Apprenticeships are an effective and cost-efficient way to train your workforce (new and existing) – but one of the most common questions we’re asked is: who actually pays for apprenticeship training?
The answer depends on whether you’re a learner or employer, the size of your business, how much you pay in wages, and the age of the apprentice.
Here’s a simple breakdown so its clear who pays for apprenticeship training.
For employers: understanding apprenticeship funding
- Large Employers (Apprenticeship Levy Payers)
If your annual payroll exceeds £3 million, you will already be paying into the Apprenticeship Levy. This money goes into a digital account that you can use to fund apprenticeship training. The government adds a 10% top-up to your levy funds, so you get more out than you put in.
- Levy funds can currently only be used for apprenticeship training and assessment with approved training providers (Apprenticeship provider and assessment register).
- If you don’t use your levy funds within 24 months, they expire.
2. Small and Medium Employers (Non-Levy Payers)
If your annual payroll is under £3 million, you don’t pay the levy, but you can still access government-funded apprenticeships.
- You’ll pay just 5% of the total training cost.
- The government funds the remaining 95%.
- You could receive 100% government funding for apprentices aged 16–21 or aged 22 to 24 with an education, health and care (EHC) plan provided by their local authority and/or have been in the care of their local authority.
- You could also benefit from levy share, where larger employers transfer unused levy funds to cover your training costs.
3. Additional Incentives
£1,000 incentive payments are available for employers who take on apprentices aged 16–18 or aged between 19 and 24 for care leavers or those with an education, health and care (EHC) plan.
For apprentices: ‘what do I have to pay for my apprenticeship?’
Nothing. Apprentices don’t pay for their training – it’s fully funded by the government and/or their employer. In fact, apprentices earn a wage while they learn, gaining recognised qualifications and valuable work experience.
What’s covered by the funding?
Funding covers the cost of:
- Apprenticeship training
- Assessment and End Point Assessment (EPA)
- English and maths functional skills (if required)
It does not cover:
- Wages
- Travel or accommodation
- Licences to practice (where not part of the apprenticeship standard)
Need help navigating apprenticeship funding?
At Poultec, we support employers every step of the way – from identifying funding options to delivering high-quality tailored training across various apprenticeship programme areas, including:
- Business administration
- Customer service
- Leadership and management
- Dental
- Healthcare
- Food manufacturing
- Poultry production
Whether you’re levy-paying or not, we’ll help you make the most of apprenticeship training.
Contact us to find out how apprenticeships can work for your business.
