Law Apprenticeships: employer funding rules
Everything a law firm needs to fund an apprentice under the rules for starts from 1 August 2026, with the changes from the 2025/26 rules flagged.
Who you can get funding for
Existing and new employees
Apprenticeship funding isn't just for new hires. You can also use it to upskill people already on your team. Either way, the apprentice must be on your payroll before training begins, with a contract of employment, a signed apprenticeship agreement and a training plan in place.
Right to work for the full term
Apprentices need the right to live and work in the UK for the entire apprenticeship, including the end-point assessment. If a visa expires before the planned end date, they can't be funded. A renewal that's expected but not yet granted doesn't count. Their main workplace, where they spend at least 50% of their time, must be in England.
An approved standard
Training must be delivered against an approved apprenticeship standard by a provider on the APAR register, and it must equip the apprentice with substantial new skills. The apprenticeship can sit at a higher, equal or even lower level than qualifications the person already holds, as long as the content is materially different.
Looking at this from the apprentice's side? See the learner eligibility rules.
What apprenticeship funding covers
A quick side-by-side of what's paid for from the funding pot vs what stays with you as the employer.
- ✓Apprenticeship training costs
- ✓End-point assessment and first attempts at exams required by the apprenticeship standard
- ✓Learning support and reasonable adjustments for disabilities
- ✓English and maths up to Level 2 (funded separately, not from your levy)
- ✗Wages and salary
- ✗Resit exam and end-point-assessment fees
- ✗Professional membership fees and licences to practise
- ✗Training that isn't required by the standard
Your organisation's funding depends on your pay bill
The rules split at an annual pay bill of £3m. Select yours to see exactly how funding works.
You don't pay the levy
Annual pay bill under £3m
Incentive & additional payments
These sit on top of funded training. None of them come out of your levy account. Showing what applies to non-levy employers.
Younger apprentices
Per apprentice aged 16–18, or 19–24 with an EHCP or who is/was in local-authority care. Paid via your provider in 2 equal instalments, at 90 days and 365 days.
Foundation apprenticeships
Up to £2,000 employer incentive for each eligible foundation apprenticeship start, paid in instalments. The apprentice must stay on programme to trigger each instalment.
SME hiring payment
For non-levy employers recruiting apprentices aged 16–24 who started their job within the previous 3 months. Two instalments; the first after 90 days on programme.
Youth Jobs Grant
For hiring 18–24s who've claimed Universal Credit for 6+ months (all employers). Stackable with the £2,000 hiring payment; claim mechanics still to be confirmed.
No employer NI under 25
No employer National Insurance on apprentices under 25 earning below £50,270, a long-standing HMRC relief typically worth £2,000–£3,000 per apprentice each year.
Your key obligations
Funding comes with conditions. Miss these and the apprentice may have to be withdrawn, so build them in from day one.
Pay at least the apprentice minimum wage
£8.00/hr from 1 April 2026 for under-19s and first-year apprentices; older apprentices past year one get their age-band NMW. Underpayment means the learner must be withdrawn.
Give paid off-the-job training time
Off-the-job training happens within normal working hours. Each standard now has a set minimum number of hours; the old blanket 20% / 6-hours-a-week rule has gone.
Cover costs and keep records
You cannot ask the apprentice to contribute to training or assessment costs, and you must keep an evidence pack, agreement, workplace and PAYE details, with your provider.
Grow your own talent, and keep it
Apprenticeships don't just fill a role. The evidence shows they build loyalty.
of employers say apprentices improved staff retention
of apprentices stay with the same employer after completing
of apprentices are satisfied with their apprenticeship
of completers report a positive impact on their career
Source: DfE apprenticeships evaluation surveys.
What changed on 1 August 2026
These changes apply to apprenticeships starting on or after 1 August 2026. Showing the changes relevant to non-levy employers.
Level 7 restriction (since 1 January 2026)
For apprenticeships starting on or after 1 January 2026, Level 7 apprenticeships, including the solicitor and graduate solicitor apprenticeships, are government-funded only for apprentices aged 16 to 21, or 22 to 24 with an education, health and care (EHC) plan or care-leaver status. Apprentices who started before 1 January 2026 are funded to completion.
Not sure how the rules apply to your firm?
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Open the calculatorSources: DWP/DfE Apprenticeship Funding Rules Aug 2025–Jul 2026 (v3, Jan 2026); Apprenticeship Funding Rules Aug 2026–Jul 2027 (v1, Jun 2026) and Summary of Changes; GOV.UK 'Apprenticeship funding' guidance (updated Apr 2026). England only, Scotland, Wales and Northern Ireland have separate systems. General guidance, not legal or financial advice. Updated October 2026.