Answer this question before viewing the funding guidance so we can show you the most relevant information.

As an employer, is your pay bill more than £3 million per year?
If you’re receiving a transfer of apprenticeship funds from another employer, please choose ‘Yes’.

Your pay bill

The key facts

As an employer with a pay bill of less than £3 million per year, you'll get funding from the government to pay towards training and assessing apprentices. The amount of funding you get depends on the number of employees you have and the apprentice you're hiring.

You'll need to pay the apprentice's salary, which will be at least the hourly minimum wage rate (Opens in a new window) for their circumstances.

Head to the help centre (Opens in a new window) for more advice and support, including contact details if you want to get in touch.

Apprenticeship funding from the government

Employers with fewer than 50 employees

If you're an employer with fewer than 50 employees, the government will fund all the apprenticeship training costs up to the funding band maximum (Opens in a new window) if, on the first day of the apprenticeship, the apprentice is:

  • between 16 and 18 years old (or 15 years old if the apprentice's 16th birthday is between the last Friday of June and 31 August)
  • between 19 and 24 years old and has an Education, Health and Care (EHC) plan provided by their local authority or has been in the care of their local authority

Sharing apprenticeship costs with the government

If you have at least 50 employees or your apprentice does not meet the criteria above, you'll share apprenticeship costs with the government. This means:

  • you'll pay 5% towards the cost of training and assessing your apprentice
  • the government will pay the remaining 95%, up to the funding band maximum (Opens in a new window)
  • if your apprentice's training and assessment cost more than this, you'll pay the difference

Training young apprentices

All employers will receive £1,000 if, at the start of the apprenticeship, the apprentice is:

  • between 16 and 18 years old (or 15 years old if the apprentice's 16th birthday is between the last Friday of June and 31 August)
  • between 19 and 24 years old and has either an Education, Health and Care (EHC) plan provided by their local authority or has been in the care of their local authority

This will be paid to you in two equal instalments, 3 months and 12 months into the apprenticeship, through your training provider.

Example training and assessment costs

These examples show the breakdown of costs for funding an apprentice's training and assessment. They do not include other costs, such as salary, which are detailed below.

Example costs 1:

Financial services administrator Level 3 - (levels explained - Opens in a new window)
Number of apprentices 1
Funding band maximum £12,000
Agreed price with training provider £12,000
The government will pay £11,400
Cost to you £600

Example costs 2:

Rail Infrastructure Operator Level 2 - (levels explained - Opens in a new window)
Number of apprentices 1
Funding band maximum £12,000
Agreed price with training provider £10,000
The government will pay £9,500
Cost to you £500

Apprenticeship costs paid by you

Your apprentice's salary

You must pay your apprentice a salary for their normal working hours and the training they undertake as part of the apprenticeship.

If they're aged 16 to 18 or in the first year of their apprenticeship, you must pay them at least the hourly minimum wage for an apprentice. If they're aged 19 or over and have completed the first year of their apprenticeship, they're entitled to the National Minimum Wage for their age. Take a look at the current National Minimum Wage rates (Opens in a new window).

Other costs and responsibilities

Along with any training and assessment costs you need to pay, you'll be responsible for supervising your apprentice. Depending on your circumstances, you could assign a member of staff to be your apprentice's mentor and arrange weekly catch-ups to check their progress.

Your apprentice will spend at least 20% of their normal working hours completing off-the-job training with a training provider, learning the knowledge, skills and behaviours set out in the standard. You'll be responsible for providing any on-the-job training your apprentice needs to perform the work you've hired them for. For more details, read our guidance on training your apprentice.

Paying for apprenticeships using a transfer of apprenticeship funds

Employers who pay the apprenticeship levy can transfer unused apprenticeship funds to another employer.

Transferred funds (Opens in a new window) can be used to pay for new apprenticeship training and assessment for apprenticeship standards. They can't be used for apprenticeship frameworks, which are being phased out.

Training young apprentices

All employers will receive £1,000 if, at the start of the apprenticeship, the apprentice is:

  • between 16 and 18 years old (or 15 years old if the apprentice's 16th birthday is between the last Friday of June and 31 August)
  • between 19 and 24 years old and has either an Education, Health and Care (EHC) plan provided by their local authority or has been in the care of their local authority

This will be paid to you in two equal instalments, 3 months and 12 months into the apprenticeship, through your training provider.

Apprenticeships in Scotland, Northern Ireland and Wales

This page details the costs and funding rules for apprenticeships in England. You can find information about apprenticeships in Scotland (Opens in a new window), Northern Ireland (Opens in a new window) or Wales (Opens in a new window) on the relevant apprenticeships website.

If you answer the following question before you explore this page, we'll be able to tailor the information to your organisation.

Embrace change and employ an apprentice

Search for the ideal apprenticeship training that fits with your business needs and start the journey of taking on an apprentice.