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Budget 2026: What Employers Need to Know

The Government announced the 2026 Budget on 28 October 2026 and it included a range of measures affecting employers, apprenticeships, workforce planning and payroll compliance. 

Some apprenticeship incentives were announced before the Budget; however, the latest statement provides greater clarity on the Government’s priorities for skills, employment and business growth

Apprentice working in a warehouse and logistics setting, preparing orders at a packing station with stock shelving visible in the background.
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Apprenticeships: The Biggest Opportunity for Employers

Apprenticeships are one of the most cost-effective ways to fill skills gaps and build future talent pipelines.

 

Eligible non-levy paying employers can now receive up to £2,000 when recruiting a new apprentice ages 16-24 provided certain eligibility criteria are met and the apprentice begins their programme from 1 October 2026.

 

The Government will also fully fund training and assessment costs for eligible apprentices under the age of 25 up to the funding band maximum.

 

Employers should evaluate what role they need to recruit for and explore whether an apprenticeship programme can support the role requirement.

 

As part of the Seetec group, we help businesses:

 

  • Understand their funding eligibility
  • Identify the most suitable apprenticeship programme
  • Navigate the recruitment process
  • Develop talent pipelines aligned to business growth
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Budget 2026: New Funding to Boost Apprenticeship Access

The budget also includes £100 million to expand apprenticeship brokerage services across 14 mayoral areas between 2027 and 2029.

 

This new funding is designed to improve local support and guidance for employers and learners helping create new opportunities for apprenticeship providers and employer partnerships.

 

Government infrastructure projects create new opportunities

 

It was also announced that at least 3% of the workforce on large government construction and infrastructure projects will be apprentices.

 

This may help to create more opportunities across supply chains and supporting sectors, including logistics, warehousing, administration and business support functions.

Changes to apprenticeship standards

Employers should also be aware that funding has been withdrawn for new starters on several apprenticeship standards including:

 

  • Team Leader
  • Operations Manager
  • Coaching Professional

In some cases, commercial training and professional development programmes may provide an alternative route for skills development.

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What Does Budget 2026 Mean for Payroll and HR?

Employers should prepare for National Minimum Wage increases from April 2027:

 

  • £13.21 per hour for workers aged 21+
  • £11.27 per hour for workers aged 18-20
  • £8.31 per hour for 16-17-year-olds and eligible apprentices

These increases could have an impact on:

 

A payroll and HR review ahead of April 2027 can help employers understand the impact on their organisation and ensure compliance.

Cyber security investment

An increase of public investment in cyber security and AI security capabilities was also announced. Even though this doesn’t create direct funding for businesses to purchase cyber services, it highlights the importance of cyber resilience, risk management and digital security for all organisations. 

sexual harassment prevention at the workplace

Looking ahead

This budget shows the Government’s focus on developing skills,supporting apprenticeships and strengthening workforce capability.

 

Employers should review their recruitment plans, assess apprenticeship eligibility and make sure their business is prepared for the new changes.

 

Tribal’s HR, Payroll, Apprentice, Recruitment and IT experts are here to help, get in touch with our team to discuss how we can support your organisation.

Sources:

 

    • HM Treasury, Budget 2026 
    • Department for Work and Pensions, Apprenticeship Funding Guidance 2026/27 
    • Department for Work and Pensions, £2,000 Apprenticeship Hiring Payment Announcement
    • Growth and Skills Levy Reforms Factsheet
    • Low Pay Commission, Minimum Wage Rates for 2027

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