Why choose an apprentice as an SME? 

If you’re a small or medium-sized business, taking on an apprentice could be one of the smartest ways to grow your team and upskill your workforce, without putting pressure on your training budget. Thanks to levy transfers and new national support, apprenticeships are now more accessible and affordable than ever before. 

Here’s what you need to know. 

Access fully funded apprenticeships 

Large employers can transfer up to 50% of their unused apprenticeship levy funds to support smaller businesses like yours. This means: 

• You could receive funding to cover 100% of training and assessment costs
• You don’t have to pay the usual 5% co-investment fee
• You may not need to pay employer national insurance contributions (for apprentices under 25 earning below the higher tax rate threshold – £827 per week in the 2025–26 tax year) 

You’ll still pay wages and other employment costs, but saving on training fees and NICs can significantly reduce your overall spend, especially if you’re hiring more than one apprentice. 

Enjoy a simpler, more flexible process 

The apprenticeship system has been streamlined, especially for SMEs: 

• Levy transfers are now automatically approved in many cases
• You just need an Apprenticeship Service account to get started
• Support is available to help you set up and navigate the process
• Upskill and grow without stretching your budget 

Remember, Apprenticeships aren’t just for new hires. You can use them to train new recruits or upskill your current team, and all training is delivered by approved providers. It’s high-quality learning without the cost, and tailored support is available to help you choose the right path. 

Build valuable partnerships 

Receiving a levy transfer can help you connect with larger businesses in your supply chain or sector. These partnerships can boost your profile and open the door to shared growth opportunities. Apprenticeships also align with key West Midlands skills priorities, such as: 

• Advanced manufacturing
• Digital and creative technologies
• Clean energy and green tech
• Health tech and medical innovation 

Support regional growth and skills 

Apprenticeships play a key role in tackling local skills shortages. In the West Midlands, there’s priority support available for leadership and management roles and digital apprenticeships; two areas that support sustainable business growth. 

With the Apprenticeship Levy evolving into the new Growth and Skills Levy, SMEs will soon have access to a broader range of flexible training options, including Skills Bootcamps and modular courses. 

Next steps 

Ready to grow your team, build your future workforce and access fully funded training? Get in touch with Business Growth West Midlands to find out how we can support your next apprenticeship. 

Browse more articles and resources for employers.