From August 2026, apprenticeship funding in England changed significantly. For many employers, eligible training and assessment costs for apprentices aged 16–24 can now be fully government funded up to the relevant funding-band maximum. That materially changes the cost of bringing younger people into construction, although employing an apprentice is still far from cost-free.
The funding position changed for younger apprentices
The 2026–27 apprenticeship funding rules apply to new apprenticeship starts from 1 August 2026.
For employers that do not pay the apprenticeship levy, government can fund 100% of eligible training and assessment costs, up to the relevant funding-band maximum, where the apprentice is aged 16–24 when their apprenticeship training starts.
Similar support can apply to levy-paying employers that have used the available money in their apprenticeship service account. The precise funding position should be confirmed against the current rules before an employer commits to recruitment.
What does “100% funded” actually cover?
The phrase can easily be misunderstood. Full funding refers to eligible apprenticeship training and assessment costs up to the funding-band maximum. It does not mean employing an apprentice becomes free.
The employer still needs to budget for normal employment costs, including wages, everyday PPE, induction, supervision, normal travel and subsistence, and the time experienced workers spend supporting the apprentice. If the agreed training price exceeds the funding-band maximum, the excess may also fall to the employer.
A realistic workforce budget should therefore separate the training cost from the wider cost of employing and developing the person.
The position is different for older apprentices
The age of the apprentice can affect the funding calculation. For apprentices aged 25 and above, employer co-investment can still apply depending on whether the business pays the levy and whether sufficient levy funds are available.
That does not make an older apprentice a poor investment. It simply means training managers should establish the funding position before comparing recruitment options.
Employers should also remember that an apprenticeship must represent genuine occupational development. It should not be selected purely because the funding is attractive.
CITB-registered employers may have separate grant support
Government apprenticeship funding and CITB apprenticeship grants are separate mechanisms. CITB-registered construction employers may be able to access additional support, subject to current eligibility rules.
Before budgeting, check the latest CITB apprenticeship grant information and confirm the position for the specific apprenticeship, employer and learner.
Do not simply add headline funding figures together and assume that every business will receive the maximum amount. Each scheme has its own rules, evidence requirements and payment triggers.
Funding only works if the apprentice is properly supported
Reducing the training cost solves only one part of the skills problem. Construction apprentices need suitable work, structured learning, supervision and enough time to develop competence safely.
Employers should identify a suitable supervisor or mentor, define which tasks can be carried out independently and which still require direct support, and increase responsibility as competence develops. Project pressures should not result in an apprentice being treated as an additional experienced operative simply because the training is funded.
Additional development may also sit outside the funded apprenticeship. For example, IOSH Working Safely can provide a useful broader introduction to workplace risk, while experienced workers already doing their job may be better suited to a workplace-based construction NVQ than an apprenticeship.
What should you do now?
- Identify genuine vacancies or skills shortages that could support an apprenticeship.
- Check the apprentice’s age at the start of training.
- Establish whether your business pays the apprenticeship levy.
- Confirm the relevant apprenticeship standard and funding-band maximum.
- Obtain a clear training price from an approved provider.
- Check current CITB grant eligibility separately where applicable.
- Budget for wages, PPE, induction, supervision and normal employment costs.
- Appoint a suitable mentor or supervisor before the apprentice starts.
- Define a structured route from supervised learning to independent competence.
- Review the funding rules again before signing the final agreement.
Our professional view
The improved funding makes apprenticeships worth another look for construction employers that have previously considered the training cost a barrier. But the financial incentive should support a long-term workforce plan, not replace one.
The strongest apprenticeships combine funded training with meaningful workplace experience, competent supervision and a genuine job at the end of the development pathway.
Where employers are balancing apprentices with the development of existing workers, All Star Safety’s construction NVQs, IOSH courses and other training can form separate parts of the wider competence plan.