First published on Monday, February 9, 2026
Last updated on Monday, February 9, 2026
National Apprenticeship Week shines a light on the positive impact apprenticeships make to individuals, businesses and the wider economy.
Apprenticeship figures have declined over the last ten years, with nearly one million 16- to 24-year-olds not in education or work. In response, the Government has announced more apprenticeship places, and further support for SMEs, certain regions, and giving priority to key and emerging skills.
So, why should employers consider an apprenticeship?
Rising minimum wages are causing recruitment headaches for employers. But with extra government support, including changes to financing, it might be a good time to consider an apprentice.
You’ll bring a young person into the workforce, to teach them a trade and new skills, and potentially, they’ll become a valuable long-term addition to the business.
What are the apprenticeship incentives for SMEs?
In the Autumn Budget 2025, the Chancellor announced that apprenticeship training costs for under 25s will be free for small and medium sized businesses. This is expected to come in August 2026.
And more good news for employers: the removal of Class 1 National Insurance contributions (NICs), which will help cushion increases in minimum wage. You may not need to pay National Insurance if:
the apprentice is under 25;
they are on an approved apprenticeship standard or framework; or
they earn less than £967 per week (£50,270 per year)
You can already get £1,000 for salary, costs, or uniform to support their apprentice. If you're providing a foundation apprenticeship, for instance in construction, engineering, health and social care, or digital, you may be eligible for £2,000 for salary, travel costs, or uniform. Check the gov.uk site for more guidance.
How to employ an apprentice
The first thing you need to do when hiring an apprentice is decide on an apprenticeship framework. Then, find an organisation that offers training for that framework. You can check what funding you’re eligible for, create an account to manage funding, and finally, advertise your apprenticeship.
Find detailed information on all these steps on Gov.uk, including how the process differs for England, Scotland, Wales, and Northern Ireland.
BrightHR tip: Get help writing job adverts and managing the recruitment process with Turbo Talent Navigator, an AI powered candidate management tool.
What kind of contract do apprentices need?
Apprentices need a contract of employment in Scotland and Northern Ireland. In England and Wales, you’ll need an Apprenticeship Agreement, which sets out skills, trade and occupation, amongst other things.
BrightHR tip: You can find all the documents you need in BrightBase, a library of expertly written HR content that’s up to date with all the relevant laws. Your apprentice will be able to access their documents via cloud-based document storage on their phone. Much easier than handling paperwork!
How much do I need to pay an apprentice?
Apprentices should earn at least the minimum wage. Their pay will increase every April, and this amount changes depending on their age and what year of their apprenticeship they are on. You can use the National Minimum Wage and Living Wage calculator to check if you’re paying your apprentices correctly.
BrightHR tip: Find a payroll software that automatically calculates rates of pay and updates them on relevant birthdays. Even better: BrightHR Managed Payroll puts your payroll in the hands of our CIPP-qualified experts, who manage the entire payroll process for you. They’ll keep your payroll compliant, talk to HMRC on your behalf, and provide accurate reports.
What employment rights do apprentices have?
Apprentices have the same employment rights as any other employee. With the right HR software, you can be sure they’re receiving the right holiday allowance, time off including time off for training, sick pay, and protection from discrimination.
BrightHR tip: This might be their first foray into the world of work, so let’s make it as easy for everyone as possible.
For more information about employing apprentices, speak to the BrightHR experts on 0800 470 2432 or book a demo here.
