Across the UK nearly a million young people aged 16-24 are not in education, employment, or training (NEET). To address this, on 16 March, the Department for Work and Pensions launched a further package of reforms, some of which relate to apprenticeships.
The reforms bring opportunities for employers that will benefit business and help alleviate the NEET crisis. But they also bring the challenge of refocusing some well-established and successful apprenticeship programmes. At Damar, our priority is to keep employers and future apprentices informed and help you to make the best possible decisions for your business and your people.
Funding for existing apprentices is unaffected by the changes.
As further details are released, we will keep this article updated. Bear in mind that this is a summary, and it only includes those changes most closely linked to our provision. As ever, please speak to us if you are unsure.
Additional grants and incentives (from April 2026)
- £2,000 apprenticeship incentive payment for every apprentice aged 16 – 24 you hire (SMEs only)
- £3,000 Youth Jobs Grant for hiring young people aged 18 – 24 who have been claiming Universal Credit for six months (all employers).
Withdrawal of some apprenticeship standards
Sixteen of the apprenticeship standards most often undertaken by older apprentices are being removed from funding. Of the apprenticeships we deliver at Damar, only operations manager and team leader are affected. Provider starts (including at Damar) have been capped, which in most cases means only very limited capacity for further enrolments.
Despite these changes, apprenticeships can still be used to support in-work skills development and higher-level programmes up to level 6 (degree level) and remain available for eligible colleagues of all ages. Level 7 apprenticeships are only funded for apprentices who start their programme before their 22nd birthday.
Other financial support for employers
The new £2,000 apprenticeship incentive payment and Youth Jobs Grant are part of a wider support package, which also includes:
- 16-18 year old incentive: £1,000 for apprentices aged 16-18 (existing scheme for all employers continues alongside new incentives)
- Employer National Insurance exemption: Complete exemption from employer’s National Insurance contributions for all apprentices under 25 (subject to a salary cap of £50,270).
This means that in some cases, organisations could receive up to £5,000 in combined incentives for hiring a young person as an apprentice – as well as making substantial National Insurance savings for the duration of the apprenticeship.
The government is also raising the upper age limit of its jobs guarantee scheme, from 21 to 24, starting in August. This scheme fully subsidises jobs for young people who have been unemployed for 18 months, covering all employment costs for up to 25 hours a week for six months. Initially, the increased upper age limit will apply to Birmingham and Solihull, East Midlands, Greater Manchester, Hertfordshire and Essex. This raises the interesting opportunity of progression from a job guarantee role into permanent work supported by an apprenticeship.
No-cost apprenticeship recruitment support from Damar
For 45 years, Damar has been helping employers recruit and develop young talent. Whilst government incentives are helpful, recruitment can be time-consuming and expensive. Our experienced team is on hand to provide support.
We handle the entire recruitment process:
- Source and screen candidates from our extensive network
- Manage interviews and assess suitability
- Handle compliance, agreements and funding applications
- Provide ongoing training and support.
Damar’s apprenticeship recruitment service is completely free. We don’t just help with entry-level hiring – our programmes are built with progression to higher level apprenticeships in mind as well as to HE and other commercial programmes, in each case helping you build high-performing teams that can grow with your business.
Changes to the Growth and Skills Levy
Larger employers need to bear in mind previously announced changes to the Growth and Skills Levy (formerly the Apprenticeship Levy). From 1 August 2026:
- The additional 10% government top-up will no longer apply
- The expiry window for levy funds will reduce to 12 months from 24 months
- For employers who exhaust their levy funds, employers will need to pay 25% of the additional costs, with the government paying 75% (previously 95%).
Even with these changes, most employers will still have significant unspent funds which may now need to be deployed in other areas. Damar is here to support you.
Your management pipeline
The level 3 team leader and level 5 operations manager standards have made a huge and positive difference to organisations and their workforces, and the defunding of these apprenticeships does not remove the need for continued investment in management skills. Our offer will evolve so that employers can continue to develop their people in a cost-effective manner.
Lee Hill, Commercial Director, Damar Training said: “Our partners rely on apprenticeships to develop their people and strengthen their organisations. As reforms occur and the new world takes shape, our focus is simple. We continue to work alongside employers to adapt quickly, protect progression routes and make sure the training we deliver continues to support both recruiting and developing new talent alongside their existing teams.”
Take action today
These changes mean that now is the perfect opportunity for employers to review their workforce development strategies.
Contact Damar Training today. We’ll guide you through recruitment, incentive claims and talent development – so you can attract and develop future talent and upskill your existing teams.