How much it costs
If you don't pay the apprenticeship levy, or if you're a levy-paying employer but don't have enough funds, you'll need to pay 5% of the training and assessment costs for your apprentice. The government will cover the rest, up to the funding band maximum.
You’ll make payments directly to the training provider and agree on a payment schedule.
New starts from 1 April 2024:
For employers who do not pay the levy, the government will fully fund apprenticeship training costs, up to the funding band maximum, for apprentices who at the start of their apprenticeship training are:
- aged 16 to 21 years old (or 15 if their 16th birthday is between the last Friday of June and 31 August)
- aged 22 to 24 years old with an education, health and care (EHC) plan provided by their local authority and/or have been in the care of their local authority
For starts up to 31 March 2024:
If you have fewer than 50 employees, the government will fully fund apprenticeship training costs, up to the funding band maximum, for apprentices who at the start of their apprenticeship training are:
- aged 16 to 18 years old (or 15 if their 16th birthday is between the last Friday of June and 31 August)
- aged 19 to 24 years old with an education, health and care (EHC) plan provided by their local authority and/or have been in the care of their local authority
If you negotiate a price above the funding band maximum, you'll need to pay the difference.
Reserve funding: Create an apprenticeship service account to reserve apprenticeship funding. For more information, visit our help article or watch our video.
Paying your apprentice
You’re responsible for paying your apprentice for their normal working hours and any training they do as part of the apprenticeship. Pay them at least the National Minimum Wage based on their age and apprenticeship year.
Paying employer National Insurance contributions
You might not need to pay Class 1 National Insurance contributions for an apprentice if they:
- Are under 25 years old
- Are on an approved UK government apprenticeship standard or framework
- Earn less than £967 a week (£50,270 a year)
The apprentice still pays Class 1 National Insurance contributions through their salary. This exemption only benefits the employer.
More info: Read HMRC's guidance on paying National Insurance contributions.
Find a business to fund your apprenticeship costs
Large levy-paying businesses can pledge up to 50% of their unspent levy funds to other businesses of their choice. You can apply to receive a transfer of funds to cover 100% of your apprenticeship training and assessment costs, up to the funding band maximum.
View pledges: You can view all live pledges on our public website.
Learn more: Read our GOV.UK guidance for further information on how to apply.