Taking on an apprentice or offering work experience: what small business owners need to know

The main difference between work experience and apprenticeships

An apprenticeship is a real job, and your apprentice is an employee; you pay them wages, and they study towards a recognised qualification alongside their work, usually with a college or training provider. Work experience is a short placement, often a week or two, where someone observes and tries out a role to find out what it involves. It isn’t employment and it doesn’t lead to a qualification.

If you want long-term help in your business and you have the capacity to supervise someone properly, an apprenticeship is worth exploring. If you want to support your local community, spot potential future hires or lighten your load slightly without a long commitment, work experience may be the better starting point.

What an apprenticeship involves

1.      Pay

The legal minimum wage for apprentices rose to £8.00 an hour from April 2026 and applies to apprentices under 19, or those aged 19 or over in the first year of their apprenticeship. Once an apprentice is 19 or older and has finished that first year, they must receive the minimum wage for their age group, which is currently £10.85 an hour for ages 18 to 20 and £12.71 an hour for those aged 21 and over. Many employers pay more than the minimum to attract better applicants, so it is worth planning for the step-up in later years so it doesn’t catch you out.

2.     Training costs

For many small businesses, the training itself costs little or nothing. The government has said that from the 2026 to 2027 academic year, apprenticeships will be fully funded for employers who do not pay the apprenticeship levy (mainly small and medium-sized businesses) for people under 25, for those starting from 1 October 2026 who have joined their employer within the past three months. The levy only applies to larger employers, specifically those with an annual wage bill of £3 million or more, so most small businesses will not pay it.

3.     Other costs to plan for

“Free” refers to the training and assessment, not the full cost of employing someone. You will still pay your apprentice’s wages, any employer pension contributions and normal overheads such as equipment and supervision. There is some tax relief, as employer National Insurance is £0 for apprentices under 25 whose pay is below the relevant threshold.

4.     Time

This is often the cost that surprises people most. Apprentices spend a share of their paid hours, usually around a fifth, on training away from their day-to-day tasks, so you need to build that into your rota. They also need someone to show them the ropes, give feedback and sign off progress with the training provider. If you work alone, think honestly about whether you can offer that attention.

What work experience involves

1.      Pay and legal status

Work experience for school-age students is normally unpaid, as the student is there to learn rather than to do the work of an employee. Things become less clear if someone older is doing real tasks that benefit your business, because they may then count as a worker who is owed at least the minimum wage. The safest approach is to keep the placement focused on observing, shadowing and trying set projects, and to check the current rules on GOV.UK if you are unsure.

2.     Insurance and safety

Before anyone arrives, tell your insurer that you plan to host a placement and check that your employers’ liability cover includes work experience students. You also need to carry out a risk assessment that accounts for the person’s age and experience, particularly if they are under 18, as there are limits on the hours and tasks young people can take on. If you are hosting through a school, they will often send a form and guidance to help with this.

3.     Safeguarding

If your placement student is under 18, agree who will supervise them at all times, what they will be doing each day and who they can speak to if they have a concern. Many schools and colleges can provide a simple template.

Questions to ask yourself first

• Do I have someone, possibly me, who can supervise and coach this person for a fixed amount of time each week?
• Can I afford the wages and associated costs, including time away from tasks for training?
• Do I have enough varied, useful work to keep them engaged and learning?
• Is my insurance up to date and does it cover this arrangement?
• Am I looking for a long-term addition to my team or a short introduction to my industry?

How to get started

For an apprenticeship, start by searching for training providers that offer courses relevant to your sector, then ask about funding for your business size and age group, as the 2026 to 2027 rules are still being rolled out and details can change. You can also advertise your vacancy through the government’s apprenticeship service. Talk to a provider before you write the job advert, as they can often help you choose the right level and recruit suitable candidates.

For work experience, contact local schools, colleges and universities, or ask them about their placement schemes. Many are keen to hear from small businesses, and you can set the dates, number of students and activities to suit you.

In summary

Apprenticeships are a bigger commitment, with wages, training time, and supervision to consider, but training funding for under-25s can make them far more affordable than many small business owners expect. Work experience is a lower-risk way to help someone and see what it’s like to have another person in your business. Whichever you choose, plan the supervision, check your insurance and confirm the latest rules on GOV.UK before you begin.