Employer Resources
Apprenticeship Funding Guide
Get help from the government to pay for apprenticeship training. Whether you pay the apprenticeship levy or not, there are funding options available—plus additional incentives for hiring young apprentices.
Watch: How Apprenticeship Funding Works
A quick guide to funding options for levy payers and SMEs.
How Apprenticeship Funding Works
The funding you receive depends on whether you pay the apprenticeship levy. Either way, the government contributes significantly to training costs.
Levy Payers
Annual pay bill over £3 million
Pay 0.5% of your pay bill into a Digital Apprenticeship Service account. The government adds 10% top-up to your funds.
Non-Levy Employers
Annual pay bill under £3 million
Pay just 5% of training costs. The government pays the remaining 95% directly to your training provider.
Levy Transfer
Receive funds from larger employers
SMEs can receive levy transfers from larger organisations, covering the 5% contribution entirely.
Funding for Non-Levy Employers
If your annual pay bill is under £3 million, you don't pay the apprenticeship levy. Instead, you pay just 5% towards training and assessment costs. The government pays the remaining 95% directly to your training provider.
You'll agree a payment schedule with your training provider and pay them directly. There's no complicated administration—we handle the government funding claims.
Training may be 100% funded if you hire an apprentice aged 16-21, or aged 22-24 with an EHC plan or care leaver status.
Example: Level 5 Apprenticeship
Actual costs vary by apprenticeship standard. May be £0 for eligible young apprentices.
When Is Training 100% Funded?
Your apprentice's training could be fully funded, up to the funding band maximum, if all of the following apply:
Additional Funding & Incentives
On top of training funding, you may receive cash payments to support your apprentice in the workplace.
Young Apprentices (16-18)
Receive £1,000 when you hire an apprentice aged 16-18, or 15 if their 16th birthday falls between last Friday of June and 31 August.
Paid in 2 instalments of £500 (at 90 days and 1 year)
Care Leavers & EHC Plan (19-24)
Receive £1,000 for apprentices aged 19-24 who have an Education, Health and Care plan or have been in local authority care.
Paid in 2 instalments of £500 (at 90 days and 1 year)
Foundation Apprenticeships
Support young people (16-21, or 22-24 with EHC/care leaver status) starting foundation apprenticeships in construction, engineering, health & social care, or digital.
Paid in 3 instalments: £667, £667, then £666
Payments are made by your training provider within 30 working days of receiving funds from the government. You can spend incentive payments on any costs related to employment—salary, travel, uniform, etc.
Foundation Apprenticeships
Foundation apprenticeships are new entry-level programmes designed to help young people get started in key sectors. They provide a stepping stone to more advanced apprenticeships.
Employers can receive up to £2,000 to support eligible apprentices, paid in three instalments over the programme.
Available in these sectors:
Eligibility for £2,000 Payment
Your apprentice must be doing a foundation apprenticeship and be:
Payment Schedule
£667 — 90 days after start
£667 — 242 days after start
£666 — 90 days after moving to next apprenticeship
What Apprenticeship Funding Cannot Cover
Growth and Skills Levy Changes
The government is introducing greater flexibility to help more people access apprenticeships and support employers' skills needs.
Foundation Apprenticeships
New from August 2025 to help young people get started and meet employers' skills needs.
Shorter Minimum Duration
From August 2025, minimum apprenticeship duration reduces from 12 months to 8 months, so training matches what industry needs.
Flexible English & Maths
Apprentices over 19 won't always need to achieve English and maths qualifications if employers agree they're not essential.
Short Courses
New short courses to help employers fill specific skills gaps more quickly.
Funding FAQs
Common questions about apprenticeship funding, incentives, and how to access financial support for training.
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Whether you're a levy payer or SME, we'll help you understand exactly what funding is available and guide you through the process.
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