Hiring an apprentice can be a great way for a small business to grow while providing much needed experience to the next generation. And with the government continuing to fund apprenticeship schemes, it\u2019s becoming a better financial choice for small businesses too. <\/p>\n\n\n\n
Our guide covers all you need to know about hiring an apprentice, the newly announced Growth and Skills Levy, and whether you can afford to pay the apprenticeship wage.<\/p>\n\n\n\n
The government made some key changes to apprenticeships in the Autumn Budget 2025. <\/p>\n\n\n\n
Small and medium-sized businesses hiring apprentices under the age of 25 won\u2019t need to pay a co-investment fee anymore. This means the government will fund 100 per cent of the training fees for SMEs hiring apprentices. <\/p>\n\n\n\n
However, there\u2019s no indication yet if these measures will come in from the next financial year or sooner. <\/p>\n\n\n\n
The chancellor also announced a minimum wage rise for apprentices from April 2026 \u2013 rising from \u00a36.40 to \u00a37.55 an hour (an 18 per cent increase). <\/p>\n\n\n\n
The Apprenticeships Levy will also now be broadened into the Growth and Skills Levy. With a \u00a340 million investment announced to develop shorter “foundation” apprenticeships in key sectors like construction, digital, and health, designed to help young people enter the workforce.From April 2026, the new levy system is expected to allow funding for shorter courses too, rather than requiring a full 12 month programme. More details on this are still being finalised by the new body, Skills England<\/a>.<\/p>\n<\/div>\n\n\n\n An apprenticeship is a work-based training programme. It generally gives people interested in entering a certain trade or industry the chance to learn on the job and develop practical experience. It includes classroom learning alongside on-the-job training.<\/p>\n\n\n\n While apprenticeships are generally associated with younger people, you can hire an apprentice of any age. It\u2019s a valuable way for someone to upskill or change their career.<\/p>\n\n\n\n Apprenticeships often end in a certification or qualification in a certain industry, allowing people to gain jobs in the areas that interest them. Many businesses employ their apprentices directly after they complete their training, as they\u2019re already well-trained specifically for that business.<\/p>\n\n\n\n If you\u2019re a small business owner looking to take on an apprentice, here\u2019s what you need to know. Any apprentice you hire must be over the age of sixteen and not be in full-time education.<\/p>\n\n\n\n Apprentices are considered true employees of the business. If you\u2019re taking on an apprentice for your small business, they\u2019ll:<\/p>\n\n\n\n If you\u2019re interested in taking on an apprentice in your small business, you may be wondering what\u2019s in it for you and your team? Serena Vano started at Simply Business as an apprentice and is a huge champion for apprenticeships everywhere.<\/p>\n\n\n\n \u201cIf you’re questioning getting an apprentice: go for it \u2013 it’s a really incredible journey. You’re able to help someone learn and upskill through on-the-job experience \u2013 but you’re also able to watch them grow in their confidence, see them recognise their own growth, and have those eureka moments when they realise how much they\u2019ve learnt.<\/p>\n\n\n\n \u201cYour employees that are supporting the apprentices are able to grow through the experience too. By mentoring an apprentice and acting as a close support system, your team can grow both professionally and personally.<\/p>\n\n\n\n \u201cApprenticeships also provide important opportunities for those who may be from underrepresented groups. By offering an apprenticeship, you\u2019re opening a door to an industry that may not have been available through other routes.\u201d<\/p>\n\n\n\n Employing an apprentice can be a valuable decision and it mutually benefits both you and your apprentice. As a small business owner, you\u2019ll have a wealth of knowledge to share with your apprentice \u2013 helping to shape the next generation of your chosen industry.<\/p>\n\n\n\n But how do you hire an apprentice?<\/p>\n\n\n\n The government website lists all the current apprenticeship training courses<\/a> you can choose from. It\u2019s at this stage you can see the required qualification levels and how much funding you\u2019re entitled to, so you can choose a course that\u2019s a good fit for both your business and your apprentice.<\/p>\n\n\n\n As 20 per cent of your apprentice\u2019s time needs to be spent learning \u2018off-the-job\u2019, it\u2019s important that you choose the right training provider. This will be the organisation responsible for teaching this part of the course.<\/p>\n\n\n\n Nowadays, many training providers offer online learning, so you\u2019re no longer limited by choosing training providers close to the workplace.<\/p>\n\n\n\n Serena Vano, TechOps Lead at Simply Business, understands the importance of finding the right training provider. When recruiting apprentices, she believes it’s important to not only focus on the course content.<\/p>\n\n\n\n \u201cPartnering with a good provider is key to making sure everyone gets the most out of the apprenticeship experience. It\u2019s important that they\u2019re the right fit for you and your business. Do they care for the same values that you do as a company? If things like diversity and social impact matter to your business, find a training provider that feels the same.\u201d<\/p>\n\n\n\n If you\u2019re based in England, you can find an apprentice by creating an apprenticeship services account<\/a>. This is where you\u2019ll advertise your available roles, manage payments to training providers, and manage your funding.<\/p>\n\n\n\n For those based outside of England, you can use these links to find out more information on hiring an apprentice in Scotland<\/a>, Wales<\/a>, and Northern Ireland<\/a>.<\/p>\n\n\n\n Once you find an apprentice, you\u2019ll need to create a training plan for them. This will then have to be signed by yourself, your apprentice, and your chosen training provider.<\/p>\n\n\n\n This makes sure that you get the most out of working with your apprentice, and your apprentice gets the most out of learning under you. It\u2019s important that your apprentice:<\/p>\n\n\n\n So, if you\u2019re paying them the minimum wage (at least), how much will hiring an apprentice cost you? While the specific costs of hiring an apprentice will depend on your industry and location, the good news is that you may be entitled to additional funding when taking on an apprentice.<\/p>\n\n\n\n You can get funding from the government when you hire an apprentice, which will go towards helping with training and assessment. How much funding you get will depend on if you pay the Apprenticeship Levy.<\/p>\n\n\n\n The apprenticeship levy is how businesses can continue to offer apprenticeships with the help of government funding. The levy is a tax paid by businesses that have a payroll of more than \u00a33 million and is charged at 0.5 per cent of your business\u2019s total payroll.<\/p>\n\n\n\n After it\u2019s paid as tax, this money is then stored in a fund which is put back into apprenticeship programmes through government funding.<\/p>\n\n\n\n However, if you\u2019re a small business, then you may not meet this \u00a33 million threshold. This means that you\u2019ll only have to pay five per cent of the cost of training and assessing your apprentice.<\/p>\n\n\n\n The other 95 per cent will be paid through government funding and will go directly to the training provider.<\/p>\n\n\n\n On top of this, you may also find your business making a profit because of your apprentice. A recent study<\/a> showed that an employer\u2019s estimated yearly gain for hiring an apprentice is between \u00a32,500 and \u00a318,000 on average.<\/p>\n<\/div>\n\n\n\n The government is introducing the Growth and Skills Levy to give businesses more flexibility when training young people. It will replace the current Apprenticeship Levy. <\/p>\n\n\n\n The aim is to \u201crebalance\u201d spending on apprenticeships by shortening the length of programmes (currently at a minimum of 12 months) and stopping levy funding for level 7 schemes (equivalent to a master\u2019s degree and often accessed by older or already well qualified employees).<\/p>\n\n\n\n Instead, the government has introduced new paid \u2018foundation\u2019 apprenticeships. These will offer training to young people who aren\u2019t ready to start apprenticeships at level two or three. <\/p>\n\n\n\n This was all confirmed in the Autumn Budget 2025.<\/p>\n\n\n\n When it comes to choosing an apprentice, there are certain skills you should look out for. Ata Ata, our Senior eCRM Manager, has worked with multiple apprentices in his team \u2013 even hiring two of them after their training ended.<\/p>\n\n\n\n On how to choose the right apprentice, Ata says: \u201cLook to hire someone that\u2019s curious, keen to learn, and wants to progress their career. You want to see someone who\u2019s highly engaged in the work and really wants the opportunity to put what they\u2019re learning into practice.<\/p>\n\n\n\n \u201cIt\u2019s a really rewarding process to see them grow and develop and I’m still in touch with my previous apprentices today.\u201d<\/p>\n\n\n\n While the government website lists all available apprenticeship courses you can choose from, here are a couple of ways apprenticeships could work in your small business.<\/p>\n\n\n\n If you run a small plumbing business<\/a>, an apprentice could be a valuable addition to your team. A typical plumbing apprenticeship can take up to four years, so you\u2019ll have a dedicated team member to share your skills with for a significant amount of time.<\/p>\n\n\n\n Self-employed mechanics<\/a> can bring an apprentice into their business no matter their specialism. There are training programmes available for everything from electro-mechanical engineering to lift and escalator maintenance. The length of the training course will depend on the level of qualification offered.<\/p>\n\n\n\n If you run your own private dental practice, you can have an apprentice join your team to train as a dental nurse<\/a>. Training programmes for dental nurse apprentices are typically around 18 months in length and can lead to further training.<\/p>\n\n\n\n Unlike other trades mentioned, tattoo apprentices often apply directly to tattoo studios to work with artists who inspire them. If you own your own tattoo studio and someone approaches you for an apprenticeship, you can have them help out in the studio whilst you offer advice on tattooing \u2013 and even the potential to practise.<\/p>\n\n\n\n You don\u2019t need a university degree to be a software engineer \u2013 and perhaps as a self-employed software engineer<\/a> you\u2019re ready to share what you\u2019ve learned. There are many different levels of qualifications available from software engineering training programmes, with most lasting from approximately 18 to 24 months.<\/p>\n\n\n\n As one of the UK’s biggest business insurance<\/a> providers, we specialise in public liability insurance<\/a> and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?<\/p>\n\n\n\nWhat is an apprenticeship?<\/h2>\n\n\n\n
How does an apprenticeship work?<\/h2>\n\n\n\n
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Why hire an apprentice?<\/h2>\n\n\n\n
How to take on an apprentice<\/h2>\n\n\n\n
1. Choose a relevant apprenticeship training course<\/h3>\n\n\n\n
2. Choose the right training provider<\/h3>\n\n\n\n
3. Find your apprentice<\/h3>\n\n\n\n
4. Complete your training plan<\/h3>\n\n\n\n
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How much does an apprentice cost?<\/h2>\n\n\n\n
Apprenticeship Levy<\/strong><\/h2>\n\n\n\n
Apprenticeship reforms: what is the Growth and Skills Levy? <\/strong><\/h3>\n\n\n\n
How to choose an apprentice<\/h2>\n\n\n\n
Types of apprenticeships you could offer<\/h2>\n\n\n\n
Plumbing apprenticeship<\/h3>\n\n\n\n
Mechanic apprenticeship<\/h3>\n\n\n\n
Dental nurse apprenticeship<\/h3>\n\n\n\n
Tattoo apprenticeship<\/h3>\n\n\n\n
Software engineer apprenticeship<\/h3>\n\n\n\n
More guides on employing staff in your small business<\/h3>\n\n\n\n
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