Hiring an apprentice is a great way to bring in fresh talent and enhance skills within your team. Whether you are a large organisation or a small business, government funding is available for apprenticeships.
The amount you get depends on whether you pay the apprenticeship levy or not.
The following section details the funding routes for apprenticeships, but our expert Employer Engagement Team will guide you through the process and advise you on any costs, funding options and incentives.
Levy payers
Employers who have an annual PAYE bill of £3m or more will pay 0.5% of their annual pay bill. The government also adds a 10% top-up to account funds, and if the levy funds run out, the employer will pay only 5% of the remaining costs, and the government covers the rest, up to the funding band maximum for each apprenticeship.
Non-levy payers
Most businesses that do not pay the apprenticeship levy contribute 5% of training costs. However, there are exceptions to this, including:
- They receive a levy transfer from another employer
- have an apprentice aged under 22 (for new apprenticeship training starts from 1 April 2024)
- have an apprentice aged between 22 and 24 with an Education, Health and Care (EHC) plan provided by their local authority and/or has been in care (for new apprenticeship training starts from 1 April 2024).
Additional funding for employers
- £1,000 additional funding for businesses with apprentices aged under 19, or aged between 19 and 24 for care leavers or those with an education, health and care (EHC) plan
- Additional grants and support available for CITB registered employers and their apprentices.
English and Maths
Funding is available for upskilling if your apprentice needs to achieve Level 2 qualifications in English and/ or Maths.
National Insurance exemption
Employers are exempt from paying National Insurance contributions for apprentices under 25 earning under £50,270 annually.
Levy transfer
Larger employers who can use their apprenticeship service account to transfer up to 50% of their unused levy funds to other businesses. This helps them cover apprenticeship training and assessment costs, up to the funding band maximum. Where funds are available, we will work with you to facilitate a levy transfer.
