Levy-Paying Employers
Employers with an annual UK pay bill of more than £3 million pay into the Growth & Skills Levy at 0.5% of their payroll, less a £15,000 annual allowance. Funds are held within the Apprenticeship Service account and can be used to pay for apprenticeship training and end-point assessment.
Key points:
- Levy funds can be used to fund apprenticeship training and assessment
- Newly accrued levy funds expire after 12 months if not used.
- The previous 10% government levy top-up has been removed.
- Employers can transfer up to 50% of their available levy funds to other organisations.
- Where levy funds are exhausted, employers may move into the co-investment model, depending on apprentice age and eligibility.
Non-Levy Employers
Employers with an annual pay bill below £3 million can access government apprenticeship funding through the Apprenticeship Service.
For apprentices aged 16–24
For eligible apprentices aged 16-24, training and assessment costs are currently fully funded by the Government, up to the funding band maximum.
For apprentices aged 25 and over
For apprentices aged 25 and over, employers typically contribute 5% of training and assessment costs, with the government funding the remaining 95%.
Growth & Skills Levy
The Growth and Skills Levy is expanding the apprenticeship offer and providing employers with additional ways to develop skills in their workforce.
Alongside full apprenticeships, the offer includes:
- Foundation apprenticeships: Level 2 employment and training programmes designed to help eligible young people develop job-specific skills and progress into further employment or apprenticeships.
- Apprenticeship units: Shorter, flexible training programmes designed to develop specific skills in existing employees aged 19 and over.
Grants and incentives for employers
Employers may also be eligible for additional financial support when recruiting an apprentice.
£3,000 Youth Jobs Grant
Available to employers recruiting an eligible 18–24-year-old who has been unemployed and receiving Universal Credit for six months or more.
£2,000 Apprenticeship Incentive for SMEs
Available to employers taking on an apprentice aged 16-24 (paid in instalments to support retention) after 1 October 2026.
£1,000 age/support based incentive
Employers can receive an additional £1,000 when employing an apprentice aged 16–18, or an apprentice aged 19–24 who has an Education, Health and Care (EHC) plan or has been in care.
Funding and incentives are subject to eligibility criteria and may change.
Check the latest apprenticeship funding information.
Additional support for construction employers
The Construction Industry Training Board (CITB) offers additional grants to eligible construction employers.
Current support includes:
- £2,500 per year apprenticeship attendance grant (paid quarterly)
- £3,500 achievement grant upon successful completion
- Available to CITB-registered employers using approved apprenticeship providers. *
Funding values and eligibility criteria are subject to change. Please visit the CITB website for the latest information.
Need Advice?
Apprenticeship funding can vary depending on your organisation, apprentice age, sector and workforce goals.
Our Employer Partnerships Team can help you understand the options available and identify the most appropriate funding route for your business.
Call: 01743 653444
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