Apprenticeship funding in England

Find out more about apprenticeship funding in England

Employers who pay the apprenticeship levy

Employers with annual pay bills of more than £3 million have to pay an apprenticeship levy of 0.5%.

The level of funding that enters an employer’s apprenticeship account each month is calculated as:

  • The monthly levy they pay to HMRC
  • Multiplied by the percentage of their pay bill that goes to their employees living in England
  • Plus a 10% government top-up on this amount

You can use funds in your account to pay only for apprenticeship training and assessment for apprentices that work at least 50% of the time in England, and only up to the funding band maximum for that apprenticeship.

Co-investment

Employers with annual pay bills of less than £3 million have to ‘co-invest’ 5% towards the total cost of apprenticeships. The government pays the remaining 95%.

Any levy-paying employer who wants to invest more in apprenticeship training than they hold in their account can also co-invest at the same rate.

The government will pay 100% of training costs for small businesses that employ apprentices aged 16-18. Small businesses are defined as those employing up to 50 people, and with annual pay bills of less than £3 million.