Funding an apprenticeship
Apprenticeships are one of the most cost-effective ways to develop talent, and funding an apprenticeship doesn’t have to be complicated. Whether you're upskilling existing employees or hiring new talent, there is dedicated government support to reduce your costs and make high-quality training accessible.
Who pays for an apprenticeship?
Apprenticeship funding is shared between employers and the government. The amount you pay depends on the size of your organisation and whether you pay the Apprenticeship Levy.
If you’re a levy-paying employer, your digital Apprenticeship Service (DAS) account will fund training directly.
If you don’t pay the Levy, the government will cover 95% of the training cost, leaving you with just a 5% contribution.
How apprenticeship funding works
Apprenticeship funding is designed to remove financial barriers so employers can invest in skills. Once you choose a training provider and apprenticeship standard, funds are drawn down monthly to cover the cost of training and assessment.
Your financial responsibility depends on:
Whether you pay the Apprenticeship Levy
The cost band of the apprenticeship
Your workforce size and eligibility for incentives
This structure ensures employers of all sizes can access funding for apprenticeship training while maintaining quality and accountability.
The Apprenticeship Levy
The Apprenticeship Levy applies to businesses with an annual payroll above £3 million. You’ll pay 0.5% of your payroll into your Levy fund, which can then be used exclusively for apprenticeship training.
Levy funds expire after 24 months if unused. This means that investing in apprenticeships is one of the easiest ways to make full use of what you’re already paying for.
If you don’t have enough Levy funds, the government will top up the difference by 95%.
Employer incentives and additional support
Beyond core funding, employers may receive extra support depending on their apprentice’s circumstances. These incentives help employers reduce costs further while widening access to digital careers.
This may include:
FAQs
Apprenticeships are funded through a co-investment model.
Here’s how the process works:
Choose an apprenticeship standard and training provider.
Funds are allocated (via Levy or government co-investment).
Payments are drawn down monthly to cover training and assessment.
Employers pay 0% or 5%, depending on Levy status.
This clear structure means any organisation can understand how to get apprenticeship funding and confidently plan their training strategy.