26th June 2026 | Hudson Contract
Hudson has welcomed new government funding that will provide SMEs up to £2,000 for every 16–24-year-old apprentice they recruit.
Employers who do not pay the apprenticeship levy can claim the incentive for new recruits starting apprenticeships from October 1, provided they join from July onwards. The funding forms part of wider government efforts to reverse the decline in apprenticeship starts among younger people.
Fiona Gamwell, business support manager at Hudson, said: “The latest official statistics show that construction had 24,000 apprentice starts in the 2023-24 academic year, of which 75 per cent were employed with SMEs. The funding recognises the huge contribution SMEs make to the apprentice landscape.”
Fiona added the timing of the scheme is particularly useful for employers who typically recruit over the summer.
“Many companies take on apprentices over the summer holidays, and this funding allows the business to employ someone for 90 days prior to the start of the apprenticeship and still receive the £2,000. We haven't seen extra incentives like this since the pandemic, so it will be widely welcomed,” she said.
Fiona also highlighted that employers may be overlooking an additional benefit: there are no employer National Insurance contributions for apprentices under 25, which could help offset cost pressures following wider changes to NI thresholds.
The Hudson Foundation – supporting apprenticeships
The Hudson Foundation continues to support young people entering the construction industry, particularly in coastal communities, through its flagship apprenticeship sponsorship scheme.
Stuart Sanderson, director at Hudson, said “The scheme was conceived by our founder Dave Jackson, who passed away last summer. Dave began his own career as an apprentice and was committed to creating opportunities for young people in his Bridlington hometown.
“To date, our scheme has sponsored more than 300 apprenticeships. Last year, Dave added the £500 completion bonus, increased sponsorship to £3,000 per recruit and committed to fund 40 apprenticeships per year.
“Combined with the new government incentive, this means Hudson-sponsored firms could access up to £5,000 in support – £2,000 from the government and £3,000 from the Hudson Foundation – when they take on a new apprentice.”
The first to receive the £500 completion bonus was Dawson Snaith, a carpenter with Bridlington firm John Lee Construction Services, who completed his Level 2 apprenticeship in carpentry and joinery at East Riding College.
Image: Luke Portlock, Dawson Snaith, Stuart Sanderson and John Lee ©Bridlington Echo
Director John Lee said: “Hudson’s sponsorship programme makes a massive difference. It’s easier to take on apprentices, get them trained and grow the business. The completion bonus is an extra incentive and helps keeps them invested in finishing their course and getting their qualifications.
“Dawson is the second of three apprentices I’ve recruited. It's important to build people in your business and mould them the way you want them to be. Young people sometimes get a bad press but they just need an opportunity.
“Many thanks to Hudson and East Riding College. Their support has been seamless.”
Hudson works closely with East Riding College to promote apprenticeships to young people, families, schools and construction employers.
Luke Portlock, business development manager at the college, said: “The bonus scheme is a big benefit to us. Colleges nationwide are finding retention a challenge as quite often students start courses but don’t qualify. This gives them an incentive to get their qualification under their belt and continue in their line of work.
“We have lots of candidates for apprenticeships but businesses are struggling with rising employment costs. Without these carrots to dangle, they might not take on apprentices at all.”
Find out more about apprenticeship funding and how Hudson can help
