Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps are being taken to encourage more smaller businesses to take on apprentices.

Apprenticeships are a devolved matter, and the response outlines the information for England only.

To encourage smaller businesses to take on apprentices, the government will fully fund apprenticeship training for non-levy paying employers (essentially small and medium sized enterprises) for all eligible people aged under 25 from the next academic year. This change will make it easier for those employers to engage with apprenticeships by cutting costs and reducing bureaucracy for both them and their training providers. At the moment, this only happens for apprentices aged 16 to 21 and apprentices aged 22-24 who have an Education, Health and Care Plan (EHCP) or have been, or are, in local authority care.

We also provide £1,000 to both employers and training providers when they take on apprentices aged under 19, or 19-to-24-year-old apprentices who have an EHCP or have been, or are, in care.

Additionally, the department engages with small employers regularly to promote apprenticeships. During National Apprenticeship Week 2025, we held a round table with small and medium employers and other key partners to better understand the challenges they are facing in recruiting apprentices. This insight allows us to better target engagement activities with small businesses.

The government also facilitates and funds the Apprenticeship Ambassador Network (AAN) which comprises 2,500 employers and apprentices who volunteer to promote the benefits of apprenticeships. It operates across all parts of England through nine regional networks. These networks provide buddying and mentoring support to small businesses to help them recruit and retain apprentices.