The Department for Work and Pensions (DWP) is now responsible for guidance on employing apprentices, a change that took effect on 1 April 2026. Employers should continue to follow the existing guidance.
All employers are required to use the apprenticeship service to access training that meets their business needs. This service helps to fill skills gaps and boost productivity.
For employers who do not pay the apprenticeship levy, the government covers 100% of training and assessment costs for apprentices aged 16 to 24, or 15 if their 16th birthday falls between the last Friday of June and 31 August. For other apprentices, these employers pay 5% of the cost, with the government covering the remaining 95% up to the funding band maximum.
Levy-paying employers, those with an annual pay bill over £3 million, must register for the apprenticeship service to manage their funds. If their levy funds are exhausted, the government will pay 100% of training and assessment costs for apprentices aged 16 to 24, or 15 if their 16th birthday is between the last Friday of June and 31 August. For all other apprentices, these employers contribute 25% if levy funds are depleted, with the government paying 75% up to the funding band maximum.
Since 3 April 2023, small employers who do not pay the apprenticeship levy are no longer restricted to a maximum of 10 new apprenticeship starts. They can now recruit as many apprentices as their business requires.