Apprenticeships Just Became More Accessible: What the Funding Changes Mean for Employers

Hello Future Force Commnunity!!!

If you’re an employer who has ever said, “We’d love to take on an apprentice… but the costs feel confusing,” this one’s for you.

Last week’s government update brought a major shift for SMEs: No more 5% employer co-investment for apprentices under 25. That means many businesses will now pay £0 in training fees for eligible apprenticeships, a huge step in making apprenticeships more accessible, more attractive, and more achievable for the businesses who need future talent most. At Future Force, we think this is incredibly positive.

So, what’s actually changed?

Previously, non-levy employers paid 5% of the training and assessment cost. For a £10,000 course, that meant £500 before you even thought about paperwork or provider liaison. Now, for most apprentices aged 16–24, that 5% cost is gone.

The government covers the full training fee (up to the funding band), and employers only cover salary and the usual employment overheads.

Simple. Clear. Accessible.

Why this change matters.

For many SMEs, the 5% wasn’t the only barrier, it was the perception that apprenticeships were expensive or complicated. This shift removes a major hurdle and opens the door to confident workforce planning. Apprenticeships become budget-friendly and training fees for under-25s become £0. Savings can be reinvested into equipment, onboarding, mentoring, or development frameworks. Upskilling existing staff becomes easier as existing employees can also start apprenticeships with government-funded training.

Workforce planning for 2025–2026 feels achievable an affordable, sustainable pathway to future talent. Costs don’t disappear entirely, but they’re now more predictable

Employers still budget for:

• Salary

• National Insurance / pension

• Time for supervision

• Optional additional training

• Internal resource for recruiting, onboarding and supporting

But the entry cost is now dramatically reduced, especially compared to hiring fully qualified staff into hard-to-fill roles and we believe the return on investment from apprenticeships often far outweighs the upfront cost.

Making it simple is what we do best

We know budgets, funding bands and DAS accounts can feel overwhelming (we read the full budget papers so you don’t have to). So we’ve built something to help…

Want to understand the difference in costs for your business

We can talk you through:

• The real cost of hiring an apprentice

• Your costs before and after the 2025 funding changes

• Savings based on the removal of employer co-investment

• Salary scenarios so you can plan confidently for January or September 2026 starts

• Options for existing staff apprenticeships

No jargon. No guesswork. Just clarity.

Planning for 2026? Let’s talk early.

If you’re thinking about:

• Hiring apprentices

• Upskilling existing employees

• Building a pipeline of future talent

• Or simply wanting to understand what’s possible

…we’re here for no-obligation conversations.

Drop us a message or email hello@futureforce.org.uk Let’s build tomorrow’s workforce - today.