How new government incentives could make now the perfect time to invest in future talent with Velocity Academy
The UK Government is making one of the biggest investments in apprenticeship recruitment in recent years, introducing a series of new financial incentives throughout 2026 that are designed to help employers recruit, train and retain young talent.
Whether you’re a growing SME looking to fill technical skills gaps or an established organisation planning your workforce strategy, these changes could significantly reduce the cost of hiring apprentices while giving your business access to the skilled professionals you need.
At Velocity Academy, we’re helping employers take advantage of these opportunities by delivering high-quality digital and technology apprenticeships, including our Level 4 AI & Automation Practitioner, Level 4 Network Engineer, Level 4 Software Developer, Level 3 Information Communications Technician, Level 3 Data Technician, Level 3 Multi-Channel Marketer, Level 3 Business Administrator, and many more.
Let’s take a closer look at what’s changing.
From June 2026, employers across Great Britain can claim a £3,000 Youth Jobs Grant for every eligible young person aged 18 to 24 they recruit who has been looking for work for six months or more. The grant forms part of the Government’s wider Youth Guarantee programme, which aims to help thousands of young people move into meaningful employment.
For employers already considering taking on an apprentice, this funding provides an excellent opportunity to reduce recruitment costs while investing in long-term skills.
If you’re hiring into areas experiencing skills shortages such as AI, cyber security, networking, software development or IT support—this grant can help offset the initial costs of bringing new talent into your organisation.
One of the biggest changes arrives in August 2026.
Currently, many non-levy paying employers receive full funding for apprentices aged up to 21, with additional eligibility for some older learners. From August, the Government is extending 100% funded apprenticeship training for eligible apprentices aged 16 to 24 working for smaller businesses that do not pay the Apprenticeship Levy.
This removes a significant financial barrier for SMEs.
Instead of contributing towards apprenticeship training costs, many eligible businesses will receive full funding for the apprenticeship programme, making it easier than ever to invest in young talent.
For companies looking to modernise their technology, improve automation, strengthen cyber resilience or build internal digital capability, this is a major opportunity.
From October 2026, smaller businesses in England that do not pay the Apprenticeship Levy can also receive a £2,000 Apprenticeship Hiring Payment when recruiting a new apprentice aged 16 to 24.
The Government has announced this incentive as part of its ambition to create 50,000 additional apprenticeships for young people.
For some employers, this payment can be combined with the new £3,000 Youth Jobs Grant, meaning eligible businesses may benefit from up to £5,000 in recruitment incentives, alongside fully funded apprenticeship training where applicable.
Many employers are already eligible for a £1,000 support payment when recruiting apprentices who meet certain criteria.
This payment is available if, at the start of their apprenticeship, the apprentice is:
This funding is designed to help employers provide additional workplace support during the apprentice’s development.
Recruiting experienced professionals remains expensive and increasingly competitive.
Many organisations are struggling to recruit skilled employees in areas such as:
Apprenticeships offer an alternative approach developing talented individuals who learn your systems, your culture and your ways of working from day one.
With the new incentives arriving throughout 2026, the financial case has become even stronger.
At Velocity Academy, we specialise in helping employers develop digital talent that delivers real business value.
Our programmes are designed around today’s in-demand technical skills while enabling apprentices to contribute immediately within the workplace.
Popular programmes include:
Level 4 AI & Automation Practitioner
Help your organisation embrace artificial intelligence by developing professionals who can:
As AI rapidly becomes a competitive advantage across every industry, organisations investing in these skills today will be better positioned for tomorrow.
Understanding apprenticeship funding can sometimes feel complex but you don’t have to navigate it alone.
Our employer engagement team can help you:
Whether you’re interested in developing AI capability, strengthening your IT infrastructure, or growing your next generation of digital professionals, Velocity Academy is here to support your journey.
Ready to future-proof your workforce?
Speak to the team at Velocity Academy today to discover how the upcoming apprenticeship funding changes can help your business recruit smarter, reduce costs, and develop the skilled workforce your organisation needs for the future.
I have loved every part of my Marketing apprenticeship with Velocity Academy. Paired with hands on experience at JCB, a leading construction and agricultural equipment manufacture and the outmatched guidance from the Velocity team, I achieved a distinction for this course.
We have chosen to continue, and expand, our partnership with Velocity Academy due to outstanding working relationship we’ve built together. From the very beginning, Velocity have shown exceptional flexibility in accommodating our evolving requirements, often going above and beyond to tailor their delivery to our operational needs, always putting the wellbeing of the learners first. Velocity Academy have delivered consistent quality in both teaching and customer services (namely Lee and Emma) making them a trusted partner in delivering apprenticeships to our employees.
My experience with Graham at Velocity Academy has been nothing short of exceptional. His professionalism, expertise, and commitment to finding the right apprentices have been very impressive.
Once the candidates were selected, the transition to getting them on board was remarkably quick and seamless. Graham efficiently handled all the necessary paperwork and administrative tasks, making the onboarding process hassle-free.
I would recommend their services to anyone in search of apprentices who will make a positive impact on their business. Our apprentices are excelling in their roles and continuously developing their skills.
Velocity Academy sourced a fantastic Apprentice Developer on our behalf and we couldn’t have been happier with the service. Regular check-ins, guidance and support from the start and genuine care were put into the recruitment process from Velocity, which meant they came up trumps with a cracking candidate. They have been outstanding. Thanks Velocity!
