The Government has introduced a range of new financial incentives aimed at boosting apprenticeship uptake among SMEs, with industry body BIFIS welcoming the move while urging further action.
The British Institute of Fitted Interiors Specialists (BIFIS) has welcomed fresh Government support for small and medium-sized enterprises (SMEs) taking on young apprentices through the non-levy system, following the announcement of a new £2,000 hiring incentive.
The incentive, which comes into effect for apprentices starting from October 1 2026, is aimed at non-levy paying employers – typically smaller businesses – and forms part of a wider push to reverse declining apprenticeship numbers and create 50,000 additional placements.
Under the updated scheme, SMEs will have access to a range of financial support measures. These include a £1,000 payment for hiring younger apprentices, a £2,000 foundation apprenticeship incentive, and the new £2,000 SME hiring incentive. There is also a £3,000 Universal Credit incentive for employers recruiting apprentices aged 18–24 who have been out of work for more than six months.
Additional support includes no employer National Insurance contributions for under-25s, full training cost coverage for eligible apprentices, and a £3,000 bursary for care leavers entering apprenticeships.
The measures are designed to reduce the upfront costs associated with employing apprentices, particularly for SMEs, which are responsible for a significant share of apprenticeship opportunities across the fitted interiors and wider construction sectors.
BIFIS CEO Damian Walters said the changes were a positive step, but stressed that more needs to be done to fully support smaller employers.
“Any support that makes it easier for SMEs to recruit and train young apprentices is hugely positive, and we welcome the Government’s recognition of the vital role small businesses play in developing the UK’s workforce,” he said.
“However, apprenticeships remain a significant financial commitment for SMEs, especially in the first year. If the Government truly wants to unlock the full potential of the apprenticeship system, it must go further in helping small employers cover the real costs of training and supporting apprentices on site.”
Walters added that the organisation will continue lobbying for improvements to the system, particularly around access to unused levy funds.
“We’re working tirelessly with strategic partners, amplifying the voice of our industry, in lobbying the Government to improve financial support for small businesses. There are swollen pots of unassigned levy funds that could be put to great work with the installer supply chain and whilst I’m pleased that extra support has been provided, the government remains way behind in supporting small businesses to cover the full costs of taking on an apprentice.”
BIFIS said it will continue to push for longer-term reforms to ensure SMEs can invest in apprenticeships without disproportionate financial pressure, highlighting the importance of skills development for the future of the fitted interiors sector.