completion of other courses not directly linked 
to the standard