Why Now Is the Best Time to Hire a Young Apprentice in England
At a time when businesses across hospitality, travel, and service sectors continue to adapt to changing workforce demands, many employers are asking whether now is the right time to hire a young apprentice in England. Apprenticeships have become one of the most effective and sustainable ways to bring young talent into our industries and recent government reforms have made them more financially attractive and operationally flexible than ever before.
For employers looking to grow their talent pipeline, reduce recruitment costs, and contribute to long-term sector resilience, now truly is the ideal moment to invest in young people.
Below, I break down the current benefits available to employers in England when hiring a young apprentice and why these matter for our profession.
1. Employer Incentives for Hiring a Young Apprentice
One of the immediate advantages is the £1,000 employer incentive payment, available when hiring an apprentice who is:
Aged 16–18, or
19–25 with an Education, Health & Care Plan (EHCP) or who has been in care
This payment is delivered in two instalments and is designed to help employers integrate and support younger apprentices in the workplace.
2. Fully Funded Apprenticeship Training for SMEs (Under 25s)
For small and medium-sized employers, one of the most transformative changes is that the government now fully funds apprenticeship training for apprentices under 25.
This removes the previous 5% employer training contribution, an important shift that eliminates a major barrier for smaller businesses considering apprenticeships.
For many employers we support at Umbrella Training, this alone is a game-changer, making apprenticeships a low-risk, high-impact development route.
Not sure whether your business qualifies for fully funded apprenticeship training? Umbrella Training can help you understand eligibility and funding options quickly and clearly.
3. Lower Apprenticeship Training Costs for Larger Employers
Even for employers who are not SMEs, the government continues to cover 95% of apprenticeship training costs, leaving only a small co-investment required.
This ensures that apprenticeships remain one of the most cost-effective training and recruitment pathways available in the UK.
4. National Insurance Savings When Hiring an Apprentice Under 25
Another major financial benefit is that employers do not pay employer Class 1 National Insurance Contributions for apprentices under 25 earning under £967 per week.
This can save an employer up to £3,000 per year per apprentice—a substantial saving that contributes directly to bottom-line sustainability.
CTA – Cost Savings
Want to calculate how much your business could save by hiring a young apprentice? Our team can break down funding, wage costs, and NI savings specific to your organisation.
5. Lower Wage Requirements During Early Training
Apprentices can legally be paid the Apprenticeship Minimum Wage during their first year or if they are under 19. As of April 2025, this ranges from £7.55 to £12.21 per hour, depending on age and experience.
This makes onboarding talent more affordable for employers while maintaining fair, regulated compensation for young people starting their careers.
6. Develop Existing Staff Through Apprenticeships
Apprenticeships aren’t only for new recruits. Employers can also upskill existing employees through apprenticeship programmes, with the same funding rules applying.
This gives organisations the opportunity to grow internal talent with minimal financial outlay. With career progression being critical for retention—particularly in hospitality—this is a powerful workforce development tool.
CTA – Workforce Strategy
If retention and progression matter to your business, Umbrella Training works with employers to design apprenticeship strategies that genuinely deliver long-term value.
7. New Foundation Apprenticeships from 2026
From April 2026, foundation apprenticeships will expand into sectors such as hospitality, retail, digital, AI, and engineering. These programmes offer:
More flexible training models
Shorter, targeted pathways
Better alignment between employer needs and apprentice readiness
This reform supports businesses by supplying a new wave of job-ready young people trained in skills required for the future.
8. Faster Apprenticeship Completion Through Shorter Programmes
From 2026, some apprenticeships may be completed in as little as eight months, down from the current 12 months, where prior learning or industry need justifies it.
This enables young people to reach competency more quickly, supporting employers who need skilled individuals sooner.
9. Stronger Talent Pipelines Through Government Youth Programmes
Government initiatives such as the Youth Guarantee are designed to ensure young people can access pathways into work, training, or further education.
For employers, this creates access to a steady flow of motivated young candidates already engaged in pre-employment programmes, strengthening long-term workforce resilience across the sector.
10. Long-Term Workforce Benefits for Employers
Beyond financial incentives, apprentices deliver strong organisational value:
65% of apprentices remain with their employer long-term, significantly improving retention
Apprenticeships help address skills shortages and develop future managers and leaders
For hospitality and service industries—where talent development underpins guest experience—this impact is substantial.
Final Thoughts
The landscape for apprenticeships has never been stronger. With increased flexibility, generous funding, and clear pathways for young people to enter and grow within our industries, hiring a young apprentice in 2026 isn’t just a good development decision, it’s a smart business strategy.
At Umbrella Training, we remain committed to helping employers build exceptional apprenticeship programmes that create meaningful careers and drive long-term organisational success.
If you’d like support in shaping your apprenticeship strategy or exploring opportunities to bring young talent into your organisation, we’re here to help.