Funding an Apprenticeship
Key Information
Using your apprenticeship levy
As an employer with a pay bill of more than £3 million, you’re required to pay the apprenticeship levy. You can manage funds using the apprenticeship service and spend it on training and assessing your apprentices.
The government will apply a 10% top-up to the funds you have in your account.
If you don’t have enough funds, you just pay 5% of the outstanding balance and the government will pay the rest. This is up to the funding band maximum allocated to each specific apprenticeship.
If you exceed the funding band maximum, you’ll need to pay all the additional costs.
If you don’t already have an account, find out how to set up an apprenticeship service account as an employer.
How much does it cost?
As an employer that doesn’t pay the apprenticeship levy, you pay just 5% towards the cost of training and assessing an apprentice.
The government will pay the rest up to the funding band maximum.
You’ll pay the training provider directly and agree on a payment schedule.
If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged:
- 16 to 18
- 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority
If you exceed the funding band maximum, you’ll need to pay all the additional costs.
You will need to create an apprenticeship service account to reserve apprenticeship funding. For further information, visit this help article or watch the video.
16-18 years old
£1000 employer incentive grant paid in two instalments of £500.
Fully funded apprenticeship course.
19+ years of age
Levy payers – course funded from Levy pot
Non-Levy Payers – 5% contribution to be paid towards course