Budget changes affecting independent practitioners taking on apprentices
The recent Budget changes make apprenticeships more financially attractive for podiatry independent practitioners, particularly if taking on younger staff
Previously, SMEs had to pay 5% of training costs (co-investment) for apprentices, while the government covered 95%. From 2025 onward, SMEs will pay nothing towards training apprentices aged up to 24. The government will cover 100% of the training cost within the relevant funding band. This is backed by £725 million over the Parliament and linked to the new Youth Guarantee, which ensures opportunities for 18–21-year-olds in apprenticeships, college, or job support.
Impact on independent practitioners hiring podiatry apprentices
Training costs for podiatry apprenticeships can be significant because they involve teaching clinical skills and regulated standards. Removing the 5% co-investment means SMEs only pay wages and release time for training, making apprenticeships more affordable.
Podiatry is classified as a shortage occupation in many regions. SMEs such as independent podiatry practices often hesitate to hire apprentices due to cost constraints. Full funding removes this hurdle, hopefully increasing uptake. Employers already benefit from NI exemptions for apprentices under 25 earning below £50,270 per annum. Combined with free training, this creates a stronger financial incentive.
The change may fully apply from the new financial year (April 2026), though some relief starts immediately. SMEs still bear salary costs, which will rise with the National Living Wage increase in April 2026. SMEs must ensure they can provide the appropriate clinical supervision required for podiatry apprenticeships.
The recent policy changes apply only to SMEs that are classified as non-levy payers, i.e., they have a payroll of below £3 million. The changes will provide independent practitioners who take on an apprentice a cost saving, over two years, of £6,070 per apprentice.
Roles that are likely to qualify include podiatry support workers, assistant practitioners, and certain back-office positions where apprenticeship standards exist. In addition, this funding improvement could open pathways into degree apprenticeships.
However, there are important limitations and risks to consider. The policy does not extend to apprentices aged 25 and over, meaning that mature entrants or existing staff seeking upskilling may still face co-investment requirements or other funding restrictions, depending on final rules and any caps on higher-level apprenticeships. Furthermore, the success of these changes depends on the availability of podiatry-specific apprenticeship standards and local training providers, which may vary by region. Administrative requirements associated with using the Apprenticeship Service also remain a practical barrier for many small businesses. While the financial improvements are substantial, they do not automatically translate into increased capacity without additional local system support.