Apprenticeship Benefits & Incentives for Employers: How to save costs and build a skilled workforce

In a competitive market, finding and retaining skilled staff can be one of the biggest challenges for any organisation.  Apprenticeships are a powerful solution – combining hands-on work experience with professional training to create confident, capable employees who are aligned with your business goals. 

Taking on an apprentice can also be financially rewarding. From National Insurance exemptions to government incentives, there are multiple ways to reduce costs while strengthening your team. 

At Fareport Training, we specialise in helping businesses of all sizes access these benefits and make the most of Apprenticeship opportunities. Here’s your guide to the current key incentives available and how your business can take advantage of them. 

If your apprentice is under 25 years old and earns less than the upper secondary threshold (£967 per week in 2025), you won’t need to pay Class 1 National Insurance contributions for them.

• Reduces employment costs for younger staff 

• Encourages you to invest in long-term talent 

• Immediate savings from the first payday 

If you take on an apprentice aged 16–18, you’ll receive a £1,000 payment to support their training and development. This incentive is also available for apprentices aged 19–24 with an Education, Health and Care (EHC) plan or those who have been in the care of their local authority. 

• Offsets early training costs 

• Makes it easier to offer opportunities to young people 

• Encourages workforce diversity 

From August 2023, eligible apprentices who have been in care can receive a £3,000 bursary. While this is paid directly to the apprentice, it can still be a significant factor for employers in supporting recruitment and retention. 

• Attracts motivated candidates who may need financial support 

• Improves staff wellbeing and retention 

• Demonstrates your company’s social responsibility 

If your organisation’s annual payroll is over £3 million, you’ll pay the Apprenticeship Levy — 0.5% of your wage bill. The funds can only be used for Apprenticeship training, and expire after 24 months if unused. 

Not a levy payer? You can still benefit. Many large employers transfer their unused levy funds to SMEs in their sector. This can cover up to 100% of your Apprenticeship training costs. 

• SMEs can access high-value training fully funded 

• Strengthens collaboration within your sector 

• Maximises return on unused levy funds for large businesses 

Recruiting new staff can be costly and time-consuming. Apprenticeships allow you to upskill the team you already have, aligning learning with your business needs and culture. This often leads to: 

• Faster productivity gains 

• Higher retention rates 

• Lower recruitment and onboarding costs 

In today’s competitive market, employers are under pressure to develop staff quickly while controlling costs. Apprenticeships: 

• Provide nationally recognised qualifications 

• Combine practical learning with theory 

• Can be tailored to your operational priorities 

• Support staff progression from entry-level to management 

At Fareport Training, we deliver Apprenticeships in: 

• Learning & Development 

• Leadership & Management 

• Marketing 

• Health & Social Care 

• Professional Services 

Whether you’re a levy payer or SME, we can help you access funding, design programmes around your needs, and support your team from day one to completion. 

So, if you’re interested, contact Fareport today to learn how we can help you or your staff gain valuable qualifications and successfully navigate the EPA process. 

📞 Call us: 01329 825 805 

📧 Email us: info@fareport.co.uk 

🔗 Learn more: Fareport Training Apprenticeships 

 Let’s unlock your team’s potential together.