Apprenticeship Levy Funding to help futureproof your workforce

Employee and employer shaking hands in an office with other employees clapping in the background

Dedicated funding for hiring apprentices

The Apprenticeship Levy is a government initiative that provides employers with dedicated funding for the hiring and training of apprentices. The scheme aims to encourage them to use apprenticeship programmes to futureproof their teams by hiring new talent, and upskilling or reskilling their existing teams through apprenticeships.

HMRC collects the Levy through PAYE, similar to tax and National Insurance. Employers can access funds via the Digital Apprenticeship Service (DAS) to pay for apprenticeship training and End Point Assessment costs.

Funding for levy payers

Hiring an apprentice is a great way to develop your team, and with the Government's apprenticeship levy, you can access funding to cover your costs. Apprenticeship funding differs for Levy Payers (employers with a payroll of over 3 million annually). As a Levy payer, you can use your Levy fund for apprenticeships.

Essential Facts:

  • Any employers in any sector with a payroll bill of more than £3million per year pay the Apprenticeship Levy
  • The Apprenticeship Levy is calculated at 0.5% of your entire payroll.
  • Employers will not pay the first £15,000 of the Levy
  • It will be collected every month on 'live' HMRC payroll data

Invest your levy funds in either hiring apprentices or upskilling your existing team. We offer a range of apprenticeships to develop and strengthen your workforce.

Contact our team

Apprentices using a manufacturing machine under the supervision of an experienced employee

Funding for non-levy payers

As an employer who does not pay the apprenticeship levy, you only need to pay 5% to train an apprentice, and the Government pays the rest. You will work with us to set up and agree a payment schedule.

  • If you employ fewer than 50 employees, the Government will pay 100% of the apprenticeship training costs up to the funding band maximum for apprentices aged:
  • 16 to 18
  • 19 to 24 with an education, health and care plan provided by their local authority or has been in the care of their local authority

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Childcare apprentice sitting round a table with young children looking at a globe

Paying your apprentice

As an apprenticeship is a job, you (as an employer) are responsible for paying your apprentice for their regular working hours and any training they do as part of the apprenticeship. You must ensure that you pay your apprentices at least the National Minimum Wage rate, depending on their age and the year of their apprenticeship training.

However, we suggest paying them more than the minimum wage, as it will increase the number of applicants and increase employee retention.

Apprentice hourly rates from April 2024

Apprentice Under 18 18-20 21+
£6.40ph £6.40ph £8.60ph £11.44ph

Ready to empower your workforce?

No matter the size of your organisation, we can assist you in navigating the various routes to funding an apprenticeship.

Contact our team

Looking for more information?

Here are some links to detailed information on Gov.UK, covering apprenticeship funding and setting up an online account.

Apprenticeship funding
Apprenticeship funding and performance management rules
Apprenticeship funding bands
How to register and use the apprenticeship service as an employer
The Institute of Apprenticeships