Understanding apprenticeship benefits and funding
As an Employer you can hire an apprentice and invest in the future, by getting talent that’s right for you. if you are a smaller employer, you are eligible for government funding which will pay between 95% and 100% of the apprentice training costs. If you are a large employer, you can use your levy to pay for your apprenticeship training. Apprenticeships are suitable for people at any age and any level so you can hire someone new or upskill an existing employee, allowing you to grow talent and develop a motivated, skilled and qualified workforce.
Employers
Apprenticeships help you to:
- Offer on-the-job training in a safe working environment
- Build a culture of learning and development
- Enjoy higher staff retention and morale
- Promote diversity and inclusion in the workplace
Funding an apprenticeship - NON levy Employers
If you are an employer that doesn’t pay the apprenticeship levy, you may pay just 5% towards the cost of training and assessing an apprentice. The government will pay the rest up to the funding band maximum.
If you employ fewer than 50 employees, the government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged:
16 to 21
19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority. If you exceed the funding band maximum, you’ll need to pay all the additional costs.
You will need to create an apprenticeship service account to reserve apprenticeship funding. For further information visit our help article or watch our video. Paying your apprentice
You’re responsible for paying your apprentice for their normal working hours and any training they do as part of the apprenticeship.
You must pay them at least the National Minimum Wage rate depending on their age and the year of apprenticeship training they’re in. Employers may not need to pay Class 1 National Insurance contributions for an apprentice.
Funding an apprenticeship - levy Employers
As an employer with a pay bill of more than £3 million, you’re required to pay the apprenticeship levy. You can manage funds using the apprenticeship service and spend it on training and assessing your apprentices.
If you don’t have enough funds, you just pay 5% of the outstanding balance and the government will pay the rest. This is up to the funding band maximum allocated to each specific apprenticeship.
If you exceed the funding band maximum, you’ll need to pay all the additional costs.
If you don’t already have an account, find out how to set up an apprenticeship service account as an employer.
Paying your apprentice
You’re responsible for paying your apprentice for their normal working hours and any training they do as part of the apprenticeship.
You must pay them at least the National Minimum Wage rate depending on their age and the year of apprenticeship training they’re in. Employers may not need to pay Class 1 National Insurance contributions for an apprentice.