Apprenticeship funding: how it will work

Department for Education

What does it do?

Changes to the apprenticeship funding system

The amount you get depends on whether you pay the apprenticeship levy or not. You pay the levy if you’re an employer with a pay bill over £3 million each year.

If you do not need to pay the levy

You pay 5% towards the cost of training and assessing your apprentice. You need to:

  • agree a payment schedule with the training organisation
  • pay them directly for the training

The government will pay the rest (95%) up to the funding band maximum. They’ll pay it directly to the training organisation.

You could be eligible for extra funding depending on both your and your apprentice’s circumstances.

Apprenticeships that started before 1 April 2019

You contribute 10% towards the cost of training and assessing your apprentice and the Government pays the rest (90%). This rate continues until your apprentice completes their training.

If you pay the levy

You’ll receive funds to spend on training and assessing your apprentices. The government will add 10%.

If you’re an employer with a pay bill over £3 million each year, you must pay the apprenticeship levy from 6 April 2017. Read guidance on how to pay the apprenticeship levy.

You will report and pay your levy to HMRC through the PAYE process.

The levy will not affect the way you fund training for apprentices who started an apprenticeship programme before 1 May 2017. You’ll need to carry on funding training for these apprentices under the terms and conditions that were in place at the time the apprenticeship started.

What will the benefits be for me?
If you are a levy-paying employer, you can now create an account on the apprenticeship service to:

receive levy funds for you to spend on apprenticeships
manage your apprentices
pay your training provider
stop or pause payments to your training provider
How do I access the service?

Apprenticeship employer helpline

How much will it cost