Apprenticeship funding explained

We can bring you up to speed with how apprenticeship funding works.

With over 25 years in the business, we can help you understand the complexities of apprenticeship funding
With over 25 years in the business, we can help you understand the complexities of apprenticeship funding
We’re an established and approved training provider on the register of apprenticeship training providers
We’re an established and approved training provider on the register of apprenticeship training providers
We also deliver business training funded by European Skills Fund (ESF) and the Adult Education Budget (AEB)
We also deliver business training funded by European Skills Fund (ESF) and the Adult Education Budget (AEB)

Levy Employers

You are a Levy paying employer if your annual wage bill is £3million or more. This means 0.5% of your annual wage needs to be paid into the apprenticeship Levy.

The Levy is mandatory and is collected from you each month and placed into an Apprenticeship Service account. You will use this account to manage your apprenticeship levy spending. Funds in your account can only be used for on apprenticeship training within your organisation.

You have 24 months to spend your Levy pot otherwise it automatically goes back to the Government.

25% of your levy funds can also be transferred or ‘gifted’, to support smaller, non-Levy organisations with funding apprenticeships. This is done through your Apprenticeship Service account. 

Levy information

Non-Levy employers

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.

The Education and Skills Funding Agency (ESFA) provide 95-100% funding for the cost of training apprentices to Non-Levy employers, depending on the size of your business:

If you have fewer than 50 employees you will be eligible for 100% funding for individuals aged 16-18.

For individuals aged 19+ you will receive 95% of funding, and you will be required to fund the remaining 5% towards the cost of training that apprentice.

If you have more than 50 employees you will be eligible for 95% funding for individuals aged 16+, and you will be required to contribute the remaining 5% towards the cost of that apprentice.

A £1,000 cash incentive is also available to all employers with any turnover size if a newly recruited apprentice is aged 16-18.

SME Support

Reserve your 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

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.

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

  • 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.
  • £4.15 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.
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Case Studies

We work with businesses of all shapes and sizes, helping them to make the most of apprenticeships and work-based learning.

Get in touch

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Resources

Here you’ll find some resources to help guide you as an employer.