Maximising Apprenticeships: A Guide For SMEs

Making Apprenticeships Work for Your Business 

Apprenticeships are one of the most powerful yet underused tools available to SMEs.  

They help close skill gaps, create future leaders, support succession planning and introduce fresh perspectives into teams. Yet many smaller employers still worry that apprenticeships are “too much work”, “too time-consuming” or only suited to school leavers. 

The reality can be very different. 

In 2026, apprenticeships are more flexible, better funded and more accessible than ever before and the employers benefiting most aren’t the large corporates. It’s the small and medium-sized businesses who have the agility to nurture talent from the ground up.

In this blog, I want to break down what SMEs need to know, share examples from the types of businesses we work with, and offer practical advice on how to make apprenticeships a success. 

Apprenticeships today look very different to 10 years ago

The old stereotype of a 16-year-old sweeping factory floors while “learning on the job” is long gone. Today, apprenticeships cover more than 600 standards across every sector imaginable and are open to anyone aged 16 and above.

They can also be for: 

• Mid-career career changers reskilling 

• Returners re-entering the workforce through structured training 

• Current Employees who you want to upskill 

• Further Education students wanting to enter the workplace to obtain a Degree instead of going to University full-time 

• Older employees using apprenticeships to upskill into new areas 

SMEs are often surprised to learn that the most engaged apprentices are not always the youngest. Many are people who finally feel they have a clear development path. 

Why apprenticeships work particularly well for SMEs 

Large companies often struggle to give apprentices genuine responsibility, but SMEs bring them into the heart of the team from day one. This creates a deeper sense of belonging and faster skill development. 

Here’s why apprenticeships are especially powerful in smaller workplaces: 

• The structure supports people who need direction 

• Mentoring happens naturally 

• Apprentices feel their work has visible impact 

• Managers can shape training to the business’s real needs 

• Loyalty tends to be higher when people grow with the company 
  
  

The financial side: why apprenticeships make sense in 2026 

Key changes and benefits for SMEs starting in 2026: 

• 100% Funding for Training Costs: The government will cover 100% of the eligible training and assessment costs for apprentices aged 16-24 (previously up to age 21). 

• National Insurance (NI) Savings: Employers do not pay Class 1 employer National Insurance contributions on an apprentice's earnings up to the Apprentice Upper Secondary Threshold (around £50,270 a year) for apprentices under the age of 25. 

• Increased Apprentice Minimum Wage: The apprentice minimum wage is set to rise to £8.00 per hour from April 2026, which is an increase in direct wage costs for employers. 

• Youth Guarantee Programme: This wider government initiative, backed by additional funding, aims to boost youth employment by guaranteeing six-month paid work placements for eligible 18-21 year olds who have been on Universal Credit for 18 months. 

• Growth and Skills Levy (GSL): The Apprenticeship Levy will be replaced by the Growth and Skills Levy from April 2026. This reform introduces "apprenticeship units," allowing employers to use funds for shorter, more flexible training courses in critical skills areas like digital and AI, offering more agile skills development. 

Choosing the right type of apprentice for your business 

Apprenticeships are especially useful for: 

• Operations admin 

• Finance support 

• HR and recruitment support 

• Marketing and social media 

• Customer service 

• IT support 

• Warehouse and logistics 

• Lab and technical roles 

• Production and engineering pathways 

Think of the roles in your business where: 

• Training someone from scratch is actually beneficial 

• You have a strong internal mentor 

• Progression into higher responsibility is possible 

• Skill shortages make traditional recruitment difficult 

Practical Tips for SMEs Taking on Apprentices in 2026 

1. Create a simple, structured 12-month development plan 

It doesn’t have to be complicated, just outline what they should learn each quarter. 

2. Give clear responsibilities from day one 

Apprentices want to contribute. "Shadowing only" quickly becomes demotivating. 

3. Appoint a friendly mentor, not necessarily a manager 

Someone patient, supportive and invested. 

4. Make learning time non-negotiable 

If you allow it to slip, the apprentice will struggle and so will you. 

5. Celebrate progress regularly 

Recognition encourages commitment and boosts confidence. 

Final thought 

Apprenticeships are not a shortcut, but when done well, they become one of the most valuable and cost-effective ways SMEs build highly capable, loyal talent.  

If you’re planning your workforce for 2026 and beyond, apprentices should absolutely be part of the conversation.