Employer Funding and Levy
Apprenticeship Funding in England
The UK Government provides funding to help employers in England with the cost of apprenticeship training and assessment. The funding available depends on whether the employer pays the Apprenticeship Levy, the age of the apprentice and, in some circumstances, the funding available in the employer’s Apprenticeship Service account.
Government funding can be used towards the cost of apprenticeship training and assessment, up to the maximum funding band for the apprenticeship.
Non-Levy Employers
Employers who do not pay the Apprenticeship Levy can receive significant government support towards apprenticeship training and assessment costs.
For apprentices starting from 1 August 2026:
- Apprentices aged 16 to 24: The Government will pay 100% of the training and assessment costs, up to the apprenticeship’s funding band maximum.
- This also applies to an apprentice aged 15 where their 16th birthday falls between the last Friday of June and 31 August.
- Apprentices aged 25 and over: The employer contributes 5% of the agreed training and assessment cost, with the Government paying the remaining 95%, up to the funding band maximum.
Employers remain responsible for paying the apprentice’s wages and other employment costs.
Levy Employers
The Apprenticeship Levy is paid by employers with an annual pay bill of more than £3 million, subject to the rules applying to connected companies and charities.
The levy is charged at 0.5% of an employer’s annual pay bill, with an annual Apprenticeship Levy allowance of £15,000.
Levy-paying employers receive funds in their Apprenticeship Service account that can be used towards eligible apprenticeship training and assessment costs.
Where a levy-paying employer has used all the available funds in their account, for apprentices starting from 1 August 2026:
- Apprentices aged 16 to 24: The Government will pay 100% of the training and assessment costs, up to the funding band maximum.
- This also applies to an apprentice aged 15 where their 16th birthday falls between the last Friday of June and 31 August.
- Apprentices aged 25 and over: The employer contributes 25% of the training and assessment costs, with the Government paying the remaining 75%, up to the funding band maximum.
National Insurance Contributions
Employers can benefit from a zero rate of employer Class 1 National Insurance contributions for qualifying apprentices under the age of 25.
