Last reviewed: 5 October 2026. This guide is general information, not legal or tax advice. England only for apprenticeship funding and incentives: Scotland, Wales and Northern Ireland have their own programmes. Funding rules change often, so check the GOV.UK pages linked below before you commit.
TL;DR
- An apprentice is an employee with a real job, a contract of employment, an apprenticeship agreement and a training plan; training lasts at least 8 months (GOV.UK).
- The apprentice minimum wage is £8 an hour since April 2026, for apprentices under 19 or in their first year (GOV.UK).
- The Apprenticeship Levy is 0.5% of the pay bill for employers above £3 million, less a £15,000 allowance (GOV.UK).
- Non-levy employers pay nothing towards training for apprentices aged 16 to 24, and 5% for older apprentices.
- £2,000 hiring payment for non-levy employers taking on a young apprentice, announced on 1 October 2026.
What an apprenticeship involves
GOV.UK's guidance on employing an apprentice is written for employers in England. Apprentices are aged 16 or over, combine work and study, and can be new or existing employees. An apprenticeship takes from 8 months to 6 years, depending on its type and level.
The employer's obligations (GOV.UK, pay and conditions):
- give the apprentice a contract of employment and a written statement, as for any employee (see our guide to the written statement of employment particulars);
- sign an apprenticeship agreement naming the occupation, the apprenticeship, the start and end dates and the amount of training;
- sign a training plan with the apprentice and the training provider;
- employ them in a real job that lets them gain the skills for their assessment, with training of at least 8 months;
- pay for training time, and give time off during the working week for it;
- offer the same conditions as other employees in similar roles: paid holiday, sick pay, benefits and support.
Apprentices have the same employment rights as other employees, including on redundancy. If you want to end an apprenticeship early for another reason, GOV.UK advises getting legal advice. Most employers also use a probation period; see probation periods in the UK.
The apprentice minimum wage
Minimum wage rates apply across the UK and change on 1 April each year. Since April 2026 (GOV.UK):
| Age or situation | Hourly minimum |
|---|---|
| Apprentice under 19 | £8.00 |
| Apprentice 19 or over, in the first year | £8.00 |
| Apprentice 19 or over, after the first year: 21+ | £12.71 |
| Apprentice 19 or over, after the first year: 18–20 | £10.85 |
GOV.UK's example: an apprentice aged 21 in the first year is entitled to £8 an hour; once they have completed the first year, £12.71. The contract should make clear the wage and the hours it covers, and training time is paid working time.
The Apprenticeship Levy
The levy is collected by HMRC through payroll (GOV.UK, pay Apprenticeship Levy):
- Who pays: employers with an annual pay bill of more than £3 million, including connected companies or charities whose combined pay bill is above that threshold.
- Rate: 0.5% of the annual pay bill: all payments to employees subject to employer Class 1 secondary National Insurance, such as wages, bonuses and commissions.
- Allowance: £15,000 a year, shared between connected companies. Unused allowance cannot be carried over.
- How: reported and paid monthly through your Employer Payment Summary (EPS).
For recruitment agencies, HMRC has specific rules: you must pay the levy if you "supply labour (including subcontractors) to a client" and "pay Class 1 secondary National Insurance contributions on the earnings of those workers". An employment business that runs PAYE for its temps counts their pay in its pay bill, which can take it over £3 million well before its own office payroll would. Contractors paid through their own limited company or an umbrella company are not on your payroll, so their pay is not part of your pay bill. For the umbrella rules, see umbrella company PAYE rules from April 2026.
Funding for training (England)
The government pays towards training and assessment, up to the funding band maximum for each apprenticeship (GOV.UK, get funding):
| Employer | Apprentice aged 16 to 24* | Other apprentices |
|---|---|---|
| Does not pay the levy | Government pays 100% | Employer pays 5%, government 95% |
| Pays the levy | Levy funds first; once used, government pays 100% | Levy funds first; once used, employer pays 25%, government 75% |
*Or aged 15 if their 16th birthday falls between the last Friday of June and 31 August.
Funding is managed through an apprenticeship service account, which you also use to advertise apprenticeships and manage providers. You need a GOV.UK One Login and your PAYE details to set it up (GOV.UK, create an account).
Hiring payments and other incentives
The £2,000 apprenticeship hiring payment. Announced on 1 October 2026, it is for employers that do not pay the levy. You are eligible if the apprentice is aged 16 to 24 (or 15 in the case above) at the start of training, and has not worked for you for more than 90 days before training starts. You do not apply: the training provider passes it on in two £1,000 instalments, 90 days after the start and one year after the start (242 days for a foundation apprenticeship), provided the apprentice is still employed. You can spend it on any cost of their employment, such as equipment, travel or uniform.
£1,000 for younger or supported apprentices. GOV.UK also lists £1,000, paid in two instalments of £500, for apprentices aged 16 to 18, or 19 to 24 with an education, health and care plan or who have been in care.
Foundation apprenticeships. An employer incentive of up to £2,000, paid in three instalments, is available for foundation apprentices aged 16 to 21, or 22 to 24 if they have an education, health and care plan, have been in care, or are in or leaving prison. Foundation apprenticeships cover construction, engineering and manufacturing, health and social care, digital, catering and hospitality, and retail, supply and administration.
Check the current funding rules with your training provider before relying on any payment: eligibility is decided at the start of training.
Flexi-job apprenticeship agencies
If you do not want to employ and train the apprentice yourself, GOV.UK points to flexi-job apprenticeship agencies: the apprentice is employed by the agency but works in your organisation. Funds from your apprenticeship service account cannot be used to pay for a flexi-job apprenticeship agency's services (GOV.UK). For a recruitment agency, this is a distinct model with its own rules, not a standard temp placement; the agency worker rules are in agency workers in the UK.
Checklist for an employer in England
- Choose the apprenticeship standard and a training provider.
- Check your funding position: levy payer or not, apprentice's age, eligible incentives.
- Create an apprenticeship service account.
- Advertise the role, or let the provider do it for you.
- Issue the contract of employment and the written statement, with the right wage.
- Sign the apprenticeship agreement and the training plan.
- Plan paid training time in the working week.
- Diary the end of the first year if the apprentice is 19 or over: their minimum wage rises.
Where Marvin fits
Marvin is a recruitment CRM and ATS. If you recruit apprentices for your clients or your own team, Desk handles the job, the candidates and the shortlist, and your Career site publishes the role. Marvin does not manage apprenticeship funding, the apprenticeship service account, levy calculations or PAYE payroll: those stay with your payroll provider, your accountant and the training provider. For contract and temp desks, see contract and temp recruitment software.
Recruiting for clients across perm and contract roles? Book a demo.
Frequently asked questions
What is the apprentice minimum wage in 2026?
£8 an hour since April 2026. It applies to apprentices aged under 19, and to apprentices aged 19 or over in the first year of their apprenticeship. After the first year, an apprentice aged 19 or over is entitled to the minimum wage for their age, for example £12.71 an hour at 21 or over.
Who pays the Apprenticeship Levy?
Employers with an annual pay bill of more than £3 million, including connected companies or charities. The levy is 0.5% of the pay bill, reduced by an annual allowance of £15,000, and is reported and paid monthly through PAYE.
Does a recruitment agency pay the levy on its temps?
It can. HMRC guidance says an employment or recruitment agency must pay the levy if it supplies labour to a client and pays employer Class 1 National Insurance on those workers' earnings, provided its pay bill is above £3 million.
What is the £2,000 apprenticeship hiring payment?
A payment of up to £2,000 for employers who do not pay the levy and take on an apprentice aged 16 to 24 (or 15 in specific cases), who started the job no more than 90 days before training. It is paid in two £1,000 instalments through the training provider, with no application needed.
Does this guide apply in Scotland, Wales or Northern Ireland?
Only partly. The minimum wage rates and the levy apply across the UK, but the apprenticeship programmes, funding and hiring payments described here are for England. Scotland, Wales and Northern Ireland run their own schemes.
