What Will it Cost?

How Apprenticeships are Funded

Apprenticeships are a really affordable way of growing your business and the skills of your staff and how they are funded depends on your business.

If you are an Apprenticeship Levy paying business (with an annual payroll bill of £3 million or more) then the total Apprenticeship training cost will be deducted from your Levy pot. Where you exceed the funds in your account you will pay 5% towards the remaining training cost.

If you are a non-Levy paying employer, there will be no cost to you for training an Apprentice aged 16 – 21. If the Apprentice is over 21 you will pay only 5% of the training cost. For small businesses (with less than 50 employees) there will be no cost to you for training an Apprentice aged between 22 and 24 years old, who has an Education Health Care Plan or has been in the care of their local authority.

 

Additional Grants and Incentives

Employers who hire Apprentices may be eligible for various grants and incentive payments to support the cost of training and development. Depending on your location and industry, these incentives can include government grants, Apprenticeship levy funding, and employer incentive payments for hiring young Apprentices or those from underrepresented groups. These financial supports help businesses invest in workforce development while reducing training costs.

Here are the most common examples of additional funding to support the training of Apprentices:

• An incentive payment of £1000 is available to any employer hiring an Apprentice aged 16-18 (or aged 19-24 with an Education Health Care Plan or who is a care leaver). For Apprenticeships with a published typical duration of 12 months or more, payments will be made (in two equal instalments) via the College after 90 days and 365 days on programme, before being passed to you as the employer. For Apprenticeships with a published typical duration of less than 12 months, the second payment will be made 242 days after the Apprenticeship starts. If the Apprenticeship has a published duration of 12 months or more but it is completed early, no second payment will be made.
• Employers can also apply for a levy funding transfer from another employer – these funds are used to pay for 100% of the training and assessment cost of the apprenticeship, meaning no employer co-investment.

For the latest details on available funding, eligibility criteria, and application processes, get in touch with us. A member of the team will be happy to talk through your individual circumstances and provide the most relevant advice.

 

Save on National Insurance Contributions for Apprentices

Did you know, you can save on employer’s National Insurance contributions by hiring apprentices? Click here for more info.

 

Apprentice Wages

For the latest information on National Minimum Wage Rates for Apprentices, visit National Minimum Wage and National Living Wage rates – GOV.UK or speak to a member of the team.