How to hire an apprentice in the UK
Hiring an apprentice in the UK is affordable with government funding. Here's the process, cost and pay explained.
Written by Naomi Lai— Small business & finance writer. Read Naomi's full bio
Published Friday 25 September 2026
Table of contents
Key takeaways
- The government funds 95% to 100% of apprenticeship training for most small employers in England, so your main cost is usually just the apprentice's wages.
- Hiring an apprentice follows a clear six-step process, from choosing the apprenticeship to signing the agreement.
- The apprentice minimum wage is £8.00 an hour for under-19s and for anyone 19 or over in their first year.
- You'll sign an apprenticeship agreement at the start and give the apprentice at least 20% of their working hours as paid training time.
What is an apprenticeship, and who can be an apprentice?
An apprenticeship is a real, paid job that combines everyday work with structured training, leading to a recognised qualification. Your apprentice can be a brand-new hire or an existing team member you want to upskill.
To be an apprentice, someone must be 16 or over, not in full-time education, and living in England. The funding rules covered in this guide apply only to England. Scotland, Wales and Northern Ireland run their own separate schemes.
Apprenticeships come at different levels to suit different roles and prior experience. The main levels are:
- Foundation and intermediate (Level 2): roughly equivalent to GCSE passes
- Advanced (Level 3): roughly equivalent to A levels
- Higher (Levels 4 to 7): equivalent to a foundation degree and above
- Degree (Levels 6 to 7): equivalent to a bachelor's or master's degree
An apprenticeship takes anywhere between eight months and six years to complete, depending on the type and level. You can see the full picture of what's involved when taking on an apprentice before you commit.
How to hire an apprentice
Becoming an apprenticeship employer is more straightforward than most owners expect. Follow these six steps in order, and you'll have an apprentice in place with funding sorted.
1. Choose the apprenticeship
Start with a business need, then pick the apprenticeship that meets it. Think about the skills gap you want to fill and which level fits the role.
2. Find an approved training provider
Your apprentice's off-the-job training is delivered by an approved provider, such as a college or training company. You can search for a course and provider through the GOV.UK employing an apprentice service.
3. Set up funding and an apprenticeship service account
Create an apprenticeship service account to manage funding, approve payments, and track your apprentice. This is also where you confirm how much of the training cost the government covers and what, if anything, you contribute.
4. Advertise the vacancy
You can advertise the role yourself through the recruit an apprentice tool, or ask your training provider to recruit for you. Many providers handle advertising and shortlisting as part of their service.
5. Interview and select your apprentice
Interview candidates the way you would for any other role, and choose the person who's the best fit for your team. Your provider can sit in on interviews and help you assess suitability if you'd like the support.
6. Sign the agreement and agree a training plan
Once you've chosen your apprentice, sign an apprenticeship agreement and agree to a training plan with your provider. Both need to be in place before the apprenticeship starts.
How much does it cost to employ an apprentice?
The main cost of hiring an apprentice is their wages, because the government funds most or all of the training. For a small business, this makes an apprentice one of the more affordable ways to bring new skills into your team.
Your typical costs break down into three areas:
- Wages: you pay at least the apprentice minimum wage for every hour worked, including their paid training time
- Training: funded 95% to 100% for most small employers, so you pay little or nothing towards it
- Normal employer costs: the usual extras such as employer National Insurance, a workplace pension and any equipment the role needs
There's good news on top of the funded training. If you hire an apprentice aged 16 to 18 (or 19 to 24 with an education, health and care plan or a care-experienced background), you'll get a £1,000 employer payment, paid in two instalments of £500.
Apprenticeship funding and the apprenticeship levy explained
Apprenticeship funding comes in two forms, and which one applies depends on the size of your pay bill. For almost every small business, the government covers the bulk of the cost.
The apprenticeship levy is a charge of 0.5% of an employer's annual pay bill, and only employers with a pay bill over £3 million pay it. There's a £15,000 annual allowance to offset it, so if your pay bill is under £3 million (as it is for nearly all small businesses), you don't pay the levy at all.
If you don't pay the levy, you're a non-levy employer and the government funds your training directly. Here's how the split works:
- 100% funded: for apprentices aged 21 or under, or 24 or under with an education, health and care plan or care experience
- 95% funded: for everyone else, where you pay the remaining 5% up to the funding band maximum
You'll access and manage these funds through your apprenticeship service account. It's also where the £1,000 payment for eligible younger apprentices comes through.
How much to pay an apprentice
You must pay your apprentice at least the apprentice National Minimum Wage, which is £8.00 an hour from April 2026. This rate applies to apprentices under 19 and to those 19 or over in the first year of their apprenticeship.
After the first year, apprentices aged 19 or over move to the National Living Wage for their age. From April 2026 those rates are:
- 18 to 20: £10.85 an hour
- 21 and over: £12.71 an hour
You also give your apprentice at least the statutory paid holiday, the same as any other employee. Many employers choose to pay above the minimum to attract and keep good people, and you're free to do the same. You can handle these different rates automatically with payroll software that updates when the apprentice's rate changes.
The apprenticeship agreement and training plan
Two documents need to be in place before the apprenticeship begins. Together they set out what the apprentice will do, learn, and be paid.
The apprenticeship agreement is a contract of employment. It confirms the apprenticeship the person is doing, how long it lasts, the training involved, and the qualification they're working towards. You can use the GOV.UK apprenticeship agreement template to get started.
The training plan, sometimes called a commitment statement, is agreed with your training provider. It records the off-the-job training, who's responsible for what, and how the apprentice's progress will be reviewed.
Your responsibilities as an apprenticeship employer
Taking on an apprentice comes with a handful of ongoing duties, most of which mirror your responsibilities to any employee. Getting these right keeps your funding on track and your apprentice supported.
Here are your core responsibilities:
- Give paid training time. Your apprentice spends at least 20% of their normal working hours on off-the-job training, and you pay them for that time.
- Treat them as an employee. Apprentices have the same core rights as your other staff, including fair pay, paid holiday, protection from discrimination, and a safe workplace.
- Run them through payroll. You handle their pay, tax, and pension the same way you do for the rest of your team.
- Support their progress. You give them the time, work, and guidance to complete their qualification.
You can read more about the training rules on the Advisory, Conciliation, and Arbitration Service (Acas) guide to training for apprentices.
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An apprentice's pay changes as they move from the apprentice rate to their age rate, and you still need to get tax, pension, and holiday right every payday. Xero helps you handle apprentice pay, deductions, and records in one place, so you can pay your team accurately with less manual work.
FAQs on hiring an apprentice in the UK
Here are quick answers to the questions small employers might ask about taking on an apprentice.
How much does it cost to employ an apprentice in England?
For most small employers the main cost is the apprentice's wages, since the government funds 95% to 100% of the training. You may also receive a £1,000 payment for hiring an eligible apprentice aged 16 to 18.
How do you employ an apprentice?
Choose the apprenticeship, find an approved training provider, set up an apprenticeship service account, advertise the role, select your candidate, then sign the agreement and training plan. Your provider can support you at each stage.
What is the 42-day rule for apprenticeships?
The 42-day rule is the qualifying period for apprenticeship funding. An apprentice must be in learning for at least 42 days for the training provider to draw down government funding. In practice, it means an apprenticeship needs to run for a minimum period before the funding applies, so it's worth choosing the right apprentice and role from the start.
Can someone who isn't a UK national do an apprenticeship?
Yes, as long as they have the right to work and live in England and meet the residency conditions for the funding. You should run the same right-to-work checks you would for any other new hire.
Can you take on an apprentice as your first hire?
Yes, an apprentice can be your first employee. You'll need to set up as an employer, run compliant payroll, and put a workplace pension in place, just as you would for any first hire.
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