Apprenticeships Funding Explained

Employers can receive apprenticeship funding through the Apprenticeship Levy (for those with a pay bill over £3 million) or through government co-investment, where the government funds the majority of training costs. Levy-paying employers must register on the Apprenticeship Service account, and the government adds a 10% top-up to their funds. Non-levy payers receive 95% of funding for apprentices aged 22 and over, while training costs are 100% funded for apprentices aged 16-21.

For all employers, a £1,000 cash grant is available for taking on an apprentice aged 16-18, or 19-24 with an Education, Health and Care Plan.

This funding is used to cover the cost of Apprenticeship training through an approved College or training provider.

Funding for levy-paying employers

• Companies with a total annual pay bill of over £3 million pay the Apprenticeship Levy.
• These funds are held in an online account on the Apprenticeship Service.
• The government adds a 10% top-up to the funds in the account.
• This money is used to pay for training and assessment costs, up to the funding band maximum for the chosen apprenticeship.
• If you don't have enough funds in your account, you must pay 5% of the cost and the government will pay 95%.

Funding for non-levy payers

• For apprentices aged 16-21, the government funds 100% of the training costs.
• For apprentices aged 22 and over, the government funds 95% of the training costs, and the employer contributes the remaining 5%.
• If your business has fewer than 50 employees and the apprentice is aged 19-24 with an Education, Health and Care Plan, the government may fund 100% of the costs.

Additional incentives

• A £1,000 cash grant is paid to employers who take on an apprentice aged 16-18.
• This grant also applies to apprentices aged 19-24 who have an Education, Health and Care Plan or have been in local authority care.
• A care leaver bursary of £3,000 is available to apprentices aged 16-24 who have been in care.