Fully Funded Training for Under 25s
There is some genuinely positive news for employers looking to grow their teams and invest in future talent.
A major change to apprenticeship funding announced by the Department for Education means that, from 1 August 2026, employers will benefit from 100% government funding for the training and assessment costs of apprentices aged 16 to 24. This removes one of the last remaining financial barriers to hiring young people through apprenticeships.
For employers considering apprenticeships as part of their recruitment strategy, the conversation is rapidly shifting from:
"Can we afford to hire an apprentice?"
to
"Can we afford not to?"
What Has Changed?
The government has confirmed that employers will no longer have to make a co-investment contribution towards apprenticeship training costs for eligible apprentices aged 16 to 24. Instead, training and assessment costs will be fully funded.
In addition, businesses recruiting young apprentices can continue to benefit from:
No employer National Insurance contributions for apprentices under 25
Potential access to additional hiring incentives and grants worth up to £6,000
A wider pool of motivated young talent looking to start their careers
For non-levy paying employers, this means apprenticeship training for under 25s is now fully funded, making apprenticeships one of the most cost-effective recruitment and workforce development solutions available.
What Could This Look Like in Hospitality?
Let's take the Hospitality Team Member Level 2 Apprenticeship as an example.
Whether you run a hotel, restaurant, café, pub, contract catering operation or leisure venue, finding and retaining quality staff remains one of the biggest challenges facing the hospitality sector.
A Hospitality Team Member apprentice can be trained across a range of customer-facing and operational roles, including:
Food and beverage service
Front of house
Reception
Housekeeping
Bar service
Event operations
Customer service
With the new funding changes, employers can bring a young person into the business, develop them with structured training and industry-recognised qualifications, and have the training costs fully funded by government.
Instead of paying recruitment agency fees or continually replacing staff, businesses can invest in developing loyal team members who learn their organisation's culture, standards and values from day one.
What this means in practice
The example below compares the training and assessment costs for a Hospitality Team Member Level 2 apprenticeship with a £4,000 funding band, where levy funds have been exhausted.
If the apprentice is aged 16 to 24
From 1 August 2026:
Employer contribution: £0 (0%)
Government contribution: £4,000 (100%)
In this example, a levy-paying employer recruiting a Hospitality Team Member apprentice aged under 25 would save their business £1,000 in training and assessment costs once levy funds have been exhausted.
If the apprentice is 25 or over
From 1 August 2026:
This does not affect the previously announced co-investment rate for learners aged 25 and over. From 1 August 2026, the co-investment rate will be 25%, meaning levy-paying employers will contribute 25% of training and assessment costs once their levy funds have been exhausted.
These changes apply to new apprenticeship starts only. Existing apprentices already on programme will continue to receive the previous 95% government co-investment rate once levy funds have been exhausted.
In simple terms: a hospitality employer recruiting a 16 to 24-year-old Hospitality Team Member apprentice will see the full £4,000 training cost covered by government funding, while also potentially benefiting from National Insurance savings and other available incentives.
Why This Matters
The hospitality industry has long relied on developing talent through practical, hands-on learning. Apprenticeships provide exactly that.
Young people gain:
Real employment from day one
Industry-recognised qualifications
Career progression opportunities
Valuable workplace experience
Employers gain:
A pipeline of future talent
Improved staff retention
Increased productivity
Reduced recruitment costs
The ability to shape skills around their specific business needs
With training now fully funded for under 25s, the return on investment becomes even stronger.
A Fantastic Opportunity for Growth
The government's announcement forms part of a wider commitment to increasing opportunities for 16 to 24-year-olds and supporting employers to create more apprenticeship opportunities.
For hospitality businesses planning for growth, expansion or workforce succession, this funding change creates an ideal opportunity to bring new talent into the industry.
The businesses that act now will be best placed to build skilled, committed teams for the future.
Ready to Explore Apprenticeships?
At Umbrella Training, we work with hospitality employers across the UK to recruit, train and develop apprentices who can make a real impact on their business.
If you've been thinking about growing your team, developing future talent or creating a stronger workforce pipeline, now is the perfect time to start the conversation.
Get in touch with the Umbrella Training team today to find out how apprenticeships could support your business and how these new funding changes can help you make the most of the opportunity.