Understanding Apprenticeship funding can help employers make the most of available financial support. We guide you through the funding options, including government contributions, Apprenticeship levy funding, and employer incentives, ensuring Apprenticeships remain a cost-effective way to develop skills and grow careers.
Apprenticeship Funding
Your Guide to Apprenticeship Funding Options (Levy & Non-Levy)
Apprenticeship funding in England supports employers by subsidising the cost of training and assessment — meaning your business can train talent for less. How much you pay depends on whether you’re a Levy-paying employer or a Non-Levy employer (SME).
How Government Funding Works
Levy vs Non-Levy Employers – Quick Overview
- Levy employers pay the Apprenticeship Levy if annual payroll > £3m.
- Non-Levy employers (SMEs) do not pay the levy.
- Government support is provided through the Apprenticeship Service account.
Levy-Paying Employers
Employers with an annual pay bill over £3 million pay a 0.5% Apprenticeship Levy which is held in a digital account.
Key points:
- Levy funds pay for apprenticeship training & assessment.
- Government adds a 10% top-up to your Levy funds.
- Unused Levy expires after 24 months.
- You can transfer up to 50% of unused Levy funds to other employers.
Levy funds can cover:
- Training delivered by an approved provider
- End-Point Assessment
- Functional Skills (if required)
Levy funds DO NOT cover:
- Apprentice wages
- Travel / accommodation
- Employer supervision time
Non-Levy Employers (SMEs)
If your business does not pay the Apprenticeship Levy, Government co-invests in apprenticeship training costs.
Standard Co-Investment
- You pay 5% of the training & assessment cost.
- Government pays 95%, up to the funding band maximum.
- You agree payment terms directly with your training provider.
For Example, If the funding band maximum for a standard is £10,000, you pay £500 and the Government covers £9,500.
Reserve funding before you recruit or make an offer (via your Apprenticeship Service account).
Levy Transfers – Fully Funded Option for SMEs
If your business is a non-levy employer, you may be able to access a Levy Transfer from a levy-paying employer. This can cover 100% of the apprenticeship training and assessment costs, meaning you would not need to pay the 5% employer contribution.
Levy transfers are a valuable funding option and we can support you in applying for and securing a transfer where available.
Reserve funding before you recruit or make an offer
As a non-levy employer, you must reserve Apprenticeship funding through your Apprenticeship Service account before you advertise the role or make a formal job offer to a candidate. This ensures that government funding (95% of the training costs) is secured and available for your chosen apprenticeship standard and start date. Reservations can typically be made up to three months in advance and are subject to Government funding availability.
We can support you step-by-step with setting up your Apprenticeship Service account, reserving funds, and managing the approval process to ensure everything is in place before your apprentice starts.
100% Government-Funded Apprenticeships
From 1 April 2024, non-Levy employers can receive full funding (100% Government support, up to the funding band maximum) for apprenticeships when the apprentice is either:
- Aged 16–21 at the start of training
- Aged 22–24 with an EHC plan and/or care leaver status
This means no employer contribution towards training or assessment costs (up to the funding band). If you agree a price above the funding band maximum, you must fund the difference.
What Funding Covers
Government funding pays for:
- Training delivery up to the funding band maximum
- End-point assessment
- English & Maths where required
It does not pay:
- Apprentice Wages
- Travel/accomodation
- Employer on-the-job supervision
These costs remain the employer’s responsibility.
Employer Responsibilities
Regardless of funding:
- You must employ the apprentice and pay them at least National Minimum Wage for apprentices.
- Funding must be reserved before training starts (unless using a Levy transfer).
Next Steps – Get started with Fareport Training
Ready to access apprenticeship funding? We’ll guide you through every step.
- Speak to our team to confirm your eligibility and funding options (Levy, non-levy or levy transfer)
- Set up or access your Apprenticeship Service account with our support
- Reserve apprenticeship funding correctly and on time
- Select the right Apprenticeship Standard for your business needs
- Agree training and pricing in line with funding band rules
- Advertise and recruit your apprentice with our guidance
Our team will manage the process with you from initial enquiry through to enrolment, making apprenticeship funding simple, compliant and cost-effective.
Contact us today to secure your apprenticeship funding and get started.