From April 2026, the cost of hiring is going up again and many small and medium size enterprises (SMEs) are worried. 

The National Minimum Wage for over 21s is now £12.71 per hour. For a full-time employee, that’s nearly £25,000 a year before on-costs like National Insurance and pension.

Compare that to an apprentice:

• • From April 2026, the apprenticeship minimum wage is £8 per hour
  • No employer National Insurance for apprentices under 25
  • Training is funded through the apprenticeship system

The cost difference is real – and significant

At its simplest, the case for apprenticeships starts with wages.

There is now a substantial gap between the cost of hiring a standard entry-level employee and bringing in an apprentice. When you factor in Employer National Insurance Contributions, that gap becomes even more pronounced.

So naturally, more employers are looking at apprenticeships.

But, apprenticeships come with hidden costs

This is the bit most people don’t talk about. While the wage is lower, the admin and management burden is higher – and for many SMEs, that’s the real blocker.

Let’s break down the true cost of hiring an apprentice directly.

The real cost of hiring directly (on top of wages)

What sits behind those numbers?

Recruitment (£1,500)

Advertising, screening, interviews, and time spent coordinating it all.

Onboarding (~£1,000)

The CIPD identifies onboarding and induction as a core part of hiring costs. In practice, this includes:

• • Right to work checks and references
  • Setting up payroll and apprenticeship DAS accounts
  • Contracts and paperwork with the apprenticeship provider
  • Initial inductions and support

When you add up HR and manager time (typically 30–40 hours total), even at a modest £25/hour, this quickly reaches around £1,000 per hire.

Ongoing admin (~£3,000)

This is the big one:

• • Monthly paperwork and compliance
  • Supporting the apprentice pastorally
  • Liaising with training providers
  • Tracking progress and ensuring completion

Even just 10 hours a month of combined HR and line manager time adds up to £3,000 a year.

This is why SMEs are sceptical

Many small businesses like the idea of apprenticeships, but decide it’s too time-consuming and too risky. It’s not the wage that puts them off. It’s everything else.

However, there is another way…

• • Recruitment
  • HR and payroll
  • Compliance and paperwork
  • Ongoing support to keep them on track

• • A motivated apprentice
  • Day-to-day control of their work
  • Progress reviews with the training provider

But without the admin headache.

The same costs – reworked

That’s a saving of almost £3,000+ in year one.

A simple way to get started

Our employ-on-behalf service starts from £2,580 per year (for higher-level apprentices). So you can access all of this support at a cost that is often lower than doing it yourself.

It’s not just about cost – it’s about outcomes

We don’t just reduce cost. We improve results. Our retention rates are over 90%, compared to an industry average closer to 65%.
That means:

• • Less disruption
  • Less re-hiring
  • Better long-term value from your apprentice

And if you want reassurance, we’re always happy to put you in touch with employers we already work with.