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Apprenticeship Funding and Incentives Explained

The amount your company contributes towards the cost of an apprenticeship now depends on the size of your business and the age of your apprentice.

All employers must reserve apprenticeship funding for training on their Digital Apprenticeship Service account. Our Business Development Team can advise on how to do this.

Levy Paying Employers

If your company has an annual pay bill of over £3 million:

  • Your company will pay a monthly Apprenticeship Levy (0.5% of your annual pay bill) to HMRC.
  • The Government will top-up this amount by an additional 10%.
  • Your levy funds will be stored in a digital account, which can be used to pay for apprenticeship training and must be used within 24 months.

Non-Levy (Co-Investment) Employers

If your company has a pay bill of less than £3 million:

  •  If you have less than 50 employees and your apprentice is aged 16-18, or 19-24 years old and have been in care or have an Education, Health and Care Plan, the government will fund 100% of the apprenticeship training costs.
  • If your apprentice is aged 19+ or you have more than 50 employees, you will contribute 5% towards the cost of the apprenticeship. The government will pay the remaining 95%.
  • Payment plans are available to companies paying the 5% contribution.

Incentive Payments

All employers will receive £1,000 for apprentices who are aged 16-18 or 19-24 years old and have been in care or have an Education, Health and Care Plan.

This payment will be made to the employer in two equal instalments of £500 via St Helens College, in the first year of the apprenticeship.