Are all Apprenticeships government funded?

One of the biggest questions about apprenticeships is: “Who pays for the training?” 

The good news is that Apprenticeships are predominantly funded by the government. This makes Apprenticeships one of the most accessible ways to gain a nationally recognised qualification while earning. 

Here’s how it works: 

• Large employers pay into an Apprenticeship fund (known as the Apprenticeship Levy) and use this to cover training costs. 
• Smaller employers (SMEs) usually pay just 5% of the training cost, with the government covering the remaining 95%. 
• Young apprentices (16–18) – and some aged 19–24 with additional needs – are fully funded, meaning the employer pays nothing for the training. 

This funding model allows apprentices to gain real workplace experience and qualifications without tuition fees — and enables employers to develop the skills their workforce needs, cost-effectively. 

The UK government plays a significant role in supporting Apprenticeship training. Although, the level of funding depends on the size of the employer, the age of the apprentice, and whether the employer pays the Apprenticeship Levy. 

Employers and the government will share the cost of the course. These training costs are paid directly to the provider. 

Each Apprenticeship course/standard will have a cost alongside. Once the course is chosen for the apprentice, they will need to apply for it. You can do this through the government website. This way, you can find which training provider delivers the specific standard close to your location.  

Employers who are classed as levy paying businesses will use their levy pot to pay for the course their employee is enrolling in, or when hiring an apprentice. 

Anyone business who is considered a Small/Medium Enterprise (SME) they will only have to contribute 5% of the training cost. The rest is covered by the government. 

A large business who has a levy pot have the option to transfer up to 50% of their levy fund each year to another business. This way, larger businesses can support SMEs and use their funding to develop skills in other sectors. The larger business can decide where their levy transfer goes, and what Apprenticeship it supports. 

The transfer is calculated for a total of 50% of the businesses previous financial year’s Apprenticeship levy fund. This calculation works out as: 

• Total levy declared in the previous year 
• Additional top-up of 10% provided by the government 

While the government often covers all or most of the training costs, one thing is never funded is the apprentice’s wages. Employers are responsible for paying their apprentices at least the National Minimum Wage, which varies depending on their age and stage of the apprenticeship. 

Beyond training costs, the government offers financial incentives to encourage businesses to take on apprentices. 

One incentive includes £1,000 payment for each apprentice aged 16–18, or aged 19–24 with an Education, Health & Care Plan (EHCP) or who has been in care. Additional funding support for English and maths is available if the apprentice needs it to complete their course. 

These incentives reduce the upfront financial commitment for employers and make apprenticeships even more cost-effective. 

Apprenticeships are a shared investment. The government funds most or all the training, while the employer funds the wages, and in some cases, a small share of the training cost. For many employers, this helps make Apprenticeships an affordable and enticing way to bring in fresh talent while developing future skills. 

When you choose Fareport as your training provider, we walk you through all steps and make sure you and your apprentice get the most out of the Apprenticeship, from funding, all the way through to individual training.  

Contact Fareport today, complete our enquiry form and we can jumpstart the process for you to enrol an employee onto one of our many courses.