Employer Contribution Scrapped: 5% Apprenticeship Cost Removed for SMEs and Under-25s
The Government has confirmed that the 5% employer contribution for apprenticeships has been removed for eligible SMEs and apprentices under 25 as of April 2026
This means many small and medium-sized businesses can now access fully funded apprenticeships, removing a key financial barrier to investing in workforce development.
For SMEs looking to build skills, improve productivity, and future-proof their business, this is a significant opportunity.
What Does the 5% Apprenticeship Contribution Removal Mean?
Previously, non-levy paying employers (less than a 3 million wage bill) were required to contribute 5% towards the cost of apprenticeship training, with the Government funding the remaining 95%.
Under the updated funding rules:
- The 5% employer contribution has been scrapped for eligible SMEs
- Apprentices under the age of 25 qualify for fully funded training
- The Government now covers 100% of the training costs in qualifying cases
This change is designed to increase employer engagement and address skills shortages across the UK.
Fully Funded Apprenticeships for Small Businesses
For SME businesses, every financial decision matters. Removing the employer contribution makes apprenticeships for small businesses more accessible and less risky.
SMEs can now:
- Develop staff without direct training costs
- Upskill existing employees
- Recruit new talent with reduced financial commitment
- Close skills gaps in areas such as digital marketing, operations, and management
- Invest in long-term growth rather than short-term outsourcing
For many employers, this transforms apprenticeships from a “nice to have” into a strategic business decision.
Why This Matters for SME Growth
Many small businesses face challenges such as:
- Limited in-house digital skills
- Reliance on costly external agencies
- Skills shortages affecting productivity
- Lack of structured leadership development
With Government funded apprenticeships, SMEs can now build internal capability without increasing headcount or training budgets.
This policy change supports:
- Business growth
- Workforce retention
- Improved efficiency
- Stronger digital and operational performance
How NTG Training Supports Employers
At NTG Training, we help SMEs access fully funded apprenticeship programmes aligned to their business goals.
Our programmes are:
- Workplace-focused and practical
- Designed around employer needs
- Fully supported through the funding process
- Structured to deliver measurable business impact
If you are unsure whether your organisation qualifies under the updated funding rules, we can guide you through the eligibility process.
Is Your Business Eligible for Fully Funded Apprenticeships?
With the 5% apprenticeship contribution removed, now is the ideal time for SMEs to review their workforce development strategy.
If you would like to explore how fully funded apprenticeships could support your organisation, let’s have a conversation, no sales pitch, just a discussion about your business goals and how Government funding could help you achieve them.
