How much will it cost me?

You can get help from the government to pay for apprenticeship training and assessment. The amount you get depends on whether you pay the apprenticeship levy or not. You will pay the apprenticeship levy if you're an employer with a pay bill over £3 million each year.

Apprenticeship funding is a devolved matter and so how you get your funds and pay for training depends on whether you're in:

If you don't need to pay the apprenticeship levy

As an employer who doesn’t pay the apprenticeship levy, you will need to pay the training provider directly for training your apprentices.

You pay 10% towards the cost of training and assessing your apprentice. The government will pay the rest (90%) up to the funding band maximum. They’ll pay the funds directly to the training provider.

Additional payments from the government

Extra support for small employers

Employers with fewer than 50 people working for them will not have to pay the 10% contribution for an apprentice who is aged between:

  • 16-18 years old
  • 19-24 years old and who has previously been in care or who has an Education, Health and Care plan provided by their local authority

The government will pay 100% of the training costs for these individuals, up to the funding band maximum.

Training younger apprentices

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

  • 16-18 years old
  • 19-24 years old and who has previously been in care or who has an Education, Health and Care plan provided by their local authority

This payment will be made to the employer in two equal instalments via the training provider.

Example costs

Below are some examples of the breakdown of the costs for funding an apprentice. The cost of training and assessment are included, however, the apprentice's salary is not.

Example costs 1:

Financial services administrator Level 3 - (levels explained)
Number of apprentices 1
Funding band maximum £12,000
Agreed price with training provider £12,000
The government will pay £10,800
Cost to you £1,200

Example costs 2:

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

Paying for apprenticeships using a transfer of apprenticeship funds

Employers who already have an apprenticeship service account and haven't spent all their apprenticeship funds, can transfer unused funds to another employer.

Transferred funds can be used to pay for new apprenticeship training and assessment for apprenticeship standards. Transferred funds can't be used for apprenticeship frameworks.

Transferring funds to another employer

If you have unused apprenticeship funds, you can transfer them to another employer. You will have to use the apprenticeship service if you want to do this.

How to register and use the apprenticeship service as an employer.

Employers who pay the apprenticeship levy and have unused apprenticeship funds can find employers who want to receive a transfer in a number of ways, for example:

  • work with employers in your supply chain
  • get in touch with employers in your industry
  • get in touch with an Apprenticeship Training Agency (ATA)
  • work with regional partners

Paying the levy

If you pay the apprenticeship levy, you’ll receive funds through the apprenticeship service to spend on training and assessing your apprentices. The government will add 10% to these funds.

You need to sign in or create a new account on the apprenticeship service to fund your apprenticeships.

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