Apprenticeships Funding Options

Save on Training Costs with Apprenticeship Funding

Government funding can cover some or in many cases all, of your apprenticeship training costs, making it a cost-effective way to recruit, develop and retain skilled employees while keeping budgets under control.

• Growth and Skills Levy

  The Growth and Skills Levy, managed by Skills England, provides employers with a flexible and cost-effective way to invest in workforce development by funding apprenticeship training.

  Employers with an annual pay bill of more than £3 million must pay the apprenticeship levy. Levy funds can be managed through the government apprenticeship service and used to support the training and assessment of apprentices. The government adds a 10% top-up to levy funds.

  Non-levy paying employers will no longer contribute towards the training and assessment costs of apprentices aged under 25. The government will cover 100% of these costs, up to the maximum funding band available for each apprenticeship standard.

  If you want to know more about the Growth and Skills Levy and how it affects your business, click here or download our guide here

• Employer National Insurance Savings

  Hiring an apprentice could reduce your employment costs as you may not need to pay Employer Class 1 National Insurance contributions for apprentices who:

  • Are under the age of 25
  • Are enrolled on an approved apprenticeship standard 
  • Earn less than £967 per week (£50,270 per year)

  This can provide a valuable saving while you invest in developing skilled employees. Apprentices will continue to pay their own National Insurance contributions through their salary.

• Employer Incentive Payments

  Young Apprenticeship Payment - Employers can receive £1,000 when recruiting an apprentice aged 16–18 or 19–24-year-olds with an EHCP or care leavers status. The payment is split into two instalments of £500, at approximately 90 days and 365 days into the apprenticeship.

  Non Levy Hiring Grant - From October 2026, non levy employers can claim a £2000 apprenticeship hiring payment when recruiting an apprenticeship aged 16-24. The payment is made in two instalments of £1,000, around 90 days into the apprenticeship, and again at 365 days. 

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