Hiring an apprentice in England in 2026 has an average cost of between £14,000 and £20,000 per year, comprised of direct wages along with minimal training contributions. This is offset by significant National Insurance exemptions, government funding and incentives.
How much does it cost to hire an apprentice?
“How much does it cost to hire an apprentice?” is one of the first questions an employer asks us when they are considering taking on an apprentice. Many smaller businesses in particular are unsure what they must contribute towards training costs and whether there is any financial assistance available to them.
For the vast majority of employers, the main direct cost will be their apprentice’s wages. As their employer, you are responsible for the entirety of your apprentices’ wages. The minimum wage for an apprentice aged under 19 is currently £8.00 per hour (as of April 2026). This equates to a gross annual salary of £15,600. You may also have auto-enrolment pension employer contributions to pay of around £300-400 per year if your apprentice is eligible.
How much are the training & assessment costs for an apprentice?
You’ll be pleased to learn that for most employers the training and assessment costs of your apprentice are completely covered.
The co-investment training fees for an apprentice aged between 16–24 are 100% government-funded for non-levy paying employers with no employer contribution at all. If you have an employee aged over 25 then you will pay a 5% employer contribution. The government covers the remaining 95%.
For levy paying larger employers, that’s those with a payroll over £3m, funds are drawn directly from your Growth and Skills Levy pot. As with non-levy paying employers, funding for under 25’s attracts no co-investment fee whilst for over 25’s there is a contribution of 25% should there be a shortfall in your fund.
What government support is available for the cost of an apprenticeship?
You’ll be pleased to know that there are also several schemes in place that provide incentives or support payments to help employers with the cost of an apprentice, particularly smaller businesses (SME’s).
These include an SME Hiring Incentive of £2,000 for non-levy employers recruiting a 16–24 year old starting from October 2026. This is paid at 90 and 365 days into the apprenticeship. There is also a Young Apprentice Payment of £1000 if your apprentice is aged between 16–18, or 19–24 with an EHC plan.
There is also National Insurance Relief. As an employer you will pay 0% secondary Class 1 NI for employees under 25 up to £50,270/yr.
Indirect costs of an apprentice
There are also some indirect costs to hiring an apprentice and it’s important that these are considered too. As an employer you will need to allocate internal staff time for mentorship and training whilst your apprentice learns their role. You may have recruitment overheads from advertising the role itself along with onboarding expenses. These costs can vary depending on the methods used.
You should also consider the additional budget required for any equipment that your apprentice needs to carry out their role. This may include software licenses, a computer, or specialist safety gear depending on their specific apprenticeship.
Pro-Apprenticeships, your partner in hiring an apprentice
If you would like to know more about how much it costs to hire an apprentice or, if you have questions about the process, our experienced team at Pro-Apprenticeships will be happy to help. We’re Ofsted Outstanding apprenticeship providers based in Bristol and provide our exceptional training and support to employers and apprentices across England.
To find out more please get in touch with us today.