Apprenticeship Funding
For employers in England, government apprenticeship funding is readily accessible. Alongside national schemes, regional and local grants are available, as well as Levy transfer schemes, all of which are governed by the official apprenticeship funding rules and guidance.
What Apprenticeship Funding is available?
Apprenticeship Levy
For large organisations with an annual payroll exceeding £3 million, the Growth and Skills Levy serves as a dedicated funding resource to invest in apprenticeship training for both new recruits and existing staff. The Levy is charged at 0.5% of your total payroll above the £3 million threshold.
These funds are held in a ringfenced digital account, which can be used to upskill your workforce through approved apprenticeship programmes. Whether you’re onboarding new talent or enhancing the capabilities of current employees, your Levy funds can be spent on training and assessment costs for eligible apprenticeship courses.
Co-Investment Model
If your business does not pay into the Growth and Skills Levy, you’re in an excellent position to benefit from generous government apprenticeship funding.
From April 2024, non-Levy paying employers receive 100% government funding for apprenticeship training for learners aged 16 to 21. For apprentices aged 22 and over, the government will cover 95% of the training costs.
As the employer, you’ll be responsible for the remaining 5% contribution for apprentices aged 22 and above. This payment is made directly to your chosen training provider at the start of the programme.
This co-investment model also applies to Levy-paying employers who have used up the funds in their digital apprenticeship service account.
£1000 Young Apprentice Grant
Supporting a young person into the world of work brings long-term value to both your business and the wider community.
In addition to government apprenticeship funding that covers training costs, employers can also receive a £1,000 grant for hiring an apprentice aged 16 to 18.
This grant is also available if you employ an apprentice aged 19 to 25 who has an Education, Health and Care (EHC) plan or has previously been in the care of their local authority.
As a further incentive, businesses are exempt from paying National Insurance contributions for apprentices under the age of 25, helping you reduce employment costs while investing in future talent.
What Apprenticeship Funding is available?
Apprenticeship Levy
For large organisations with an annual payroll exceeding £3 million, the Growth and Skills Levy serves as a dedicated funding resource to invest in apprenticeship training for both new recruits and existing staff. The Levy is charged at 0.5% of your total payroll above the £3 million threshold.
These funds are held in a ringfenced digital account, which can be used to upskill your workforce through approved apprenticeship programmes. Whether you’re onboarding new talent or enhancing the capabilities of current employees, your Levy funds can be spent on training and assessment costs for eligible apprenticeship courses.
Co-Investment Model
If your business does not pay into the Growth and Skills Levy, you’re in an excellent position to benefit from generous government apprenticeship funding.
From April 2024, non-Levy paying employers receive 100% government funding for apprenticeship training for learners aged 16 to 21. For apprentices aged 22 and over, the government will cover 95% of the training costs.
As the employer, you’ll be responsible for the remaining 5% contribution for apprentices aged 22 and above. This payment is made directly to your chosen training provider at the start of the programme.
This co-investment model also applies to Levy-paying employers who have used up the funds in their digital apprenticeship service account.
£1000 Young Apprentice Grant
Supporting a young person into the world of work brings long-term value to both your business and the wider community.
In addition to government apprenticeship funding that covers training costs, employers can also receive a £1,000 grant for hiring an apprentice aged 16 to 18.
This grant is also available if you employ an apprentice aged 19 to 25 who has an Education, Health and Care (EHC) plan or has previously been in the care of their local authority.
As a further incentive, businesses are exempt from paying National Insurance contributions for apprentices under the age of 25, helping you reduce employment costs while investing in future talent.
Regional and Local Funding
We’ve compiled a list of regional apprenticeship funding opportunities to help employers access additional support in their local area.
Please note that the information provided is intended as a general guide. While we make every effort to ensure accuracy at the time of publication, these schemes are not administered by Access Industry. As such, they may be subject to specific eligibility criteria, limited availability, or sudden closure without notice.
This list is not exhaustive, and further government apprenticeship funding or regional initiatives may be available in your area.
- Durham University Apprenticeship Levy Transfer
Durham University is offering apprenticeship funding for all job roles and at all apprenticeship levels within Durham.
- Newcastle City Council Apprenticeship Levy Transfer
Newcastle City Council provides a growth and skills levy scheme for businesses operating within Newcastle that do not pay the levy, have a workforce of 250 or fewer employees, and either hold accreditation under the Good Work Pledge or can show they are actively working towards it.
- South Tyneside Borough Council Apprenticeship Levy Transfer
Local businesses in South Tyneside are encouraged to submit bids for a portion of the £35,000 available. This funding, which comes from unspent growth and skills levy funds held by the council, can be allocated to local employers to help cover the costs of apprentice training and assessments.
- Tees Valley Combined Authority Apprenticeship Grants
Employers who create new apprenticeship roles within the Tees Valley—covering Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland, and Stockton-on-Tees—can apply for grants of up to £3,000 offered by Tees Valley Combined Authority.
This funding is aimed at supporting SMEs operating in sectors experiencing high demand and rapid growth.
- Sunderland City Council Apprenticeship Levy Transfer
Sunderland City Council has unallocated Growth and Skills Levy funds and is inviting applications from Sunderland-based businesses interested in developing their workforce. This funding is available to support both SMEs and larger organisations.
- Cheshire East Council Levy Apprenticeship Transfer
Cheshire East Council is able to transfer up to a quarter of its levy funds to other employers, supporting the increase of high-quality apprenticeship opportunities throughout Cheshire East.
- Greater Manchester Combined Authority Levy Matchfinder
The Greater Manchester Combined Authority offers apprenticeship funding to help expand the number of apprenticeship opportunities throughout the city.
Both large and small employers can sign up on this platform to either transfer or receive funds from their apprenticeship digital accounts, covering the training expenses for an apprentice.
- Liverpool City Region Combined Authority Apprenticeship Brokerage
The Liverpool City Region Combined Authority offers guidance and support regarding Levy Transfers between employers, as well as advice on how to make the most of Apprenticeship funding.
- Lancashire County Council Levy Transfer
Since April 2017, Lancashire County Council has contributed to the Growth and Skills Levy.
This enables employers located in Lancashire to apply for available surplus funds and benefit from high-quality training for their organisation.
- Workwhile
Workwhile offers free guidance on how to make use of their unspent apprenticeship levy, as well as supporting small businesses that want access to an apprenticeship levy.
- Brighton and Hove City Council Levy Transfer
Brighton & Hove City Council, as a major levy-paying employer, is able to transfer up to 25% of its apprenticeship levy funds to other local employers within the city.
To be eligible to apply for these levy transfer funds, organisations must not be levy-paying employers.
- Southampton City Council Levy Transfer
As a significant levy-paying employer, Southampton City Council can transfer up to 25% of its apprenticeship levy funds to local organisations to help increase apprenticeship opportunities across the city.
- Surrey County Council Levy Transfer
Surrey County Council aims for levy transfers to create apprenticeship opportunities and provide inclusive career pathways that benefit local residents.
Due to high demand for support and limited transfer funds, applications will be handled on a first-come, first-served basis. Applicants must also show how their apprenticeship will align with Surrey’s key priorities.
- Somerset County Council Levy Transfer
Somerset County Council provides Growth and Skills Levy transfers, allowing businesses that pay the levy to transfer up to 25% of their funds annually to support apprenticeships with other employers.
If the apprentice or employer meets the required criteria, Somerset County Council welcomes expressions of interest to fund the apprenticeship through levy transfer.
- Devon County Council Levy Transfer
Devon County Council collaborates with other employers through the levy transfer scheme, helping them to recruit new apprentices and develop current staff by funding apprenticeship training.
The council can transfer up to 25% of its levy funds each year.
- West of England Combined Authority Levy Transfer
Employers located within the West of England Combined Authority region can receive apprenticeship support via the Workforce for the Future Scheme and Share to Support programme.
These initiatives enable levy-paying employers to transfer their unused apprenticeship funds, helping smaller local businesses cover the training costs for new apprentices or to upskill their current workforce.
- Cornwall Council Levy Transfer
As a major levy-paying employer with a strong Apprentice Strategy, Cornwall Council can transfer up to 25% of its apprenticeship levy funds to other employers.
Applicants must demonstrate how their apprenticeship will contribute to the Council’s strategic objectives.
NOTE: Growth and Skills Levy funds through Cornwall Council are currently closed. You can monitor when it reopens on Cornwall Council’s website.
Regional and Local Funding
We’ve compiled a list of regional apprenticeship funding opportunities to help employers access additional support in their local area.
Please note that the information provided is intended as a general guide. While we make every effort to ensure accuracy at the time of publication, these schemes are not administered by Access Industry. As such, they may be subject to specific eligibility criteria, limited availability, or sudden closure without notice.
This list is not exhaustive, and further government apprenticeship funding or regional initiatives may be available in your area.
North East
- Durham University Apprenticeship Levy Transfer
Durham University is offering apprenticeship funding for all job roles and at all apprenticeship levels within Durham.
- Newcastle City Council Apprenticeship Levy Transfer
Newcastle City Council provides a growth and skills levy scheme for businesses operating within Newcastle that do not pay the levy, have a workforce of 250 or fewer employees, and either hold accreditation under the Good Work Pledge or can show they are actively working towards it.
- South Tyneside Borough Council Apprenticeship Levy Transfer
Local businesses in South Tyneside are encouraged to submit bids for a portion of the £35,000 available. This funding, which comes from unspent growth and skills levy funds held by the council, can be allocated to local employers to help cover the costs of apprentice training and assessments.
- Tees Valley Combined Authority Apprenticeship Grants
Employers who create new apprenticeship roles within the Tees Valley—covering Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland, and Stockton-on-Tees—can apply for grants of up to £3,000 offered by Tees Valley Combined Authority. This funding is aimed at supporting SMEs operating in sectors experiencing high demand and rapid growth.
- Sunderland City Council Apprenticeship Levy Transfer
Sunderland City Council has unallocated Growth and Skills Levy funds and is inviting applications from Sunderland-based businesses interested in developing their workforce. This funding is available to support both SMEs and larger organisations.
North West
- Cheshire East Council Levy Apprenticeship Transfer
Cheshire East Council is able to transfer up to a quarter of its levy funds to other employers, supporting the increase of high-quality apprenticeship opportunities throughout Cheshire East.
- Greater Manchester Combined Authority Levy Matchfinder
The Greater Manchester Combined Authority offers apprenticeship funding to help expand the number of apprenticeship opportunities throughout the city. Both large and small employers can sign up on this platform to either transfer or receive funds from their apprenticeship digital accounts, covering the training expenses for an apprentice.
- Liverpool City Region Combined Authority Apprenticeship Brokerage
The Liverpool City Region Combined Authority offers guidance and support regarding Levy Transfers between employers, as well as advice on how to make the most of Apprenticeship funding.
- Lancashire County Council Levy Transfer
Since April 2017, Lancashire County Council has contributed to the Growth and Skills Levy. This enables employers located in Lancashire to apply for available surplus funds and benefit from high-quality training for their organisation.
South East
- Brighton and Hove City Council Levy Transfer
Brighton & Hove City Council, as a major levy-paying employer, is able to transfer up to 25% of its apprenticeship levy funds to other local employers within the city. To be eligible to apply for these levy transfer funds, organisations must not be levy-paying employers.
- Southampton City Council Levy Transfer
As a significant levy-paying employer, Southampton City Council can transfer up to 25% of its apprenticeship levy funds to local organisations to help increase apprenticeship opportunities across the city.
- Surrey County Council Levy Transfer
Surrey County Council aims for levy transfers to create apprenticeship opportunities and provide inclusive career pathways that benefit local residents.
Due to high demand for support and limited transfer funds, applications will be handled on a first-come, first-served basis. Applicants must also show how their apprenticeship will align with Surrey’s key priorities.
South West
- Somerset County Council Levy Transfer
Somerset County Council provides Growth and Skills Levy transfers, allowing businesses that pay the levy to transfer up to 25% of their funds annually to support apprenticeships with other employers.
If the apprentice or employer meets the required criteria, Somerset County Council welcomes expressions of interest to fund the apprenticeship through levy transfer.
- Devon County Council Levy Transfer
Devon County Council collaborates with other employers through the levy transfer scheme, helping them to recruit new apprentices and develop current staff by funding apprenticeship training. The council can transfer up to 25% of its levy funds each year.
- West of England Combined Authority Levy Transfer
Employers located within the West of England Combined Authority region can receive apprenticeship support via the Workforce for the Future Scheme and Share to Support programme.
These initiatives enable levy-paying employers to transfer their unused apprenticeship funds, helping smaller local businesses cover the training costs for new apprentices or to upskill their current workforce.
- Cornwall Council Levy Transfer
As a major levy-paying employer with a strong Apprentice Strategy, Cornwall Council can transfer up to 25% of its apprenticeship levy funds to other employers.
Applicants must demonstrate how their apprenticeship will contribute to the Council’s strategic objectives.
NOTE: Growth and Skills Levy funds through Cornwall Council are currently closed. You can monitor when it reopens on Cornwall Council’s website.
Regional and Local Funding
The Access to Work scheme is a UK Government initiative designed to help individuals start or remain in employment by providing practical and financial support.
It is aimed at:
- People with disabilities
- Individuals with a long-term physical or mental health condition
Support is tailored to the individual’s specific needs and may include:
- A grant to cover the cost of practical support in the workplace
- Assistance with managing mental health at work
- Funding for communication support during job interviews
This could include items such as specialist equipment, assistive software, or transport costs such as taxis to and from work.
Employing apprentices through this scheme can help create a more inclusive and supported working environment, while also unlocking valuable funding support.
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Regional and Local Funding
What apprenticeship funding is available for employers?
Employers in the UK can access a range of apprenticeship funding options to support the recruitment and development of apprentices. The funding you’re eligible for depends on your organisation’s size, payroll, and the age or circumstances of the apprentice.
Here’s a breakdown of the main types of apprenticeship funding for employers:
- Growth and Skills Levy – This is available for larger employers. If your business has an annual pay bill over £3 million, you are required to pay the Growth and Skills Levy—a charge of 0.5% on your payroll above the threshold. These payments go into a ringfenced digital account, which you can use to fund apprenticeship training for new and existing staff. Funds must be used within 24 months. Levy-paying employers can also transfer up to 25% of their unused Levy funds to other businesses.
- Government Co-Investment – The option for non-apprenticeship levy employers. If your business does not pay the levy, the government offers significant support, which includes 100% of training costs covered for apprentices aged 16 to 21, and 95% of costs covered for apprentices aged 22 or over. You, as the employer, pay the remaining 5% directly to your chosen training provider. This co-investment model also applies to Levy-paying employers who have run out of funds.
- £1,000 Young Apprentice Incentive – Employers can receive a £1,000 government grant for hiring apprentices aged 16 to 18. Additionally, they are eligible for this grant for hiring apprentices aged 19 to 25 with an Education, Health and Care (EHC) plan, or those who have been in local authority care.
- National Insurance Relief – Employers do not pay National Insurance contributions for apprentices under the age of 25, providing further cost savings.
- Regional and Local Funding – Some local authorities and regional partnerships offer additional grants or Levy transfer schemes to support apprenticeships in specific sectors or regions. Availability varies, so it’s worth checking what’s on offer in your area.
- Access to Work – This UK Government scheme offers additional practical and financial support for apprentices with a disability or long-term health condition, helping with workplace adjustments, specialist equipment, transport, or mental health support.
How much does an apprenticeship cost an employer?
The cost of an apprenticeship to an employer in the UK depends on both the size of the business and the level of the apprenticeship.
Large employers—those with an annual payroll of over £3 million—are required to pay the Growth and Skills Levy. This is charged at 0.5% of their total pay bill and is used to fund apprenticeship training via a dedicated digital account.
Smaller employers, with a payroll of less than £3 million, do not pay the Levy. Instead, they usually contribute just 5% of the training costs, while the government covers the remaining 95% through the co-investment model.
In addition, the government offers enhanced support for certain apprentices. For apprentices aged 16 to 18, and those aged 19 to 25 with an Education, Health and Care (EHC) Plan, the government covers 100% of the training costs, meaning no employer contribution is required for training.
Who pays the salary for an apprenticeship?
It is the employer’s responsibility to pay the apprentice’s salary. This includes payment for both the time spent working on the job and any time spent undertaking formal training as part of the apprenticeship programme.
Apprentices are legally entitled to receive at least the National Minimum Wage for apprentices. A specific apprentice rate applies to those under the age of 19, as well as to those aged 19 or over who are in the first year of their apprenticeship.
After the first year, apprentices aged 19 and over are entitled to the full National Minimum Wage for their age group.
What small business apprenticeship funding is available?
Small businesses in the UK have access to a range of apprenticeship funding options designed to make hiring and training apprentices more affordable.
For apprentices aged 16 to 21, the government fully funds the cost of apprenticeship training for non-Levy paying employers, including small and medium-sized enterprises (SMEs). This means eligible small businesses do not need to contribute anything towards the cost of training for apprentices in this age group.
In addition, businesses with an annual payroll of under £3 million—and therefore not required to pay the Growth and Skills Levy—may also be eligible for co-investment funding for apprentices aged 22 and over. Under this model, the government funds 95% of the training costs, with the employer contributing the remaining 5%.
These funding opportunities help small businesses grow their workforce, invest in skills, and access valuable support with minimal upfront cost.
How does an employer apply for apprenticeship funding?
To access apprenticeship funding, employers must first create an Apprenticeship Service account via the government’s online portal.
Once the account is set up, the employer can select an appropriate apprenticeship standard and choose a registered training provider to deliver the programme.
If the employer pays the Growth and Skills Levy (i.e. has an annual payroll over £3 million), they can use the funds accumulated in their digital account to cover the full cost of training and assessment.
For non-Levy paying employers, funds can be reserved in advance through the Apprenticeship Service. These employers may be eligible for government co-investment, where the government funds up to 100% of training costs for apprentices aged 16–21, and 95% for those aged 22 and over.
Setting up the account is a straightforward process, and training providers can often support employers in managing funding applications and reservations.
How do I calculate the Apprenticeship Levy?
The amount your business pays in Growth and Skills Levy is calculated using the following formula:
Levy Rate (0.5%) × Annual Wage Bill (if over £3 million) – Allowance (£15,000) = Payable Levy Amount
If your company has an annual wage bill of less than £3 million, you will not be required to pay the Levy. This is because the amount due would fall below the £15,000 allowance, effectively reducing your liability to zero.
For example:
- 0.5% × £2,000,000 = £10,000
- £10,000 – £15,000 = £0 payable
In this case, the business would not pay any Growth and Skills Levy.
Only employers whose wage bill exceeds £3 million per year will pay the Levy, with contributions managed through HMRC’s PAYE process.
What can the Growth and Skills Levy be used for?
The Growth and Skills Levy can be used to cover the costs of apprenticeship training and assessment. This applies to both new apprentices joining your organisation and existing employees undertaking apprenticeship programmes to upskill or retrain.
Levy funds can also be transferred to other businesses, allowing larger employers to support apprenticeship training within their supply chain or local community. Up to 25% of your annual Levy funds can be transferred in this way.
However, it’s important to note that Levy funds can only be used for approved training and assessment costs through registered providers. They cannot be used to cover other expenses such as apprentice wages, travel costs, or recruitment fees.
Proper use of the Levy ensures your business maximises the value of its investment while contributing to workforce development.
What happens if I run out of Growth and Skills Levy funds?
If your business uses up its Growth and Skills Levy funds, you will automatically move to the co-investment model. Under this arrangement, the government covers 95% of the training and assessment costs, and your organisation is responsible for the remaining 5%. This funding applies up to the maximum funding band for each specific apprenticeship standard.
If the total cost of training exceeds the funding band limit, your business will need to cover any additional costs in full.
It’s also worth noting that Levy-paying employers can transfer up to 25% of their annual Levy funds to other eligible employers, such as smaller businesses or those in their supply chain.
Finally, any unused Levy funds expire after 24 months, so it’s important to plan your apprenticeship strategy to make the most of the available funding.
Can I transfer my Growth and Skills Levy funds to another business?
Yes, if your business pays the Growth and Skills Levy, you can transfer a portion of your unused funds to other employers to help them cover the cost of apprenticeship training.
As of the latest government guidance, you can transfer up to 50% of your annual Levy funds. These funds can support businesses within your supply chain, smaller employers, or organisations in your local community.
Transferred funds can only be used for apprenticeship training and assessment costs and must be used through an approved training provider and apprenticeship standard.
Transferring funds is a valuable way to maximise the impact of your Levy contributions and support wider workforce development.
Can Access Industry help my business with apprenticeship funding?
Yes, Access Industry can help. We specialise in helping businesses make the most of the Growth and Skills Levy Transfer Scheme. Whether you’re a levy-paying employer aiming to maximise your levy funds or an SME ready to grow your workforce through apprenticeships, our experienced team is here to guide you every step of the way.
For more information, enquire online or give us a call today. We are here to help you and your business.