From September 2026-27, the government will fully fund the cost of training eligible apprentices aged 16-24 with non-levy paying employers. These are primarily small to medium size businesses who do not pay the apprenticeship levy.

‘This new measure will make training and assessment completely free for SMEs who hire young people, boosting starts and reducing bureaucracy for both SMEs and providers,’ said a spokesperson at the Department for Work and Pensions (DWP).

In the Budget speech on Wednesday, Rachel Reeves told MPs: ‘I am announcing funding to make the training for under-25 apprenticeships completely free for small and medium sized enterprises.’

The government definition of an SME is an enterprise with two of the following: fewer than 250 staff; less than £44m in annual turnover, or a balance sheet total of less than or equal to £38m.