The short version
- The apprentice minimum wage is £8.00 an hour from April 2026, for under-19s and anyone in their first year.
- Training is free for apprentices aged 16 to 24 at non-levy employers. 25 and over: you pay 5%.
- No employer National Insurance on eligible earnings for apprentices under 25.
- Hire someone new aged 16 to 24 and get a £2,000 payment. Plus £1,000 more if they're 16 to 18.
- Worked example: a 19-year-old on 30 hours costs about £10,480 in year one, after the payment.
The short answer
Hiring an apprentice costs you their wages. That's mostly it.
For a small employer taking on someone aged 16 to 24, the training is paid for, the employer National Insurance is zero, and since 1 October 2026 there's a £2,000 payment for hiring them. Everything else is admin, and your training provider does most of that.
1. Wages: what you have to pay
Apprentices are employees. They get a contract, holiday and a wage. The legal minimum from April 2026, according to the GOV.UK minimum wage rates:
| Who | Hourly minimum |
|---|---|
| Apprentice rate: under 19, or 19+ in their first year | £8.00 |
| Apprentice aged 18 to 20, after year one | £10.85 |
| Apprentice aged 21+, after year one | £12.71 |
Most apprentices work at least 30 hours a week, including their paid training time. In London, plenty of employers pay above the minimum to get better candidates. It's worth it. A strong apprentice is cheaper than a bad hire.
2. Training: usually free
Apprenticeship training is paid from government funding. What you pay depends on two things.
| Apprentice 16 to 24 | Apprentice 25+ | |
|---|---|---|
| Non-levy employer (pay bill under £3m) | £0 | 5% of the funding band |
| Levy payer | From your levy, then fully funded | From your levy, then 25% co-investment |
Each apprenticeship has a funding band. A Level 2 Customer Service Practitioner is £3,500, so 5% is £175. The Level 4 AI & Automation Practitioner is £18,000, so 5% is £900. Levy payers, see our Growth and Skills Levy guide.
3. National Insurance: zero for under-25s
You don't pay employer Class 1 National Insurance on an apprentice under 25, on earnings up to the upper secondary threshold (£50,270 a year). Your payroll uses a different category letter. Details are on GOV.UK's page on National Insurance category letters.
On a £12,480 salary, that's roughly £1,100 a year you'd otherwise pay at the 15% employer rate.
4. Payments the government gives you
- £2,000 hiring payment. For non-levy employers taking on an apprentice aged 16 to 24 who starts on or after 1 October 2026 and joined you no more than 90 days before training starts. You don't apply. It's checked at day 90 and day 365. See the official help article.
- £1,000 payment. For any employer with an apprentice aged 16 to 18, or an under-25 care leaver or someone with an EHC plan.
They can be combined. A small employer hiring a 17-year-old could get £3,000. Payments go through your training provider, so the first £2,000 payments land from January 2027. More detail in our apprenticeship funding guide.
A worked example
A small London business, not a levy payer, hires a new 19-year-old apprentice on 30 hours a week at the £8.00 apprentice rate.
| Item | Cost |
|---|---|
| Wages: £8.00 × 30 hours × 52 weeks | £12,480 |
| Training | £0 |
| Employer National Insurance | £0 (saves about £1,120) |
| £2,000 hiring payment | −£2,000 |
| Net cost in year one | about £10,480 |
That's about £200 a week for a full team member who's being trained in your way of doing things. Pension auto-enrolment doesn't kick in until staff are 22 and earn over £10,000, so it doesn't apply here.
Want this worked out for your role? Try the cost calculator on our hire an apprentice page. It takes 20 seconds.
The costs people forget
- Manager time. Someone needs to supervise and review progress. Budget an hour a week.
- Training time. Apprentices spend paid hours on off-the-job training. It's part of their working week, agreed in the training plan.
- Equipment. A laptop and the usual kit. Our AI apprenticeship includes the AI tool subscriptions.
What you don't pay: recruitment ads. Vacancies can go on GOV.UK's free Find an apprenticeship service, and your provider can post and shortlist for you. The GOV.UK guide to employing an apprentice covers the legal basics.
Apprentice vs a standard hire
| Apprentice under 25 | Standard hire, 21+ | |
|---|---|---|
| Minimum pay | £8.00 an hour in year one | £12.71 an hour |
| Employer NI | £0 | 15% above £5,000 |
| Structured training | Funded, with a qualification | You pay, or none |
| Government payments | Up to £3,000 | None |
What to do next
Decide the role, then the apprenticeship that fits it. We deliver programmes in AI and automation, marketing, content, business admin, customer service, IT support, early years and care. If you'd rather upskill someone you already employ, read how to train an existing employee through an apprenticeship.
Quick answers
How much does it cost to hire an apprentice in 2026?
Mainly their wages. The apprentice minimum wage is £8.00 an hour from April 2026. Non-levy employers pay nothing for training if the apprentice is 16 to 24, pay no employer National Insurance for under-25s, and can get a £2,000 hiring payment. A 19-year-old on 30 hours costs about £10,480 in year one after the payment.
What is the apprentice minimum wage in 2026?
£8.00 an hour from 1 April 2026 for apprentices under 19, or aged 19 and over in their first year. After the first year, apprentices aged 18 to 20 get at least £10.85 and those 21 and over at least £12.71.
Do employers pay National Insurance for apprentices?
Not for apprentices under 25, on earnings up to the upper secondary threshold of £50,270 a year. Above that, or for apprentices aged 25 and over, normal employer National Insurance applies.
Who gets the £2,000 apprenticeship hiring payment?
Employers who don't pay the levy, for apprentices aged 16 to 24 who start on or after 1 October 2026 and joined the business no more than 90 days before their training starts. There's no application. It's paid through the training provider.
Is it worth hiring an apprentice for a small business?
Usually yes, if you have real work and someone to supervise. Training is free for under-25s, there's no employer NI, and government payments of up to £3,000 offset most of the extra cost of supervision.
Keep reading
Last updated . Funding rules are for England and can change. We check them against GOV.UK before every update. This guide is general information, not financial or legal advice.