How to take on an apprentice in 2025

Earning while learning is the name of the game, and taking on an apprentice is a great way to recruit for your small business and develop homegrown talent.

Unlike a regular employee, an apprentice is hired with the goal of learning on the job while working towards a formal qualification – gaining hands-on experience while studying for a qualification.

Hiring an apprentice is not only cost-effective for an employer, but it also helps address any skills shortages, improve retention, and boost productivity.

However, new rules around apprenticeships have changed this year, so it’s important to make sure you understand the latest regulations before taking one on.

In this article, we’ll share the essential steps in hiring an apprentice, including the new rules, how much you have to pay them, and important considerations to help you bring on the right apprentice and set them – and your business – up for success.

What is an apprentice?

An apprentice is someone who works for an employer while receiving training to learn a specific trade, skill, or profession.

Apprentices split their time between on-the-job experience and classroom-based study (usually through a college or training provider). An apprentice aims to gain real-world skills, a qualification, and hands-on experience that prepares them for a full-time career.

The main difference between an apprentice and an employee is that an apprentice is hired primarily to learn a trade or profession, not just to work. While they do earn under the National Minimum Wage, their role includes formal training and skills development.

In the UK, there are seven apprenticeship levels, from entry-level to degree-level programmes. They are as follows:

Level	Equivalent education level	Typical duration
Level 2	GCSEs (grades 4-9/A*-C)	12-18 months
Level 3	A Levels	18-24 months
Level 4	Foundation degree/HNC	24 months +
Level 5	Foundation degree/HND	2-3 years
Level 6	Bachelor's degree	3-4 years
Level 7	Master's degree	3-5 years

Apprenticeship changes for 2025

As of August 2025, there have been some new rules around how apprenticeships are funded and delivered. Under the UK government’s Apprenticeship Funding Rules for 2025 to 2026, here’s a breakdown of the new changes:

• Foundation apprenticeships: a new entry-level option for young people that aligns with Level 2 standards.
• Faster apprenticeships: some apprenticeship standards will be cut down to as little as eight months, but only if applicable. For example, if someone already has relevant experience and doesn’t need a full year of training.
• End-point assessments: the government has introduced new apprenticeship assessment principles, making the evaluation process more flexible, proportionate, and better aligned with real-world skills rather than rigid checklist criteria.
• Easier off-the-job training: a set minimum for off-the-job training (OTJT) for each apprenticeship standard, meaning employers no longer have to calculate this.
• Optional English and Maths: functional skills in English and Maths are now optional for apprentices aged 19 and over.

7 steps to hire an apprentice

Hiring an apprentice is a smart way to grow your business while developing new talent.

But bringing on an apprentice is slightly different from hiring a regular employee. From defining the role and choosing the right training provider to understanding and supporting on-the-job learning, these are the seven steps to hiring an apprentice the right way.

1. Define your needs and the role

First, you’ll need to figure out exactly what kind of apprentice your business needs, including the skills, qualifications, and responsibilities the role will involve.

You should also think about where an apprentice could make the biggest impact. For example, to support an existing team, fill a skills gap, or bring in fresh ideas.

Once you know that, outline the key tasks they’ll take on and the training they’ll receive. It’s also worth deciding early on what level of apprenticeship fits best – whether it’s entry-level for someone just starting out, or higher-level for someone developing more advanced skills.

2. Consider funding and legal requirements

There are several funding options available to hire an apprentice, depending on the size of your payroll. These include:

Growth and Skills Levy (annual pay bill over £3m)

Employers contribute 0.5% of their annual pay bill to the Growth and Skills Levy. These funds are available through the Apprenticeship Service account, where companies can manage and allocate them for apprenticeship training and assessment. The government also adds a 10% top-up to the funds in the account.

Co-investment (annual pay bill under £3m)

Employers pay 5% of the training and assessment costs, while the government covers the remaining 95% (up to the funding band maximum). With this, the employer agrees on a payment schedule with the training provider and pays them directly, and the government pays the remaining amount.

Incentive payments

This includes £1,000 incentive funding for businesses with apprentices aged under 19, or aged between 19-24 if they have an education, health and care (EHC) plan or have been in care. Businesses can also get up to £2,000 to support an apprentice if they’re doing a foundation apprenticeship and are aged 16-21. This also applies to those aged 22-24 with an EHC plan who have been in care, or are in prison or leaving prison.

National Insurance Exemption

Employers are exempt from paying National Insurance Contributions (NICs) for apprentices under 25 earning under £50,270 annually.

3. Choose a training provider

The apprentice’s training provider is the organisation approved to deliver the training and educational side of an apprenticeship, and is responsible for off-the-job training.

They also work alongside employers to ensure apprentices get the skills, knowledge, and qualifications required by their apprenticeship standard.

Here are a few reputable training providers to consider:

Name	Specialisation
Baltic Apprenticeships	Digital and IT apprenticeships
Firebrand Training	Cybersecurity, IT, and project management
Apprentify	Digital, sales, and tech apprenticeships
Kaplan Financial	Accountancy, tax, and financial services
PeoplePlus	Employability, adult education, and apprenticeships
The Manchester College	Vocational education and apprenticeships
NTU (Nottingham Trent University)	Higher and degree apprenticeships

However, when considering an apprenticeship training provider, you shouldn’t just think about cost. Make sure to look into things like their Ofsted rating and accreditation, expertise in your industry, their delivery methods, support and mentoring, the level of involvement, and success rate.

4. Carry out the recruitment process

Next, you’ll need to carry out your usual recruitment process – just like you would when hiring a regular employee.

This includes writing the job description, posting the vacancy, shortlisting candidates, conducting interviews, and checking references to find the best fit for your apprenticeship role.

5. Complete the paperwork and start onboarding

Before hiring the apprentice, you’ll first need to complete the legal paperwork. This includes:

• An employment contract outlining the apprentice’s required hours, pay, role responsibilities, company benefits (e.g. annual leave and sick leave), and probation period.
• An apprentice agreement that outlines the apprenticeship standard, its duration, training plan and end-point assessment details, and employer and apprentice responsibilities.

Additionally, you’ll need to ensure you understand your legal duties, including paying at least the NMW for apprentices and allowing time for off-the-job training (usually at least 20% of their working hours).

Once you’ve completed this, you can carry out your usual onboarding process. This includes introducing the apprentice to your team, explaining the human resources (HR) policies and procedures, and setting up their workspace.

6. Appoint a mentor

Make sure to assign a mentor or supervisor to support the apprentice as they settle in. They should also guide the apprentice through their role, support their learning, and help them to develop the skills they need to succeed.

If you’re unsure about how to choose the right person, consider the following:

• Experience and knowledge: the mentor should have strong experience in the role or sector the apprentice is working in, plus a good understanding of the skills and knowledge the apprentice needs to develop.
• Communication skills: mentors must be able to explain tasks clearly, give constructive feedback, and answer questions patiently. They should also be approachable so the apprentice feels comfortable asking for help.
• Commitment and availability: choose someone who has enough time to meet regularly with the apprentice, monitor progress, and provide feedback.
• Understanding apprenticeships: ideally, the mentor should understand the structure of apprenticeships, including off-the-job training and end-point assessments, as well as help the apprentice balance work and learning effectively.
• Respect and professionalism: the mentor should act as a role model, demonstrating workplace standards, core values, ethics, and professionalism.

7. Choose an end-point assessment (EPA)

An end-point assessment (EPA) is the final stage of an apprenticeship, designed to check whether the apprentice has gained the knowledge and skills required by their apprenticeship standard.

This is carried out at the end of the apprenticeship, once the apprentice has completed their on-the-job training and off-the-job learning.

EPAs are conducted by independent bodies called end-point assessment organisations (EPAOs). Your apprenticeship provider should provide an EPAO as early into the apprenticeship as possible, unless you choose to do so. This will ensure that the apprentice understands the assessment criteria and how they will be assessed.

How much do you have to pay an apprentice?

As mentioned above, you are required to pay at least the National Minimum Wage for an apprentice.

An apprentice must be paid £7.55 per hour for the first year. After this year is complete, you must pay:

• £12.21 per hour under the National Living Wage for apprentices aged 21+
• £10 per hour under the National Minimum Wage for apprentices aged 18-20

If you fail to pay the apprentice correctly, you risk facing fines, legal action, and significant harm to your business’s reputation. This includes:

• Back payments of arrears (repaying all the money you underpaid)
• Fines between £100-£20,000 per worker who wasn’t paid correctly
• Legal consequences, such as an employment tribunal or even criminal proceedings
• Being named publicly by the Department for Business and Trade

5 tips for training an apprentice

The right approach to training an apprentice not only helps them pick up essential skills, but also helps them to stay motivated and get the most out of their apprenticeship.

Here are some tips to make the process easier and more effective for both you and your apprentice.

1. Develop a clear training plan

This should clearly outline the structure of the apprenticeship, including the learning objectives, schedule, expected outcomes, and commitments from all parties (the employer, apprentice, and training provider). A good training plan should cover:

• Training schedule: outlines the timing and format of both on-the-job and off-the-job training, including key milestones and assessment dates.
• Learner commitments: details the apprentice’s responsibilities, such as attending training sessions, completing assignments, and practising skills on the job.
• Employer and training provider commitments: specifies what the employer will provide (e.g. supervision, monitoring, workplace resources, etc.).
• Information on previous learning: includes any relevant qualifications or work experience the apprentice has, so training can be tailored appropriately.
• Complaint and query procedures: provides a clear process for raising concerns, questions, or complaints, including who to contact and expected response times.

2. Conduct regular reviews

Make sure to schedule frequent check-ins between the apprentice, their mentor, and the training provider to discuss progress, achievements, and any challenges.

You should use these reviews to adjust the training plan, set new goals, provide feedback, and ensure the apprentice is on track to meet their learning objectives and end-point assessment requirements.

3. Celebrate successes

Part of a positive organisational culture is celebrating wins and showing appreciation for someone’s work, even if it’s small.

Just like with regular employees, recognising an apprentice’s effort and achievements helps to boost morale and encourages continued growth. Even just simple gestures like verbal praise, team shout-outs, or small rewards can make a difference in how apprentices feel.

4. Provide structured training

Start by breaking down tasks into manageable steps and gradually increasing the apprentice’s responsibilities as they develop more confidence and competence (rather than just pushing them into the deep end).

This will help them pick up skills step by step and get ready for their end-point assessment without feeling overwhelmed.

5. Encourage professional development

Help your apprentice grow beyond their regular, day-to-day tasks. Suggest workshops, online courses, or events that relate to their role, and encourage them to take opportunities to earn extra qualifications if they can.

Supporting an apprentice’s wider development shows you care about their future, keeps them motivated, and helps them become a strong contributor to your team.

Should your business hire an apprentice?

Like with any recruitment decision, hiring an apprentice comes with both advantages and challenges.

Here’s a quick look at the main pros and cons to help you decide if an apprenticeship is right for your business.

✅ The pros of hiring an apprentice

• Cost-effective: apprentices often have lower starting wages, and government funding can help cut down training costs.
• Grow your own talent: you can train someone to fit your company’s culture, processes, and standards from the ground up.
• Develops important skills: you can focus on training in areas that are most valuable for your business, filling any skills gaps you may have.
• New ideas and energy: apprentices often bring new perspectives, creativity, and enthusiasm to the team.
• Improved productivity: as apprentices can handle lower-value tasks, this frees up experienced workers for more high-value work.

❌ The cons of hiring an apprentice

• Time and effort: mentoring, supervision, and training can be time-consuming, especially at the start of the apprenticeship.
• Less experience: apprentices are often new to the workforce, so they’re more likely to make mistakes or require more guidance.
• Long commitment: depending on their level, apprenticeships can last up to five years, meaning you’re committing to a long-term training plan.
• Administrative requirements: an apprenticeship involves paperwork, legal requirements, and coordination with training providers and assessments.
• Risk of leaving: there’s a risk that the apprentice may leave for another company after their training is complete, which is frustrating if you planned to hire them full-time.

What happens next?

After an apprenticeship ends, including the end-point assessment, an apprentice can either receive a full-time job offer from the employer, find new employment, or continue with further education.

Whatever the outcome, training an apprentice helps someone to build practical experience and bring new talent onto your team, especially if you plan to hire an apprentice full-time later on.

That being said, it’s important to remember that hiring an apprentice is a huge commitment that requires time, patience, and the right support. You’ll also need to invest in their training, provide guidance, and create an environment where they can learn and grow.

But if done well, the rewards – for both the apprentice and your business – can make all the effort worthwhile, helping your business grow while giving someone a real start in their career.