2026/27 Levy Update: Funding Changes and Employer Incentives
Back in April we shared our 2026 Levy Guide. Since then, the detail has landed, and there’s a lot in it for employers – especially if you’re thinking about hiring young people. Smart Training and Recruitment are here to break it all down.
What’s changed with funding?
If you’re a levy payer:
Use it or lose it – faster. Levy funds now expire after 12 months, down from 24.
If you’re a non-levy payer:
Fee-free training for under 25s. There’s no employer contribution – the government covers 100% of training costs.
What incentives are available?
Here is everything you need to know about the financial support available and the best bit: these incentives can be stacked, so one apprentice could unlock more than one payment:
| Financial Incentive | Age Eligibility | Payment Schedule |
| £1,000 Additional Payment | 16 to 18 (and under 25 with an EHC plan or care leavers) | Paid in two equal instalments at Day 90 and 1 year after the Apprenticeship started (or Day 242 if under 12 months). |
| £2,000 Foundation Apprenticeship Incentive | 16 to 21 (and under 25 with an EHC plan, care leavers, or prison leavers) | Paid in three equal instalments: Day 90, Day 242 (8 months), and final payment upon progression to their next Apprenticeship. |
| £2,000 Non-Levy Hiring Payment (Starting 1 October 2026) | 16 to 24 (new employees) | Paid in two equal instalments at Day 90 and Day 365 (or Day 242 if under 12 months). |
| £3,000 Youth Jobs Grant | 18 to 24 (if earner was unemployed & on Universal Credit for 6+ months) | Paid in two instalments: £1,800 after 6 weeks and £1,200 after 18 weeks (paid directly by DWP). |
Other support worth knowing about:
No employer National Insurance for apprentices aged under 25.
£3,000 Care Leavers Bursary – paid directly to eligible apprentices aged under 25 who have been in care, in three instalments.
Jobs Guarantee – a DWP scheme offering fully subsidised work placements for long-term unemployed 16–24 year olds.
Why Smart?
Our achievement rates have improved year-on year and are now running at over 75%. We’re immensely proud of our team, our apprentices and the employers we work with for making that happen.
Ready to find out what you could claim?
Whether you’re a levy payer wanting to make the most of your funds before they expire, or a smaller business looking to take on your first apprentice, we’ll help you work out exactly what’s available.
Stay informed. Stay Smart. 🧠
