Are Hospitality Apprenticeships Fully Funded?

Q: Are Hospitality Apprenticeships fully funded?

Hospitality Apprenticeships can be fully funded depending on the apprentice's age and the employer's levy status. For new starts from 1 August 2026, non-levy employers receive 100% government funding up to the funding band maximum for apprentices aged 16 to 24.

Q: Is there additional funding for younger apprentices?

Employers may receive an additional £1,000 for certain eligible apprentices, including those aged 16 to 18 and some 19 to 24-year-olds with an Education, Health and Care plan or care experience. From October 2026, eligible non-levy employers may also receive a hiring payment of up to £2,000 for recruiting a new apprentice aged 16 to 24.

Aug 25

10 min read

Are Hospitality Apprenticeships Fully Funded? For many employers in England, the answer can be yes, but it depends on the apprentice's age, whether the employer pays the apprenticeship levy and whether sufficient levy funds are available.

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For new apprenticeships starting between 1 August 2026 and 31 July 2027, the funding rules are particularly attractive for employees aged 16 to 24. Non-levy employers can receive 100% government funding for eligible apprenticeship training and assessment costs up to the funding band maximum for this age group.

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For employees aged 25 and over, funding is still available, although an employer contribution may be required.

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For hospitality businesses, this means apprenticeships can provide a cost-effective way to develop existing employees and future leaders without necessarily funding the full training cost themselves.

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Momentous Learning delivers both the Level 3 Hospitality Supervisor Apprenticeship and Level 4 Hospitality Manager Apprenticeship, providing structured development for hospitality employees progressing into greater supervisory and management responsibility.

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This guide explains when a Hospitality Apprenticeship can be fully funded, what employers may need to contribute and the key funding questions to consider before enrolling an employee.

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Table of Content:

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Are Hospitality Apprenticeships Fully Funded in 2026/27?

Hospitality Apprenticeships can be fully funded in some circumstances, but not every apprentice or employer automatically receives 100% funding.

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For apprenticeship starts from 1 August 2026, the main funding arrangements in England are:

Non-levy employer, apprentice aged 16 to 24: Government funds 100% of eligible training and assessment costs up to the funding band maximum.
Non-levy employer, apprentice aged 25 or over: Government funds 95% and the employer contributes 5%.
Levy-paying employer with sufficient funds: Eligible training and assessment costs are paid from the employer's apprenticeship service account, up to the funding band maximum.
Levy-paying employer with insufficient funds, apprentice aged 16 to 24: Government funds 100% up to the funding band maximum.
Levy-paying employer with insufficient funds, apprentice aged 25 or over: Government funds 75% and the employer contributes 25%.

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These arrangements apply to new apprenticeship starts in the 2026/27 funding year, so employers with apprentices who started earlier may be subject to different rules.

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There is another important limitation:

100% funding does not mean unlimited funding.

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Government or levy funding applies up to the apprenticeship's relevant funding band maximum. If an employer agrees a training price above that maximum, the employer is responsible for the additional amount.

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For hospitality employers considering workforce development, it is therefore important to establish the apprentice's age, employer levy status and applicable funding before making assumptions about cost.

Woman in patterned dress serves food in a modern kitchen, with stainless steel appliances and a smiling, welcoming expression.

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When Are Hospitality Apprenticeships 100% Government Funded?

The most significant funding change for 2026/27 relates to apprentices aged 16 to 24.

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For new starts from 1 August 2026, where an employer does not pay the apprenticeship levy, the government funds the full eligible training and assessment cost up to the funding band maximum for apprentices aged 16 to 24.

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This could be particularly relevant for hospitality businesses looking to develop younger employees who are ready to take on greater responsibility.

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For example, a restaurant, hotel or hospitality group may already employ a high-performing team member who demonstrates:

Strong customer service
Reliability
Good communication
Initiative
Potential to lead others
An interest in career progression

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Where the employee and apprenticeship are eligible, a Level 3 Hospitality Supervisor Apprenticeship could provide structured development towards greater supervisory capability while the employee continues working.

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The funding opportunity is therefore not simply about reducing training costs.

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It can help employers connect apprenticeship funding with internal progression, staff development and future leadership capability.

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What Do Non-Levy Hospitality Employers Pay?

Many independent restaurants, hotels, pubs, cafés and hospitality businesses do not pay the apprenticeship levy.

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For these employers, the apprentice's age has a significant impact on the training contribution required for new starts from August 2026.

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Apprentice aged 16 to 24

Government funds 100% of eligible apprenticeship training and assessment costs up to the funding band maximum.

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Apprentice aged 25 or over

Government funds 95% of eligible training and assessment costs, while the employer contributes the remaining 5% up to the funding band maximum.

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This means an apprenticeship does not suddenly become unaffordable because an employee is aged 25 or over.

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The employer contribution remains a relatively small proportion of the eligible training and assessment cost for non-levy employers.

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For employers already considering external courses, management training or recruitment, it can therefore be useful to compare the actual apprenticeship contribution with the wider value of structured workplace development.

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How Do Levy-Paying Hospitality Employers Fund Apprenticeships?

Larger hospitality employers may pay the apprenticeship levy.

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These organisations receive apprenticeship funds through their apprenticeship service account, which can be used towards eligible apprenticeship training and assessment.

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For example, levy funds could potentially support employees undertaking:

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For levy-paying hospitality employers, the question is therefore often less about whether training can be funded and more about:

Are we using our available apprenticeship funds strategically?

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This matters even more under the 2026/27 arrangements. The automatic 10% top-up to levy accounts has been removed and levy funds now expire after 12 months rather than 24 months.

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Employers with significant supervisory and management development needs should therefore consider whether available apprenticeship funds are being used to build the capabilities the organisation actually needs.

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What Happens If a Levy Employer Runs Out of Funds?

The 2026/27 funding rules introduced different arrangements where a levy-paying employer does not have enough money remaining in its apprenticeship service account.

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For new starts from 1 August 2026:

Apprentice aged 16 to 24: Government funds 100% of eligible training and assessment costs up to the funding band maximum.
Apprentice aged 25 or over: Government funds 75% and the employer contributes 25%.

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This is a significant distinction from the funding arrangement for non-levy employers aged 25 and over, where the employer contribution is normally 5%.

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For larger hospitality organisations planning apprenticeship cohorts, understanding anticipated levy balances can therefore be an important part of budgeting.

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It can also influence decisions around which employees to enrol and when programmes should begin.

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Can Existing Hospitality Employees Receive Apprenticeship Funding?

Yes. Apprenticeships are not only for new recruits.

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Eligible existing employees can also undertake a Hospitality Apprenticeship where apprenticeship requirements are met and the programme provides appropriate new learning.

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This is particularly relevant to hospitality because many potential supervisors and managers are already working within the organisation.

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An existing employee may already understand:

Your customers
Your operating standards
Your systems
Your products or services
Your organisational culture
Your team

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What they may need is structured development in areas such as:

Leadership
Team motivation
Communication
Operational management
People development
Customer experience
Decision-making
Business performance

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For example, an experienced hospitality employee moving towards supervisory responsibility may be suitable for the Level 3 Hospitality Supervisor Apprenticeship.

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An existing supervisor or manager taking greater responsibility for people, performance and business outcomes may be more appropriately aligned with the Level 4 Hospitality Manager Apprenticeship.

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For employers, this means apprenticeship funding can become part of a wider upskilling and internal progression strategy, rather than being limited to entry-level recruitment.

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What Does Fully Funded Actually Cover?

This is where employers need to be careful with the phrase fully funded.

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When government guidance states that an apprenticeship is 100% funded, it refers to eligible training and assessment costs up to the funding band maximum.

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It does not mean the government pays every cost associated with employing and developing that person.

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Employers remain responsible for costs such as:

The employee's wages
Normal employment costs
Any training price agreed above the funding band maximum
Appropriate workplace support and supervision
Any other business costs not covered by apprenticeship funding

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Apprentices must also be paid for their normal working hours and for training undertaken as part of their apprenticeship.

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This distinction is important.

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A fully funded Hospitality Apprenticeship means the eligible apprenticeship training and assessment can be covered up to the funding band maximum under the applicable funding rules.

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It does not mean employing the apprentice has no cost to the employer.

Smiling waiter serves orange juice and toast to a couple at an outdoor café with a bright yellow door.

Is There Additional Financial Support for Hospitality Employers?

Some employers may be eligible for additional payments depending on the apprentice.

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Current government guidance provides a £1,000 employer payment where, at the start of their apprenticeship training, the apprentice is:

Aged 16 to 18
Aged 19 to 24 and has an Education, Health and Care plan
Aged 19 to 24 and has been in local authority care

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The funding can be used towards employment-related costs such as equipment, travel or uniform.

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There is also a new measure from 1 October 2026 under which eligible employers that do not pay the apprenticeship levy may receive a hiring payment of up to £2,000 when recruiting a new apprentice aged 16 to 24, subject to the applicable eligibility requirements.

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These payments are separate from the funding available for apprenticeship training and assessment.

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Employers should therefore consider the complete funding position rather than focusing on one individual payment or contribution.

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Does Full Funding Mean an Apprenticeship Is Automatically the Right Choice?

No.

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Funding can make apprenticeship development financially attractive, but the employee still needs to be suitable for the programme.

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The strongest apprenticeship decisions begin with the business need.

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For example:

Do you need more confident supervisors?

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Are managers spending too much time managing routine team issues?

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Do employees need stronger leadership skills?

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Are you struggling to build an internal management pipeline?

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Could existing employees take greater responsibility with the right development?

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Are retention and career progression challenges affecting your workforce?

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If the development need is genuine and the apprenticeship aligns with the employee's role, funding can make a strong programme even more commercially attractive.

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If the programme does not match the employee's responsibilities or offers little meaningful new learning, the fact that it may be fully funded does not make it the right development solution.

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This is why employers should start with suitability and business impact, then establish the applicable funding.

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How Employers Can Use Hospitality Apprenticeship Funding Strategically

The most effective employers do not necessarily ask:

"Who can we put on an apprenticeship?"

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A better question is:

"What capabilities does our business need, and could an apprenticeship help us develop them?"

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Hospitality employers could begin by identifying:

Employees showing supervisory potential
Existing supervisors who need stronger leadership capability
Managers ready for broader responsibility
Teams with skills gaps
Roles that are difficult to recruit externally
Future succession risks
Employees whose progression may support retention

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The next step is matching the employee with the right programme.

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Level 3 Hospitality Supervisor Apprenticeship

Momentous Learning's Level 3 Hospitality Supervisor Apprenticeship supports employees developing supervisory and first-line leadership capability.

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It can be appropriate for employees taking greater responsibility for teams, service standards and everyday hospitality operations.

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Level 4 Hospitality Manager Apprenticeship

The Level 4 Hospitality Manager Apprenticeship is designed for employees taking broader responsibility for people, performance and business outcomes.

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Together, these programmes can help employers create a development pathway such as:

Team Member → Supervisor → Manager → Future Leadership

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Funding then becomes the mechanism that helps support the development strategy rather than the reason for creating one.