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Apprenticeship Funding Explained

Looking to hire an apprentice but unsure about the financial procedures? We can bring you up to speed with how apprenticeship funding works.

1.

With over 25 years in the business, we can help you understand the complexities of apprenticeship funding

2.

We’re an established and approved training provider on the register of apprenticeship training providers

3.

We also deliver business training funded by European Skills Fund (ESF) and the Adult Education Budget (AEB)

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What apprenticeship funding is available?

The government has designed the Apprenticeship Levy to make apprenticeship funding accessible to all employers in England regardless of size or revenue.

The apprenticeship levy is made up of funds paid in by businesses based on their annual wage bill paid directly to HMRC through PAYE – however, not all employers will need to pay into the levy.

You may also be eligible for grants and government incentive payments depending on your industry, business size and apprentice.

Apprenticeship funding for non-levy employers

If you are an employer with a wage bill of less than £3m, you are classed as a non-levy employer and can receive funding towards the cost of training apprentices.

Read on to find out more about how apprenticeship funding works for your size of organisation.

Access apprenticeship funding

Complete the form below and we’ll help you with everything you need to know about funding apprenticeships.

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Understanding the apprenticeship levy

Your business falls into one of two categories based on your wage bill.

Companies that spend more than £3 million on their wage bill are levy paying.

Levy Gifting

Icon of signed paper and monetary figures

Those with wage bills less than £3 million are called co-investors.

SME Support

Levy Paying
If your wage bill is over £3 million the following applies to your business.
Co-Investment
If your annual wage bill is less than £3million, you are a Non-Levy employer. This means you would fall into the co-investment funding model, whereby you can receive funding towards the cost of training apprentices.

0.5%

of your payroll goes to the HMRC towards the levy.
25%

of your levy funds can also be transferred or ‘gifted’, to support smaller, non-levy organisations.
£15k

allowance to offset against your levy.
24 Months

time limit to spend your levy before its returned to HMRC.
12 Months

minimum duration of apprenticeship training.
£4.30

minimum hourly wage for apprentices.
30 hours

minimum weekly working hours for apprentices.
£1000

grant per 16-18yr old apprentice.

5%

of co-investment is paid by you, the employer.
95%

of co-investment is paid by the Government.
Reserve Funding

all non-levy employers must reserve government-employer co-investment for apprenticeships via an Apprenticeship Service account.
>50

more than 50 employees? You will be eligible for 95% funding for apprentices aged 16+.
<50

Fewer than 50 employees? You will be eligible for 100% funding for apprentices aged 16-18. For apprentices aged 19+ you will receive 95% of funding.
£4.15

minimum hourly wage for apprentices.
30 hours

minimum weekly working hours for apprentices.
£1000

grant per 16-18yr old apprentice.

Reserve your apprenticeship funding

The Government is changing the way non-levy employers access apprenticeship funding. All employers must now register for an Apprenticeship Service account to manage all aspects of their apprenticeship funding.

Find out more