From April, several changes come into force that will affect how much apprentices cost, how funding works, and how employers are expected to plan and use their training budgets. Some of these shifts are positive, others add pressure — but all of them matter if you want apprenticeships to actually work for your business, not become an admin headache. This short overview cuts through the noise and highlights the practical changes employers need to be aware of before recruiting or budgeting for the year ahead.
Apprentice minimum wage rises from April 2026
Apprenticeship pay increases on 1 April 2026. Employers must pay at least:
- £8.00/hr for apprentices under 19 or in their first year — up from £7.55. That’s a 5.96% increase.
- Older apprentices who’ve finished their first year must be paid the appropriate National Minimum or Living Wage. For example, 18–20s move to £10.85/hr and 21+ to £12.71/hr.
Don’t assume your payroll system auto-adjusts — check your pay reference periods to make sure no one is underpaid in April.
Funding system overhaul
The old Apprenticeship Levy is being replaced with the Growth and Skills Levy. Big changes you need on your radar:
- Shorter expiry on levy funds — you’ll have 12 months to use your pot instead of 24. This forces quicker planning, or funds are lost.
- Removal of the 10% government top-up — you only get what you pay in.
- Higher co-investment once levy funds run out — you may contribute 25% of training costs, with the government covering the rest.
- Levy funds can now be used for a wider set of training options, not just traditional apprenticeships.
This shifts the focus: spend smarter, faster, and with more flexibility — or see the money vanish.
Funding and eligibility changes
- From January 2026, Level 7 apprenticeships (Master ‘s-equivalent) no longer receive government funding for most learners aged 22+. If you want to use these routes, you’ll likely need to fund them yourself or tie them to business sponsorship arrangements.
- There’s more fully funded training available to SMEs for apprentices under 25, eliminating co-investment for this group and lowering the cost of taking on young talent.
- New flexible and short apprenticeship units and foundation apprenticeships (including Level 4 AI pathways) will start rolling out from April 2026, giving options beyond long-form standards.
Bottom line for employers
- Budget for higher wage costs from April 2026.
- Plan levy spending faster and with more strategic intent before funds expire.
- Review your apprenticeship mix — Level 7 and older learners are shifting out of funded routes, but under-25s are advantaged.
- Explore new modular and flexible training options that may suit fast-moving skills needs like AI and digital.
In practical terms: don’t wait. Audit your 2026 apprenticeship strategy now — payroll, levy planning, recruitment targets, and training pathways — to avoid surprises and maximise return on your training investment.
🚀Want the full picture?
If you’re considering hiring an apprentice in 2026, our Employer Guide breaks down everything you actually need to know — costs, funding, timelines, compliance, and what makes an apprenticeship work in the real world. It’s written for employers who want clarity, not jargon, and practical answers before making a hiring decision.
👇Download the Employer Guide
Get a straight-talking breakdown of apprenticeship costs, funding, and what’s changing in 2026 — before you commit to hiring.
