When the Autumn Budget was announced at the end of last year on 26 November 2025, it also introduced several measures that will influence apprenticeship funding, training opportunities and skills development over the following years.
In short, there are a host of changes set to impact apprenticeships but worry not, it’s positive news across the board, especially for employers.
Fully Funded Apprenticeship Training for SMEs (Under 25s)
Apprenticeship training for apprentices aged under 25 taken on by small and medium-sized businesses will be fully-funded by the Government from 1 April 2026.
This means that the previous employer contribution is scrapped and predicts that more SMEs will bring young talent into their workforce. There will likely be increased opportunities for young people and growth in entry-level roles across a multitude of sectors.
Apprentice National Minimum Wage Rising in 2026
The minimum wage will increase to £8 per hour from 1 April, revealing an even more attractive pathway into work and training for talented prospective apprentices.
Employer National Insurance Contributions
From 1 April, you may not need to pay Class 1 National Insurance contributions for an apprentice if they:
- Are under 25 years old
- Are on an approved UK government apprenticeship standard or framework
- Earn less than £967 a week (£50,270 a year)
The apprentice still pays Class 1 National Insurance contributions through their salary. This exemption only benefits the employer. More on this can be found here: HMRC’s guidance on paying National Insurance contributions.
Investment in Key Sectors Supporting Future Apprenticeships
Priority areas highlighted in the Budget are closely linked to apprenticeship pathways and future workforce demand. Areas such as:
Construction & Infrastructure
Digital & Technology
Green Energy, Sustainability and Engineering
Healthcare & Life Sciences
Manufacturing & logistics
What This Means for Employers
The Budget provides an incredibly supportive environment for organisations considering offering apprenticeships.
For SMEs, the main highlight of which is that SME apprentices who are under age 25 will have fully-funded training from 1 April 2026.
The apprentice wage increase also helps to strengthen candidate attraction whilst sector investment may expand apprenticeship pipelines.
One thing is evident, that apprenticeships remain an effective way to grow future talent and address skills gaps.
City of Bristol College is a trusted partner for both the apprenticeship sector and the employees within it and boasts a dedicated team who offer apprenticeship advice.
Whether you’re thinking of exploring the world of apprenticeships for the first time or looking to expand your team, the team is in place to support you through the recruitment process.
